Key Tax Amendments Introduced by The Law No. 7587

The Law No. 7587 on Amendments to Certain Laws, dated 24 June 2026, was published in the Official Gazette dated 1 July 2026 (No. 33297) and entered into force on the same date.

Although the Law introduces amendments across a wide range of legislation, it contains several significant tax-related changes, particularly with respect to the Income Tax Code, the Tax Procedures Code, and the Value Added Tax ("VAT") Code.

The key tax amendments introduced by the Law include:

• Redefining the conditions under which taxi operators may benefit from the turnover-based taxation regime
• Introducing income tax and VAT exemptions for gains derived from the disposal of commercial transportation plates
• Revising the electronic tax notification (e-notification) system
• Expanding the authority of the Ministry of Treasury and Finance with respect to electronic tax records and documentation; and
• Extending the application period of certain temporary VAT incentives

In this Tax Alert, we summarize these amendments together with their practical implications.


1. Expansion of the Turnover-Based Taxation Regime for Taxi Passenger Transportation
 
Article 5 of Law No. 7587 amends Article 113 of the Income Tax Code by expanding the scope of the turnover-based taxation regime.

Prior to the amendment, only taxpayers falling within the scope of Article 113(1) of the Income Tax Code could benefit from this alternative taxation method. Following the amendment, taxpayers engaged in taxi passenger transportation may also benefit from this regime, provided that they satisfy the prescribed conditions.

The amendment grants taxi operators the option to elect the turnover-based taxation regime, subject to meeting the statutory requirements.

Accordingly, participation in the regime is entirely optional. Once the taxpayer's application is accepted, taxation will be carried out in accordance with the procedures set forth under Article 113 of the Income Tax Code rather than under the general taxation rules.

The requirement that all turnover must be recorded through the mandatory taxi fiscal device represents a significant step towards strengthening digital tax supervision and combating the informal economy.
 
What Is the Turnover-Based Taxation Regime?
 
The turnover-based taxation regime is an alternative taxation method under which taxable business income is determined not on the basis of revenues less deductible expenses, but by applying rates determined by the Ministry of Treasury and Finance directly to the taxpayer's turnover.

Under this regime, taxpayers are not required to take individual operating expenses into account. Instead, taxation is based on predetermined ratios applied to gross turnover, thereby simplifying record-keeping obligations and reducing administrative compliance costs.

1.1. Eligible Taxpayers
 
To benefit from the new regime, all of the following conditions must be satisfied:

• The taxpayer must engage in taxi passenger transportation
• The entire turnover must be recorded and documented through the mandatory taxi fiscal device without using electronic fare collection systems; and
• The taxpayer must submit an application requesting to benefit from the regime

Accordingly, the regime is not applied automatically, but only upon the taxpayer's election.

1.2. Application Period
 
Taxpayers whose applications are approved may begin applying the turnover-based taxation regime as of the beginning of the calendar year following the application date.

The regime may be applied for a maximum period of three years.
 
1.3. Key Considerations
 
The following points should be taken into account:

• The regime applies exclusively to taxpayers engaged in taxi passenger transportation
• All turnover must be documented through the mandatory taxi fiscal device
• Participation in the regime is voluntary; and
• The regime becomes effective from the beginning of the calendar year following the application and may continue for a maximum of three years

2. Income Tax Exemption for Gains Derived from the Disposal of Commercial Transportation Plates
 
Article 6 of Law No. 7587 introduces Temporary Article 94 to the Income Tax Code, providing an income tax exemption for gains derived from the disposal of commercial transportation plates relating to taxis, shared taxis (dolmuş), minibuses and public service vehicles.

The purpose of the amendment is to exempt gains arising from the disposal of such commercial transportation plates, subject to the conditions specified in the Law.
 
2.1. Eligible Taxpayers
 
The exemption applies to owners of commercial transportation plates used for:

• Taxis
• Shared taxis (dolmuş)
• Minibuses; and
• Public service vehicles

The exemption covers taxpayers whose commercial income is taxed under the actual taxation regime.
 
2.2. Scope of the Exemption
 
Under Temporary Article 94, gains arising from the sale or other disposal of the above-mentioned commercial transportation plates are exempt from income tax.

Accordingly, irrespective of the acquisition date or holding period of the commercial transportation plate, gains derived from its disposal will not be subject to income tax, provided that the statutory conditions are met.
 
2.3. Effective Date
 
The exemption applies to disposals carried out as from the effective date of the Law.

Accordingly, gains derived from the disposal of commercial transportation plates after the Law entered into force will benefit from the income tax exemption under Temporary Article 94.
 
2.4. Key Considerations
 
The following points are noteworthy:

• The exemption applies solely to gains derived from the disposal of commercial transportation plates
• It covers taxis, shared taxis (dolmuş), minibuses and public service vehicles; and
• While the exemption applies to income tax, a parallel VAT exemption has also been introduced under the VAT Code

3. Amendments to the Electronic Tax Notification System
 
Articles 9, 10 and 11 of Law No. 7587 introduce amendments to Article 107/A, repeated Article 257, and Temporary Article 38 of the Tax Procedures Code.

These amendments expand the scope of the electronic tax notification system, broaden the regulatory powers of the Ministry of Treasury and Finance with respect to electronic tax applications and establish transitional rules for existing users.
 
3.1. Amendments to the Electronic Tax Notification System
 
The provisions governing electronic tax notifications under Article 107/A of the Tax Procedures Code have been revised.

The amendment aims to further expand the scope of the electronic tax notification system and enhance the efficiency of notification procedures carried out electronically. In addition, the authority of the Ministry of Treasury and Finance to determine the procedures and principles governing electronic tax notifications has been maintained.
 
3.2. Expansion of the Ministry's Regulatory Authority
 
The amendments to repeated Article 257 broaden the Ministry's authority with respect to electronic documents, electronic records, electronic reporting and other digital tax applications.

Furthermore, certain quantitative authority limits that could previously be increased by up to two times may now be increased by up to five times.
This amendment provides the Ministry with greater flexibility in developing and regulating digital tax administration practices.
 
3.3. Transitional Provisions
 
Temporary Article 38 regulates the transition process for taxpayers already registered in the electronic notification system.

Accordingly, taxpayers who had already been included in the system before the effective date of the Law are not required to submit a new application and may continue using the existing system without interruption.
 
3.4. Key Considerations
 
The following points should be considered:

• Electronic notification remains an essential component of Türkiye's digital tax administration
• The Ministry's authority regarding electronic tax systems has been expanded
• Existing users are not required to re-register; and
• Taxpayers should ensure that their electronic notification details remain up to date

4. Amendments to the VAT Code
 
Articles 17 and 18 of Law No. 7587 introduce two significant amendments to the VAT Code.

These amendments provide a VAT exemption parallel to the newly introduced income tax exemption for the disposal of commercial transportation plates and extend the application period of the VAT exemption under Temporary Article 45.

4.1. VAT Exemption for the Disposal of Commercial Transportation Plates

Article 17 of Law No. 7587 introduces a new paragraph to Article 17(4) of the VAT Code.

Accordingly, disposals of commercial transportation plates benefiting from the income tax exemption under Temporary Article 94 of the Income Tax Code are also exempt from VAT.

As a result, the disposal of commercial transportation plates relating to:

• Taxis
• Shared taxis (dolmuş)
• Minibuses; and
• Public service vehicles

will now benefit from both income tax and VAT exemptions.
 
4.2. Extension of the Application Period under Temporary Article 45 of the VAT Code
 
Article 18 of Law No. 7587 extends the application period of the VAT exemption provided under Temporary Article 45 of the VAT Code.

This temporary provision grants a VAT exemption for supplies of goods and services made as from 1 January 2024 to foreign governmental institutions and organizations in connection with the construction of residential buildings, workplaces, schools, student dormitories, hospitals, places of worship, cultural and arts centres and similar immovable properties to be donated to general budget public administrations under protocols executed between such public administrations and foreign governmental institutions and organizations in disaster areas affected by the earthquakes of 6 February 2023. The exemption also covers the supply of residential units to be donated within the same framework.

Prior to the amendment, this VAT exemption was scheduled to expire on 31 December 2025.

Law No. 7587 extends the application period until 31 December 2028, thereby allowing the VAT exemption to remain available for an additional three years for qualifying supplies and services.

4.3. Key Considerations
 
The following points should be considered:

• The VAT exemption for commercial transportation plate disposals applies in parallel with the corresponding income tax exemption
• Transactions that do not qualify for the income tax exemption will likewise not benefit from the VAT exemption; and
• Extending the application period of Temporary Article 45 until 31 December 2028 is particularly significant for taxpayers benefiting from the relevant VAT incentive

Conclusion

The amendments introduced by Law No. 7587 to the Income Tax Code, the Tax Procedures Code and the VAT Code will have significant implications, particularly for taxpayers operating in specific sectors and those using electronic tax administration systems.

The Law:

• Expands the scope of the turnover-based taxation regime for taxi operators
• Introduces income tax and VAT exemptions for the disposal of commercial transportation plates
• Updates the electronic tax notification system
• Expands the Ministry of Treasury and Finance's authority over electronic tax documentation and digital tax applications; and
• Extends the application period of a temporary VAT incentive

Taxpayers should carefully assess the impact of these amendments on their activities, particularly with respect to eligibility for the turnover-based taxation regime, the new tax exemptions applicable to commercial transportation plates and their compliance obligations under the electronic tax administration framework.