Turkey officially moves to 100% tax deduction for remote workers with foreign clients (now official)

This was recently published in the Resmi Gazete, so it’s no longer just a proposal.

Turkey has had a tax incentive for “export of services” for years (software, design, engineering, etc.), but the key update is:

The deduction rate has been increased to 100%.

What this means in practice:

If you are based in Turkey

And your clients are outside Turkey

And the service is used/consumed abroad

→ The income from those services can be fully deducted from your taxable income (effectively 0% income tax on that portion)

Typical activities that fall under this scope:

Software development

Design / architecture / engineering

Data processing / data analysis

Call center services

Product testing / certification

Bookkeeping / accounting services

Certain education and health services provided to non-residents

A few important nuances (this is where most misunderstand it):

This is not a blanket “0% tax in…