A 9% Corporate Tax Rate for Manufacturing Exporters: A Strong Signal to the Real Economy

Article 8 is one of the strongest provisions of the proposal for production and exports.

Under the proposal, manufacturing companies directly exporting the goods they produce would be taxed at 9% on profits derived from such exports. Other exporting companies would be taxed at 14% on profits exclusively generated from export activities.

These rates show that Türkiye wants to give special support to foreign-currency-generating activities.

For manufacturing exporters, the 9% rate is a particularly strong incentive.

The measure aims to support:

• production,

• employment,

• exports,

• and the external trade balance

at the same time.

In practice, however, profit segregation will be crucial. Which income is export-related? How will shared expenses be allocated? How will indirect exports be documented?

The benefit is significant, but accounting discipline, documentation and transfer pricing will become just as important.