Teknokent 0% Corporate Tax
100% corporate income tax and VAT exemptions on software development revenue inside certified Technology Zones.
RECOMMENDED ENTITY
Limited Liability Company (LLC)
The gold standard for tech companies, angel investment rounds, Teknopark incubation approvals, and developer work permits.
OFFICE REQUIREMENTS
Virtual or Commercial Office
Virtual office initially, or an approved dedicated workspace inside a certified Teknopark.
REQUIRED LICENSES
- Software & IT NACE Activity Commercial Registration
- Electronic Signature (E-İmza) and Tax Verification
- Teknopark Admission Application (for Zone-specific tax exemptions)
- Multi-Currency Corporate Bank Accounts (USD, EUR, GBP)
SECTOR HIGHLIGHTS
Key Operational Strengths
80% Export Service Tax Deduction
Software and IT services billed to international clients outside Turkey qualify for an 80% corporate tax base deduction.
Expedited Work Permits for Developers
Fast-tracked work permit criteria for foreign engineers, product managers, and developers.
TAX INCENTIVES & EXEMPTIONS
Sector Tax Advantages in Turkey
✓ Software Export Profit Deduction
80% tax deduction on taxable profits generated from international software and design contracts.
✓ 0% VAT on International Software Licenses
Full VAT exemption on software licenses and cloud services invoiced to foreign clients.
FORMATION JOURNEY
Ready in 4 Seamless Steps
STEP 01
Tailored IT Articles of Association
Drafting corporate objects to perfectly align with Teknokent requirements and software export tax incentives.
STEP 02
Commercial Registry Incorporation
Registering at the Istanbul Chamber of Commerce and securing official tax identification.
STEP 03
Teknokent & Incentive Structuring
Preparing technology incubation applications and setting up international invoicing workflows.
STEP 04
Banking & Work Permits
Activating corporate international banking and processing founder/developer work permits.
BARUT GROUP / CORPORATE INTELLIGENCE
Which Corporate Entity Fits Your Business?
Compare legal liability, partnership flexibility, and tax structures to choose the ideal business vehicle in Turkey.
Select Your Profile:
Sole Proprietorship
Sole Proprietorship
Fast single-person registered enterprise.
Legal & Financial Liability
Unlimited (Personal assets are fully liable)
Foreign Partner Capacity
Strictly 1 person (Cannot add partners)
Work Permit Feasibility
Restricted and higher scrutiny
Tax Structure
Progressive Income Tax (15% to 40%)
Best Suited For
Freelancers, independent consultants, and early-stage solo e-commerce sellers.
MOST POPULAR FOR FOREIGN INVESTORS
Limited Liability Company (LLC)
Limited Liability (LLC)
The most secure and flexible standard for business and trading.
Legal & Financial Liability
Limited (Protected strictly to company registered capital)
Foreign Partner Capacity
1 to 50 partners (Allows 100% foreign ownership)
Work Permit Feasibility
Optimal (Standard vehicle for investor work permits)
Tax Structure
Flat Corporate Income Tax (25%)
Best Suited For
E-commerce, import/export, tech startups, logistics, consulting, and growth companies.
Joint Stock Company (JSC)
Joint Stock (A.Ş.)
Large-scale capital projects and frictionless share transfers.
Legal & Financial Liability
Limited (Strictly restricted to subscribed shares)
Foreign Partner Capacity
1 person to unlimited shareholders
Work Permit Feasibility
Available for board members and directors
Tax Structure
Flat Corporate Income Tax (25%)
Best Suited For
Industrial manufacturing, investment funds, holding structures, and IPO goals.
FAQ
Frequently Asked Questions
Can a tech company outside Teknoparks still get tax benefits in Turkey?
Yes! Under Turkish tax law, companies that export software, design, or data analytics services to clients abroad enjoy an 80% corporate tax deduction.
SECTOR DIRECTORY
Explore Other Business Sectors
Explore sector-specific tax exemptions, regulatory compliance, and setup requirements in Turkey.