Turkey Increases Exemptions for Foreign Dividends, Raises Export Service Deduction to 100%

Turkey issued Presidential Decree No. 11257, revising tax rules for foreign dividend income and service export deductions.
The minimum ownership threshold for participation exemption on foreign dividends is reduced to 20% for both corporate and individual taxpayers.
Corporate taxpayers now receive an 80% exemption rate on qualifying foreign subsidiary earnings; individuals retain a 50% exemption rate.
The deduction rate for specified service exports is increased to 100%, up from 80%.
Changes apply retroactively to tax periods starting from 1 January 2026.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.