Türkiye Enacts Omnibus Law No. 7590 Overhauling Motor Vehicle SCT and Introducing Nuclear Energy Tax Incentives

Summary

Türkiye has enacted Law No. 7590, published in the Official Gazette on 31 July 2026, introducing a minimum fixed special consumption tax (SCT) on motor vehicles set at no less than TRY 100,000 for passenger cars and TRY 30,000 for L-category vehicles such as motorcycles, with both amounts adjusted annually by the revaluation rate. [erdem-erdem.av.tr], [en.otonomhaber.com]
A package of VAT, corporate income tax and stamp tax incentives supports investment in the nuclear energy sector, including a VAT refund on non-recoverable construction VAT and a full VAT exemption on machinery and equipment supplied under investment incentive certificates, both applicable until 31 December 2045. [erdem-erdem.av.tr], [alomaliye.com]
Employment support measures are extended, with manufacturing-sector incentives financed from the Unemployment Insurance Fund through 31 December 2028 and a new social security premium deduction for certified tourism accommodation facilities covering May to December 2026, applied retrospectively from the May 2026 period. [erdem-erdem.av.tr]

Extended article

Türkiye has enacted https://www.resmigafazete.gov.tr/, adopted by the Grand National Assembly on 24 July 2026 and published in the Official Gazette No. 33326 on 31 July 2026. The Law spans social security, taxation, employment, tourism and energy, with specific commencement dates set for individual provisions. [erdem-erdem.av.tr], [alomaliye.com]

Overhaul of Special Consumption Tax on Motor Vehicles. The SCT Law now provides for a minimum fixed tax (asgari maktu vergi). The amount may not be set below TRY 100,000 for passenger cars and other vehicles principally designed for the transport of persons, with a lower TRY 30,000 threshold for L-category vehicles including motorcycles. Both figures are adjusted annually by the revaluation rate under the Tax Procedure Law. T-category tractors are excluded, as are L-category vehicles with an internal combustion engine and electric L-category vehicles below 4 kW; electric L-category vehicles of 4 kW or more fall within scope. Beyond engine cylinder capacity, the calculation may now reflect traction system, range, battery capacity, emission type and value, body structure and passenger or load capacity. The President may differentiate the amounts by these criteria, reduce them to zero, or increase them up to tenfold. [en.otonomhaber.com], [erdem-erdem.av.tr]

Nuclear energy incentives. A provisional article added to the VAT Law allows holders of preliminary licences or licences for nuclear electricity generation to claim a refund of VAT incurred on related construction work that cannot be recovered through the ordinary deduction mechanism within 6-month periods. Deliveries of machinery and equipment under investment incentive certificates for nuclear projects are fully VAT-exempt. Both VAT measures apply until 31 December 2045 and take effect on 1 August 2026. Corporate income tax on qualifying nuclear institutions’ borrowings from banks and similar credit institutions is capped at 25% until 31 December 2045 (financing from related parties excluded), extendable by the President for up to 5 years and applicable to earnings in taxation periods beginning on or after 1 January 2026. A stamp tax exemption covers papers and contracts connected with nuclear energy investments, effective from the date of publication. [alomaliye.com], [erdem-erdem.av.tr]

Employment and social security support. Amendments to the Unemployment Insurance Law (Law No. 4447) extend manufacturing-sector employment incentives for 2025, 2026 and 2027, with the financing window from the Unemployment Insurance Fund extended from 31 December 2026 to 31 December 2028. A new premium support measure applies to private-sector accommodation facilities holding a tourism operation certificate: for May to December 2026, an amount calculated by reference to insured employees’ premium payment days is deducted from employer SGK premiums and met from the Fund. Employers with outstanding premiums or penalty debts qualify only if those debts are restructured. The tourism measure applies retrospectively from the May 2026 period. [erdem-erdem.av.tr]

The full text of the Law (Turkish only) is available online. [alomaliye.com]