The young entrepreneur income tax exemption in Turkey for 2026 can exclude, from income tax, up to TRY 400,000 of qualifying commercial, agricultural or professional profit of a real person with full tax liability who has not reached age 29 on the start date. That figure is not turnover and not a cash grant. 4/B premium support was abolished; the income tax exemption continues separately under repeated Article 20 of the Income Tax Law.
The term is three tax periods including the calendar year in which activity starts; a December start is not topped up to 36 months. The sections below explain the cap, the age and partnership tests, and the 2026 premium change.
Short answers
- What is the TRY 400,000 limit?
- It is the maximum exempt portion of qualifying commercial, agricultural or professional profit in 2026. It is not turnover, revenue, a tax credit or a cash grant.
- Is there 4/B (Bağ-Kur) premium support in 2026?
- No. Article 81/1-k of Law No. 5510 was repealed with effect from the start of January 2026; there is no Treasury coverage for 2026 premium months.
- What is the age test exactly?
- On the start date the person must have full tax liability in Turkey and must not have reached their 29th birthday. The statute does not add a separate minimum age of 18.
- How long does the exemption apply?
- Three tax periods including the calendar year of commencement. A short first period is not extended to 36 months.
- Can a Ltd. Şti. or A.Ş. use it?
- Corporate income of a Ltd. Şti./A.Ş. is not eligible. The exemption applies to the commercial, agricultural or professional profit of a qualifying individual income taxpayer.
🚨Premium support ended in 2026; the profit exemption continues separately
Article 23 of Law No. 7566 repealed Article 81/1-k of Law No. 5510. Under Article 32/1-ç the repeal takes effect at the beginning of January 2026. There is no transition rule for 2026 premium months.
| Measure | Premium months through 31.12.2025 | 2026 premium months |
|---|---|---|
| Young entrepreneur income tax exemption | ✅ 3 tax periods (2025 cap: TRY 330,000) | ✅ 3 tax periods (2026 cap: TRY 400,000) |
| 4/B young-entrepreneur premium support (5510/81-k) | ✅ Up to 12 months, on the statutory terms, over the minimum contribution base | ❌ Abolished; no Treasury coverage |
Legal basis: Law No. 7566, Arts. 23 and 32/1-ç (OG 19.12.2025/33112)
Unused premium months do not carry into 2026. Ordinary 4/B status or other SGK reductions are not the repealed young-entrepreneur premium support.
1️⃣What does the TRY 400,000 exemption actually mean?
In substance: TRY 400,000 is the maximum portion of qualifying commercial, agricultural or professional profit that may be exempted from income tax in 2026. It is not a turnover cap, a tax credit or a cash grant. The taxpayer is not exempt from every tax.
Assumption: A simplified example with no other income, deductions, prior-year losses or credits. Annual commercial profit is TRY 500,000.
- The first TRY 400,000 of qualifying profit → within the young entrepreneur income tax exemption
- The remaining TRY 100,000 → taxed under the 2026 income tax schedule
Calculation:
In this simplified example with no other income, deductions, prior-year losses or credits, the remaining TRY 100,000 stays in the first 2026 band (15% up to TRY 190,000).
Computed income tax: 100,000 × 15% = TRY 15,000. Actual tax saved depends on profit, aggregation of other income, deductions and the schedule.
- The exemption applies for three tax periods including the calendar year of commencement; it is not topped up to 36 months.
- The annual ceiling follows the second band of Article 103 of the Income Tax Law; for 2026 that amount is TRY 400,000.
- VAT, withholding tax and stamp duty are outside this exemption and continue under their own rules.
- The duty to file remains. Unused exemption does not carry to the following year.
| Year | Exemption ceiling |
|---|---|
| 2024 | TRY 230,000 |
| 2025 | TRY 330,000 |
| 2026 | TRY 400,000 |
| 2027 | Not yet final; it will be updated when that year’s Article 103 schedule is published |
2️⃣Is there 4/B premium support in 2026?
There is no young-entrepreneur 4/B premium support for 2026 premium months
Article 81/1-k of Law No. 5510 was repealed by Article 23 of Law No. 7566. Article 32/1-ç sets the effective date at the beginning of January 2026. There is no carry-over rule for 2026 premium months.
Historical treatment through 31.12.2025
Through premium months ending 31.12.2025 the support applied, on the statutory terms, for up to 12 months over the minimum contribution base.
Historical scope:
- The amount followed that month’s minimum contribution base
- Only for premium months through 31.12.2025, and for up to 12 months
- There is no Treasury coverage for 2026 premium months
Unused months are not carried into 2026; Law No. 7566 has no transition clause.
2026 and after
No new application is made for the repealed young-entrepreneur premium support. The income tax exemption continues separately if the tests in repeated Article 20 are met.
Do not confuse these rules
- Ordinary 4/B (Bağ-Kur) status is not the repealed young-entrepreneur premium support.
- The five-point reduction or other SGK measures are not a continuation of 5510/81-k.
- The young entrepreneur income tax exemption (TRY 400,000 in 2026) applies on its own terms, independently of premiums.
| Year activity started | Income tax exemption | 4/B premium support (5510/81-k) | Outcome |
|---|---|---|---|
| 2025 | 3 tax periods; 2025 cap TRY 330,000, 2026 cap TRY 400,000 | For premium months through 31.12.2025, on the statutory terms and the 12-month limit | No Treasury coverage for 2026 premium months; the profit exemption may continue separately |
| 2026 | 3 tax periods; 2026 cap TRY 400,000 | None | Profit exemption only; actual tax saved depends on profit and the schedule |
3️⃣What if the activity is ceased or its type changes?
A new start does not create a new three-period entitlement; the “first-time taxpayer” test cannot be satisfied again.
Framework in the 2026 GİB leaflet and Communiqué No. 292
Profit earned up to the cessation date may still be covered if the other tests are met. According to GİB, a restart after cessation is treated as a breach of the first-time income-tax registration test. This text is not a binding ruling; the actual facts and taxpayer records must be examined.
Duration and change of activity
- Changing the activity within the three tax periods does not extend the exemption term.
- Starting a further activity while the first one continues also does not extend the term.
- GİB’s leaflet allows use of any remaining term if the type or subject of activity changes during the relief period.
- If the business is converted into a Ltd. Şti. or A.Ş., corporate income is not eligible for this income tax exemption.
Assessment note
Check the records and the current GİB text before deciding:
- Start and cessation dates are read from the tax registration file.
- Whether income tax liability was first created for commercial, agricultural or professional activity is examined separately.
- A change of activity does not extend the term; any remaining period is assessed under the GİB explanation.
- No guarantee can be given unless a binding ruling is obtained.
Period example
- A start in December 2026 covers 2026, 2027 and 2028; the first period is December only and is not topped up to 36 months.
- Profit earned up to cessation may remain within the exemption if the other tests are met.
- A restart after cessation does not, according to GİB, create a new three-period entitlement.
✅Who can qualify?
1. Age test
On the start date the person must have full tax liability in Turkey and must not have reached their 29th birthday. The statute does not set a separate minimum age of 18; the decisive test is that the 29th year of age has not been completed.
- A person who has not yet reached their 29th birthday can meet the age test.
- A person who has already had their 29th birthday fails the age test; not yet being 30 is not enough.
Age is tested on the start / first-registration date. Reaching the 29th birthday later does not, by itself, cut short the three tax periods already running.
2. First income tax registration
- Income tax liability must be created for the first time in that person’s name for commercial, agricultural or professional activity.
- Having held only Ltd. Şti. or A.Ş. shares in the past does not, by itself, mean such an individual income tax registration existed; it is not an automatic refusal ground.
- Profits of a Ltd. Şti. or A.Ş. are subject to corporate tax; corporate income is not eligible. The exemption belongs to the qualifying individual’s commercial, agricultural or professional profit.
3. Personal work or direction of the business
- The person must work in the business in person or personally direct and manage it.
- Employing an apprentice, journeyman or assistant does not break this test.
- Compulsory temporary absences such as travel, illness, military service, detention or imprisonment do not automatically break it.
4. Ordinary partnerships and personal companies
- In an ordinary partnership or a personal company within the meaning of the Income Tax Law, every partner must meet the tests.
- If one partner fails, none of the partners may use this exemption.
“Personal company” here is not the everyday sole proprietorship. In the Income Tax Law it means partnerships such as a collective or limited partnership. A sole proprietorship may still be covered through the individual’s own commercial profit if the other tests are met.
5. Remaining statutory tests
- Commencement must be notified within the statutory time limit.
- Except where the surviving spouse or children take over on death, the business or professional practice must not have been taken over from a spouse or a blood or in-law relative up to the third degree inclusive.
- The person must not later join an existing business or professional practice as a partner.
- On a takeover by the spouse or children after death, they may use the exemption for three tax periods if they themselves meet the tests.
- The exemption does not affect tax withheld under Article 94 of the Income Tax Law.
6. Foreign nationals
A foreign national who has full tax liability in Turkey may also qualify if the other tests in repeated Article 20 are met.
🚀Process (steps that can be verified)
1. Commencement notice
- The start of activity is notified within the statutory time limit.
- A late commencement notice bars the exemption (assessed under the Tax Procedure Law).
2. Registration and activity tests
No separate constitutive certificate is required; the tests in repeated Article 20 must be met:
- First income tax registration for commercial, agricultural or professional profit
- Age, personal work or direction, partnership and transfer tests
- Corporate income is not eligible
3. Application on the return
- The exemption is applied on advance and annual income tax returns under the current return layout.
- The annual ceiling is not multiplied for each advance-tax period; cumulative profit is used.
- An annual return is still filed if there is no profit or profit is below the cap.
4. Inspection or fact-finding
The tax office may carry out an inspection or fact-finding visit if it considers it necessary; a physical visit is not guaranteed. Current GİB guidance does not establish a separate “Young Entrepreneur Exemption Certificate” as a constitutive condition.
5. No 2026 premium-support application
- No new application is filed for the abolished young-entrepreneur 4/B premium support in 2026.
- 4/B insurance and contribution duties are monitored separately in SGK records.
- Do not confuse the income tax exemption with the repealed premium support.
❓Frequently asked questions
If I am also insured under 4/A in another job, can I still use the exemption?
The income tax exemption is a separate question if the tests in repeated Article 20 are met. 4/A employment does not replace the repealed 4/B premium support.
- The profit exemption is applied by reference to commercial, agricultural or professional profit and the other tests.
- There is already no 5510/81-k premium support in 2026.
Do VAT, withholding tax and stamp duty also fall away?
No. The young entrepreneur income tax exemption concerns only income tax on qualifying profit.
- Income tax → exemption up to TRY 400,000 of qualifying profit in 2026
- VAT → continues under its own rules
- Stamp duty → continues under its own rules
- Withholding → this exemption does not affect Article 94 withholding
Does the exemption amount change every year?
The amount follows the second band of that year’s Article 103 schedule; it is not fixed by estimate or by the revaluation rate alone.
- 2024: TRY 230,000
- 2025: TRY 330,000
- 2026: TRY 400,000
- 2027: Not yet final; it will be updated when the 2027 schedule is published
How is it applied in advance-tax periods?
In advance-tax periods the exemption is applied by reference to cumulative profit and the current return layout; the annual ceiling is not multiplied for each period.
- Advance tax is not the annual cap split across periods.
- The annual TRY 400,000 ceiling is not granted again as TRY 400,000 in every advance-tax period.
- A specific 2026 form line name is not stated here because the official screen was not verified.
If premium support started in 2025, does it continue in 2026?
No. Article 23 of Law No. 7566 repealed 5510/81-k; Article 32/1-ç brings that repeal into force at the beginning of January 2026. There is no transition for 2026 premium months.
- There is no Treasury coverage for 2026 premium months.
- The income tax exemption continues separately if its own tests are met.
- Current 4/B contribution duties are checked in the SGK file.
⚠️Common mistakes
Treating TRY 400,000 as turnover or as the tax saved
TRY 400,000 is the maximum profit that may be exempted in 2026; it is not a turnover cap and not a TRY 400,000 tax credit.
Misreading the “has not reached age 29” test
A person who has already had their 29th birthday fails the age test; not yet being 30 is not enough. The statute does not set a minimum age of 18.
Treating three tax periods as 36 months
A start in December 2026 covers 2026, 2027 and 2028; the first period is not topped up to 36 months.
Failing to notify commencement in time
A late commencement notice prevents use of the exemption.
Joining an existing business later, or missing the related-party transfer rule
A later partnership in an existing business bars the exemption. Except on death, a transfer from a spouse or a blood or in-law relative up to the third degree also fails the test.
Confusing the income tax exemption with the repealed premium support
There is no 5510/81-k premium support in 2026. The profit exemption is separate; ordinary 4/B status or other SGK reductions are not a continuation of that support.
Ignoring VAT, withholding and stamp duty
The exemption does not remove every tax. VAT, withholding tax and stamp duty continue under their own rules.
Treating Ltd./A.Ş. shares as an automatic refusal or an automatic right
Corporate income is not eligible. Holding only shares in the past does not automatically refuse the person’s own income tax registration.
🎓Conclusion
In 2026 the young entrepreneur income tax exemption can apply, up to TRY 400,000, to the commercial, agricultural or professional profit of a qualifying individual.
- The 2026 ceiling is a TRY 400,000 profit exemption; the term is three tax periods, not 36 months.
- Actual tax saved depends on profit, aggregation of other income, deductions and the schedule.
- 4/B premium support was abolished for 2026; the profit exemption continues separately.
Points to keep in mind
- Cessation and restart do not create a new three-period entitlement.
- The age test is that the 29th birthday has not been reached; repeated Article 20 does not set a minimum age of 18.
- Corporate income is not eligible; past shareholding is not an automatic refusal.
- 5510/81-k premium support does not apply to 2026 premium months.
Check the current GİB text and the tax registration file before acting.
Sources last checked: 30 August 2026
Legal basis: Income Tax Law No. 193, repeated Article 20; Law No. 7566, Arts. 23 and 32/1-ç
Sources: Revenue Administration 2026 young-entrepreneur leaflet and the 2026 income tax schedule
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