ISTANBUL — Turkey’s Revenue Administration (GİB) has published the list of jurisdictions that will be recognized for the implementation of the Local and Global Minimum Top-up Corporate Tax regime, a key element of the OECD’s global minimum tax framework.

The announcement identifies countries that have introduced qualified domestic minimum top-up taxes and those applying the Income Inclusion Rule (IIR), forming part of the international Pillar Two tax reforms designed to ensure that large multinational enterprises pay a minimum effective corporate tax rate of 15 percent in every jurisdiction where they operate.

The published list is significant for multinational companies operating in Turkey, as it determines which foreign tax regimes will be recognized when calculating top-up tax obligations under Turkey’s Local and Global Minimum Top-up Corporate Tax rules.

Turkey incorporated the global minimum tax framework into its corporate tax legislation in 2024, applying the rules to multinational enterprise groups with consolidated annual revenues exceeding €750 million in at least two of the previous four fiscal years. The detailed implementation framework was later clarified through a General Communiqué issued by the Revenue Administration.

The Revenue Administration noted that the designated jurisdictions will be taken into account in the application of Turkey’s minimum tax regime and related compliance requirements. The measure is intended to align Turkey’s tax system with international standards while reducing opportunities for profit shifting and tax base erosion by multinational corporations.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök