Recent Developments
With Presidential Decree No. 10767 (“Presidential Decree”), published in the Official Gazette dated 25 December 2025 and numbered 33118, the digital services tax rate applied to digital service providers has been reduced.
What Does the Rate Change Mean?
Under Law No. 7194 on Digital Services Tax and Amendments to Certain Laws and Decree Law No. 375 (“Law No. 7194”), the digital services tax rate, which has been applied at 7.5%, will be reduced to 5% as of 1 January 2026, and to 2.5% as of 1 January 2027, according to the Presidential Decree. The relevant Presidential Decree entered into force on 25 December 2025, to be applied to revenues generated as of 1 January 2026.
Conclusion
This gradual reduction in the digital services tax rate is expected to decrease the tax burden for digital service providers, who are liable for the tax, in the upcoming periods. It would be advisable for digital services taxpayers to review their budgeting and pricing structures, particularly considering the new rates that will apply to revenues generated as of 1 January 2026 and thereafter
