Calculator
Service Export Earnings Deduction Calculator
Where the conditions are met, the entire earnings from services rendered abroad can be deducted from the tax base — Presidential Decree No. 11257 raised the rate from 80% to 100% for periods beginning 1 January 2026. The deduction is computed on the earnings attributable to that activity, not on revenue: directly attributable costs go wholly to the exempt column, general administrative expenses are apportioned by the revenue ratio, and non-operating items such as FX and financing stay outside the qualifying earnings. This calculator builds that split step by step and reconciles the result against period profit.
Revenue
Only revenue from services that fall within the deduction (account group 601, foreign sales).
Domestic sales, government support payments and any other income outside the deduction (group 602).
Costs
Costs incurred solely for the exported service and traceable to it (typically 631 — selling, marketing and distribution). Charged wholly to the exempt column.
Overheads serving both activities (632). Split between the exempt and non-exempt columns in proportion to the foreign revenue ratio.
Non-operating items
FX gains and losses, interest and securities income, financing costs (645, 646, 656, 660). Enter a negative figure if expenses exceed income. These stay outside the qualifying earnings.
Rates
For qualifying services the entire earnings may be deducted — Corporate Tax Law art. 10/1-ğ for companies, Income Tax Law art. 89/13 for individuals. Presidential Decree No. 11257, published in the Official Gazette of 30 April 2026, raised the rate from 80% to 100%, applicable to tax periods beginning on or after 1 January 2026. Enter 80% for earlier periods.
The corporate tax rate (25%) for a capital company. For individuals income tax is progressive, so enter your effective rate — the result is an approximation.
This calculator produces an estimate for general information only and is not a substitute for professional advice. Rates are pre-set to 2026 legislation and can be edited. Which rule actually governs your situation needs separate assessment.
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What this number shows
The deduction applies to earnings, not turnover. What counts is the profit left from that activity, not the total you invoiced abroad. That one sentence explains why the calculator may surprise you: even a company with high foreign revenue can end up with a small deduction, or none.
The rate was raised by a 2026 regulation. But a high rate does not mean there is something to deduct; a high rate multiplied by zero is still zero. What decides the outcome is not the rate but how the qualifying earnings are computed.
The cost split decides the result
The cost side is the calculator’s critical input. Costs fall into three groups: those relating only to the foreign activity, those relating only to domestic activity, and shared administrative costs serving both.
The first two go straight into their own column. The third is apportioned by the foreign revenue ratio. Rent, accounting and management salaries can put more than half of themselves into the foreign column and pull the qualifying earnings down.
So entering only direct costs and leaving shared costs blank shows a deduction that does not exist. For a meaningful result, enter the administrative costs too.
A number is not enough; the conditions must hold
The calculator does the arithmetic, not the eligibility. To use the deduction the service must have been supplied to a customer abroad, used abroad, and the earnings must reach Turkey by the filing deadline.
The second condition causes the most argument. The test runs on the individual customer relationship, not the product. The same product can satisfy it for a customer abroad and fail it for one in Turkey. That is why the split has to be built customer by customer.
The third is often missed by companies using payment providers. A balance sitting with Stripe, Payoneer or similar has not reached Turkey, and that puts the deduction on that portion at risk.
If the result comes out at zero
The deduction arises only if the qualifying earnings are positive. If the split produces a loss on the foreign activity, no deduction arises for that period. This is the most common outcome for companies with large foreign revenue, and it is usually not a mistake but the natural result of the cost structure.
When it happens, the thing to check is not the deduction but whether the cost split was built correctly. A cost treated as shared that actually belongs to the domestic side is sitting in the wrong column.
Frequently asked
- Does the service export deduction apply to turnover or earnings?
- To earnings. It is computed on the profit arising from the service supplied abroad, not on revenue. A company with high foreign revenue but equally high costs attributable to it can end up with small qualifying earnings, or none.
- How are shared administrative costs apportioned?
- By the ratio of foreign revenue to total revenue. The ratio is computed on revenue lines only; non-operating income is excluded. That ratio sets the share of shared costs falling into the exempt column.
- How does the repatriation condition work?
- The earnings must be transferred to Turkey by the annual filing deadline. Under a subscription or platform-collection model this needs tracking during the year; a balance left with the payment provider puts the deduction on that portion at risk.
- In a mixed-customer company, what is the split based on?
- Customer by customer, not product by product. The “used abroad” condition attaches to the individual customer relationship. The same product can produce different outcomes for different customers, so the records have to be built on a per-customer basis.