Software developers, designers, architects, engineers, game developers, mobile app developers, data analysts, freelancers, and remote workers providing services to clients abroad can now benefit from a tax-free period.
To take advantage of tax exemptions available under service exports, it is highly recommended to review factors such as the scope of activities, NACE code, contract structure, invoicing procedures, and whether the service is utilized abroad.
Today, the number of software developers, designers, SaaS entrepreneurs, and digital service providers working remotely or freelance for foreign clients is growing rapidly. Thanks to the opportunity to earn income in foreign currencies, many professionals generate significant revenue by providing services from Türkiye to clients abroad.
One of the most important tax advantages available in Türkiye for software developers, SaaS entrepreneurs, mobile application developers, game developers, designers, and digital service providers is the service export tax exemption.
Provided certain conditions are met, both individual income taxpayers and corporate taxpayers may benefit from tax exemptions of up to 100% on income generated from services provided abroad.
However, many people mistakenly believe that simply issuing an invoice to a foreign client is sufficient. In reality, factors such as business activity, contract structure, NACE code, nature of the service, and accounting infrastructure are also critical.
Types of Services Eligible for the Service Export Tax Exemption
Services provided from Türkiye and utilized abroad may qualify as service exports. Examples include:
- Architecture
- Engineering
- Design
- Software development
- Medical reporting
- Bookkeeping and accounting services
- Call center services
- Product testing
- Certification services
- Data storage
- Data processing
- Data analytics
This exemption can provide significant tax advantages, particularly for individual and corporate taxpayers operating in software, technology, and digital service sectors.
Basic Requirements for a 100% Exemption
1. The Service Must Be Provided to a Foreign Client
The client receiving the service must be an individual or company resident outside Türkiye.
2. The Service Must Be Utilized Abroad
This is one of the most important conditions.
If the outcome of the service is used within Türkiye, the service export exemption may be at risk.
Examples requiring special evaluation include:
- Services related to operations in Türkiye
- Projects targeting the Turkish market
- Consulting services utilized in Türkiye
3. The Provider Must Be Subject to Income Tax or Corporate Tax
To benefit from the service export exemption, the activity must be conducted officially through a registered sole proprietorship or corporate entity.
4. Choosing the Correct NACE Code Is Essential
One of the most common mistakes is operating under an incorrect activity code. Tax audits often begin with NACE code reviews. The tax administration can easily identify inconsistencies through cross-checks between registered activity codes and declared tax exemptions.
5. Invoices Must Be Issued Correctly
Issuing an invoice alone is not sufficient.
- The invoice should clearly include:
- Accurate service descriptions
- Complete client information
- Detailed explanation of the service provided
- Relevant tax exemption provisions
6. Contract Structure Is Critically Important
In practice, many software development companies use contracts labeled as “consulting services.”
However, activities such as:
- Consulting
- Intermediary services
- Marketing
- Representation services
may be evaluated differently under service export regulations.
For example, software development agreements may qualify for the exemption, while software consulting agreements may not. Therefore, it is highly recommended to have your accountant review whether your contracts comply with the requirements of the tax exemption before beginning operations.
Another frequently overlooked issue is including a clause stating that the service will not be used in Türkiye. As required by the exemption rules, the service must be utilized outside Türkiye.
7. Income and Costs Must Be Tracked Separately in Accounting Records
Benefiting from service export incentives requires more than simply issuing invoices. Accounting records must also be structured correctly.
Many tax incentives and exemptions depend on the proper tracking and allocation of revenues and costs.
8. Payments Must Be Properly Documented
To qualify for the exemption, payments must be transferred to Türkiye.
All income must be received in a Turkish bank account by the annual tax return filing deadline.
Who Can Benefit?
The exemption may be available to:
- Freelance Software Developers
- Remote Developers
- SaaS Entrepreneurs
- Game Developers
- Mobile Application Developers
- Artificial Intelligence (AI) Tool Developers
- Designers
- Architects and Engineers
- Data Analysts
What Is the Current Tax Rate for 2026?
Under Presidential Decree No. 11257, published in the Official Gazette on April 30, 2026, the deduction rate for income derived from services such as software development, design, and data analysis provided abroad was increased from 80% to 100%.
This historic change applies to income earned from January 1, 2026 onward. As a result, developers and companies meeting the necessary requirements may now benefit from a full tax exemption (zero tax) on qualifying income.
The Biggest Misconception
Many people believe:
“I should avoid issuing invoices so that I won’t have to pay taxes.”
In reality, this approach may cause them to miss out on significant tax advantages.
When structured properly, it is often far safer and more beneficial to:
- Operate legally
- Keep income properly documented
- Benefit from the service export tax exemption ** Does the Exemption Apply to Income Earned Through Upwork, Fiverr, or Freelancer?**
Yes.
Even if work is obtained through intermediary platforms, you may benefit from the 100% service export exemption provided that:
**The end client is located abroad, and
The payment is transferred to your Turkish bank accoun**t.
Are Taxes Payable on App Store or Google Play Revenue?
Mobile application and game developers may apply the 100% income exemption to foreign currency revenues earned through Apple App Store or Google Play, provided the funds are transferred to Türkiye.
Do Payments Received Through Deel, Wise, or Payoneer Affect Eligibility?
This is one of the most critical issues.
To benefit from the exemption, foreign currency earnings must be physically transferred to a Turkish bank account by the annual tax return filing deadline.
Funds held in Wise or Payoneer accounts do not qualify until they are transferred to a Turkish bank account.
Additionally, contracts processed through Deel should be structured as “Software Development” or “Design Services” rather than “Consulting Services.”
Conclusion
The service export tax exemption provides significant advantages for both individual and corporate taxpayers offering services abroad.
However, issuing invoices to foreign clients alone is not sufficient. Proper NACE codes, correctly structured contracts, compliant invoicing, separate accounting of revenues and costs, and proof that the service is genuinely utilized outside Türkiye are all crucial requirements.
For professionals operating in software development, SaaS, data analytics, design, engineering, and other digital service sectors, careful planning with professional guidance can help reduce future tax risks while maximizing available tax benefits.
If you have further questions about this article you can contact us via WhatsApp or info@nova360.org.tr
You can read this article: https://www.nova360.org.tr/blog/yurtdisina-hizmet-verenler-icin-vergi-yok--100-vergi-istisna-sartlari-nelerdir
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