If you run a profitable company in Türkiye, part of your taxable profit can be moved into growth investments before tax. This guide explains the 2026 rules, the conditions and a worked example.
A venture capital investment fund (girişim sermayesi yatırım fonu, GSYF) pools capital from qualified investors and invests it mainly in growth companies. It is registered with the Capital Markets Board of Türkiye (CMB) and is established and managed by a licensed portfolio management company.
The fund's assets are held by a custodian, its value is calculated regularly and key information is published on KAP, Türkiye's Public Disclosure Platform. For companies, a GSYF is both an investment vehicle and the gateway to the tax incentives Türkiye offers for venture capital.
| Benefit | Who it is for | Rule | Legal basis |
|---|---|---|---|
| Venture capital reserve deduction | Companies and business-income taxpayers | Up to 10% of declared profit can be set aside and deducted from taxable income. The total reserve cannot exceed 20% of equity. The amount must be invested in a GSYF or GSYO by the end of the year in which it is set aside. | Tax Procedure Law art. 325/A, Corporate Tax Law art. 10/1-g, Income Tax Law art. 89/14 |
| Fund-level exemption | The fund itself | The fund's portfolio income is exempt from corporate tax. The 50% profit distribution requirement introduced for real estate funds by Law No. 7524 does not apply to GSYFs. | Corporate Tax Law art. 5/1-d |
| 0% withholding | Individuals and capital companies | Gains on GSYF units held for more than two years carry 0% withholding (other funds: 17.5%). | Income Tax Law provisional art. 67, Presidential Decree 11107 (27.03.2026) |
| Dividend and redemption exemption | Turkish resident companies | Dividends from GSYF units and gains on redeeming units to the fund are exempt from corporate tax. | Corporate Tax Law art. 5/1-a-3 |
A company declares TRY 50 million of corporate profit for the 2025 tax year; its year-end equity is TRY 100 million.
Figures are illustrative; your result depends on your rate, equity and investment plan. Confirm with your tax adviser before acting.
No reserve can be set aside in a loss year or in quarterly advance tax periods. A reserve not claimed in the annual return cannot be claimed later.
The reserve must be invested in a GSYF or GSYO by year-end (or the end of a special tax period). If units are sold, the amount must be reinvested for the same purpose within six months.
If the investment is not made or the reserve is used for another purpose, the deferred tax is collected with late-payment interest.
The fund must be a GSYF or GSYO established in Türkiye and regulated by the CMB. The two-year withholding period is counted in full years.
Lower the tax bill while keeping capital working in growth investments.
Use the subsidiary's Turkish profits to build a regulated venture portfolio in Türkiye.
Bring group and external venture investments into one supervised, transparent structure.
0% withholding after two years for individuals and simple transfers of units within the family.
An offshore fund does not give a Turkish company the venture capital reserve deduction, and its returns may fall under Turkish controlled-foreign-company and dividend taxation rules. A GSYF keeps the incentive onshore, under CMB supervision, with custody at a Turkish custodian.
FT Portföy is a CMB-licensed real estate and venture capital portfolio management company in Istanbul. We set up GSYFs for companies, prepare the fund bylaws and issuance document, run the CMB process and manage the fund. Türkçe
Yes. GSYF units are sold to qualified investors, and foreign companies and individuals who qualify can invest. Withholding and treaty treatment depend on the investor's country; confirm with a tax adviser.
Yes. In every profitable year a company can set aside up to 10% of declared profit, as long as the total reserve stays within 20% of equity and the amount is invested in time.
Withholding of 0% applies to gains on GSYF units sold or redeemed after two full years from acquisition.
A GSYF's portfolio income is exempt from corporate tax under article 5/1-d of the Corporate Tax Law. The 50% distribution requirement that applies to real estate funds does not apply to GSYFs, so gains can be reinvested inside the fund.
It depends on the fund's structure and the CMB review. Preparing the bylaws and issuance document, the CMB application and custody agreements usually takes a few months; we give a firm timeline after a first call.
Related guides: Real estate investment funds in Turkey · Fund documents: bylaws and issuance document · Venture capital funds · FT Portföy
This page is general information, not an investment offer or investment, tax or legal advice. Tax law can change; please confirm your own position with a tax adviser. Fund units carry risk and their value may go up or down; past performance is not a guarantee of future results.
Sources: KPMG Vergi · Presidential Decree 11107 (Official Gazette 27.03.2026) · Law No. 7524 commentary.
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