Young entrepreneur tax incentive and social security premium support are applied in Türkiye to encourage entrepreneurship. Under the provisions of the Income Tax Law No. 193 and the Social Insurance and General Health Insurance Law No. 5510, these incentives aim to make it easier for young people to start their business life and strengthen the entrepreneurial ecosystem.
What Is the Young Entrepreneur Tax Incentive?
Since 2016, young individuals who become taxpayers for the first time due to commercial, agricultural, or professional activities can benefit from a tax exemption for a portion of their earnings for three taxation periods.
- Exemption amount for 2024: 230,000 TRY
- Exemption amount for 2025: 330,000 TRY
These amounts are updated annually.
Who Can Benefit from the Tax Incentive?
- Individuals who have established income tax liability for the first time due to commercial, agricultural, or professional activity,
- Full-resident real persons who have not yet turned 29 at the start of their taxpayer registration,
are eligible for the young entrepreneur tax incentive
Main Conditions for the Tax Incentive
Notification of business commencement within the legal time frame,
The entrepreneur must personally work in or actively manage the business,
The business must not have been transferred from a spouse or relatives up to the third degree,
In case of partnerships, all partners must meet the conditions at the start of the activity,
Not having joined an existing business as a partner afterward.
Young Entrepreneur Social Security Premium Support
Since June 1, 2018, under Article 4/1-b of Law No. 5510, the social security premiums of young taxpayers are covered by the Treasury for one year.
- Premiums are calculated based on the minimum earnings subject to premiums,
- Entrepreneurs must obtain the “Young Entrepreneurs Income Exemption Certificate” to benefit,
- If taxpayers benefiting from the income exemption have other taxable income (rent, investment income, salaries, etc.), the incentive only applies to commercial, agricultural, and professional earnings.
Practical Examples
Example 1:
Taxpayer (A) earned 350,000 TRY from self-employment and 130,000 TRY from rental income in 2025. On the annual income tax return, only 330,000 TRY out of the 350,000 TRY self-employment income will be exempt. The 130,000 TRY rental income will not benefit from the exemption.
Example 2:
Taxpayer (B) started an architecture business on 26/2/2024 and a construction business on 22/8/2025. In 2025, the taxpayer earned a total of 1,250,000 TRY:
- Construction activity: 850,000 TRY
- Architecture activity: 400,000 TRY
Only 330,000 TRY of the total will benefit from the exemption.
Example 3 (Business Transfer):
Taxpayer (F), who had been operating a kiosk since 11/5/2018, passed away, and the business was inherited by his 25-year-old son (G). The son (G) will be able to benefit fully from the exemption in 2025, 2026, and 2027.
Key Points in Tax and Premium Incentives
- Entrepreneurs benefiting from the incentive may only deduct from commercial, agricultural, or professional income, even if they have other income such as rental income,
- The incentive period is limited to 3 years. Restarting under the same conditions does not extend the period,
- If a business is terminated and restarted, the “first-time taxpayer” condition is violated,
- In partnerships, all partners must meet the conditions. If one partner fails, others cannot benefit,
- For transferred businesses, the previous owner must not be a spouse or relative up to the third degree.
Can Both Incentives Be Used Together?
Yes ✅ Young entrepreneurs who meet the conditions can benefit from both the income tax exemption and the social security premium support simultaneously. This reduces the tax burden and social security costs.
Conclusion
The young entrepreneur tax incentive and social security premium support are among the most important legal advantages supporting entrepreneurship in Türkiye. It is crucial for young entrepreneurs who wish to benefit from these incentives to make proper notifications at the beginning of their activities and to fully comply with the conditions.
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