Game development companies operating in Türkiye are subject to standard corporate tax and value added tax (VAT) like other incorporated entities.

As of 2025:

Corporate tax rate: 25%

VAT rate: 20%

Domestic sales of games and software are taxed at these standard rates. However, significant tax advantages apply to companies engaged in software and digital game export activities.

Tax Advantages for Software and Game Exports

Türkiye provides major tax benefits for companies earning revenue from exports of software and digital games:

• No VAT applies to export transactions, as they are fully exempt.
• 80% of the export-related profit is exempt from corporate tax.
• The remaining 20% portion of the profit is taxed at a reduced 20% corporate tax rate instead of 25%.

This framework substantially reduces the tax burden and enhances the international competitiveness of Turkish game development companies.

Technoparks: The Strongest Tax Advantage for Game Studios

Technoparks are designated innovation zones established to support R&D, software development, and design projects. For game companies, operating within a Technopark offers the most comprehensive financial benefits.

Within Technoparks:

• Revenue generated from software and R&D projects is fully exempt from corporate tax.
• Software sales are exempt from VAT.
• Employee salaries are not subject to income tax.
• Employers pay reduced social security contributions for personnel.

For fast-growing game studios and startups with high staffing costs, Technoparks provide the most advantageous tax structure in Türkiye.

State Incentives and Grant Programs for the Game Industry

In addition to tax exemptions, multiple public institutions offer financial support and grant schemes for digital gaming and software companies, including:

• TÜBİTAK
• KOSGEB
• Ministry of Industry and Technology
• Ministry of Trade

These institutions provide:

• R&D funding,
• Grant-based project support,
• Interest-free credit programs,
• Personnel and development subsidies.

As eligibility criteria and funding limits are updated periodically, companies should closely monitor application opportunities.

Conclusion: Reduced Costs with the Right Structure

Game companies operating in Türkiye can significantly reduce operational costs by properly utilizing the 2025 tax framework:

• Export-based tax advantages,
• Technopark exemptions,
• Public grant and incentive programs.

When combined strategically, these mechanisms create a strong and sustainable competitive advantage for game developers in the Turkish market and abroad.