For young individuals who want to start their own business, bring innovative ideas to life, or earn freelance income in the digital economy, the biggest psychological barrier is often taxation and accounting costs. However, the government offers a powerful incentive package to encourage entrepreneurship and reduce informal economic activity: the Young Entrepreneur Tax Exemption. If you are under 29 and establishing a sole proprietorship for the first time, this incentive can significantly reduce your startup costs. So what does this support package include, and who is eligible?

1 Year Free Social Security (Bağ-Kur) Support

Once you establish a sole proprietorship, you are generally required to pay monthly social security contributions (Bağ-Kur / 4B) unless you are employed under another social security scheme. In the early stages of your business, when revenue is uncertain, this fixed cost can be a significant burden. However, if you qualify for the Young Entrepreneur Tax Exemption, your Bağ-Kur contributions are fully covered by the state for 12 months starting from your business registration date. This represents a substantial financial relief, saving tens of thousands in startup costs.

3-Year Income Tax Exemption

The social security support is only part of the benefit; the main advantage lies in taxation. For three consecutive tax periods (three full years), a portion of your business income up to a legally defined threshold is exempt from income tax. In practice, this means that as long as your earnings remain below this limit, you will not pay income tax on your business profits. This is especially beneficial for freelancers, software developers, designers, e-commerce sellers (Trendyol, Amazon, etc.), and digital service providers, as it directly increases net profitability.

Eligibility Requirements

To benefit from this valuable incentive, you must meet the following legal conditions:

• Be at least 18 years old and under 29 at the time of business registration.
• Be registering a business for the first time and not have previously held a tax registration for commercial, agricultural, or professional income.
• Submit your business commencement notification on time and in full compliance with tax office procedures.
• Actively manage and operate the business yourself.
• If acquiring an existing business, it must not be transferred from a spouse or close relatives within the defined legal degree of kinship.

How to Avoid Missing Out on This Opportunity

The Young Entrepreneur Tax Exemption may be overlooked in standard online business registration processes, or incorrectly applied due to procedural errors, leading to loss of benefits. To fully benefit from these incentives, it is essential to ensure proper documentation and accurate submission to the tax authorities. Working with an experienced digital CPA ensures that your application is correctly processed and that your social security and tax exemptions are applied without delay. While you focus on building your business, we ensure you take full advantage of every financial incentive available to you.