The Regulation on the Amendment of the Small and Medium-Sized Enterprises Regulation Has Been Published

The Regulation on the Amendment of the Small and Medium-Sized Enterprises (“SME”) Regulation (“Amendment Regulation”), which introduces changes increasing the financial thresholds related to the annual net sales revenue or balance sheet amount considered in the definition of enterprises under the Regulation of the Small and Medium-Sized Enterprises (“SME Regulation”), was published in the Official Gazette dated 07.08.2025 and numbered 32979.

The regulations introduced under the Amendment Regulation are summarized below for your information.

Increase in the Financial Threshold for the Definition of SMEs

With the Amendment Regulation, the financial threshold related to the annual net sales revenue or balance sheet amount considered in the definition of SMEs within the SME Regulation has been increased from five hundred million Turkish Lira to one billion Turkish Lira.

As a result of this amendment, enterprises with fewer than two hundred fifty employees and whose annual net sales revenue or balance sheet amount does not exceed one billion Turkish Lira will be eligible to benefit from the SME status.

Increase in the Financial Threshold for the Definition of Medium-Sized Enterprises

With the Amendment Regulation, the financial threshold related to the annual net sales revenue or balance sheet amount considered in the definition of “medium-sized enterprises” within the SME Regulation has been increased from five hundred million Turkish Lira to one billion Turkish Lira.

As a result of this amendment, enterprises with fewer than two hundred fifty employees and whose annual net sales revenue or balance sheet amount does not exceed one billion Turkish Lira will be classified as “medium-sized enterprises.”

Legal and Practical Implications of the Regulations Introduced by the Amendment Regulation

Acquisition of SME status enables enterprises to benefit from grant and support programs provided by the Republic of Turkey Small and Medium Enterprises Development Organization, research and development supports offered by the Scientific and Technological Research Council of Turkey, investment incentive certificates, and low-interest loan opportunities backed by guarantees from the Credit Guarantee Fund. Additionally, these enterprises are entitled to certain tax exemptions and reductions, tax deferral applications under the relevant legislation, and enjoy facilitated reporting and compliance obligations. With the increase of the financial thresholds from five hundred million Turkish Lira to one billion Turkish Lira, enterprises that were previously excluded from SME status solely due to exceeding the threshold but remain below one billion Turkish Lira will now re-enter this status and benefit from all the aforementioned advantages.

Medium-sized enterprises, in addition to all the advantages provided by SME status, are also entitled to additional rights specific to medium-scale enterprises, such as benefiting from special quotas allocated in public procurement, accessing higher support rates in investment incentives, and receiving support with higher limits in financing programs. With the increase in financial thresholds, a greater number of enterprises with annual net sales revenue or balance sheet amounts below one billion Turkish Lira will qualify as medium-sized enterprises and benefit from the advantages within this category.

Effective Date