RHQ — Regional Headquarters Setup
Regional Headquarters status under Law No. 7256 and the Presidential Decree, for international groups managing regional operations from Turkey.
Scope
The RHQ regime under Law No. 7256 provides a special tax treatment for international groups using Turkey as a regional management, coordination, reporting and strategic decision-making hub. Two core benefits: personnel income tax exemption and stamp duty exemption. The structure must be designed at incorporation — retrofitting is lengthy and costly.
- Eligibility analysis — group structure (international, presence in at least 5 countries), scope (management, coordination, finance, R&D)
- RHQ application — coordinated through the Presidency Investment Office
- A.Ş. structure preferred — RHQs are typically incorporated as A.Ş. (investor-friendly, share options)
- Personnel income tax exemption filing — under Law No. 7256 Art. 13
- Stamp duty exemption — for contracts within the RHQ scope
- Foreign expert hiring — work permit process expedited
- Activity scope design — regional management for the geography outside Turkey (Middle East, North Africa, Turkic states)
- Capital and operating cost planning — per minimum personnel/expenditure thresholds in the Presidential Decree
- Annual RHQ report — submitted to the Investment Office and the Ministry
- Pillar Two impact — QDMTT calculation (CIT Art. 32/C) where group revenue exceeds €750M
Process
- 01
Strategic analysis
Group structure, scope and the role of the RHQ within it — business case for the Turkish leg.
- 02
Application file
Coordination with the Presidency Investment Office and the Ministry; eligibility + activity plan.
- 03
A.Ş. incorporation
RHQ-status A.Ş. incorporated in parallel — formation and status application proceed jointly.
- 04
Exemption activation
Income tax exemption + stamp duty exemption filings; personnel hiring.
Frequently asked
Who qualifies for RHQ status?
International groups using Turkey as a regional management/coordination/strategic decision hub. Minimum structure: presence in at least 5 countries, decision-making authority in Turkey, regional service delivery. Pure-play sales offices do not qualify.
What is the scope of the income tax exemption?
All personnel salaries in an RHQ are exempt from income tax under Law No. 7256 Art. 13. The stamp duty exemption applies to contracts within the RHQ scope. Social security contributions still apply. The aggregate saving is meaningful at senior management cost levels.
Does Pillar Two affect an RHQ?
Where group revenue exceeds €750M, the Local Minimum Top-up Tax (CIT Art. 32/C) imposes a 15% effective tax floor. The RHQ's low effective tax rate (due to the income tax exemption) can trigger a top-up in the QDMTT calculation. A Pillar Two impact assessment is an inseparable part of RHQ design.