July marks not only the start of the second half of the year but also one of the busiest periods on the tax calendar. This month is of great importance in terms of evaluating the first six months of 2026, conducting strategic planning for the upcoming period, and fulfilling legal obligations on time. From a consulting perspective, there are several critical issues that businesses and individual taxpayers should pay attention to in July.
The Most Important Agenda Item for July 2026: Tax Holiday
The tax holiday, which will be in effect from July 1–20, 2026, stands out as the most significant regulation directly affecting tax return filing and payment deadlines. Implemented annually under Law No. 5604, this holiday period provides convenience for tax professionals and taxpayers while also resulting in the deferral of many tax obligations.
Due to the fiscal holiday, the deadlines for many June-related returns and payments have been extended. The June 2026 VAT return and payment have been postponed to July 28, while the summary and social security contribution return has been postponed to July 27. To avoid missing these deadlines and facing penalties, it is essential to closely monitor the updated calendar.
Second Installment Payments for Income Tax
Annual income tax returns for the 2025 calendar year were filed between March 1 and March 31, 2026. While the first installment of the income tax assessed based on these returns, along with stamp tax, was paid on March 31, the deadline for the second installment has been set for July 31, 2026. This date is of critical importance for property owners receiving rental income, those with business profits, and other income tax payers. Failure to make the second installment payment on time will inevitably result in late payment penalties and fines.
Critical Dates for Provisional Tax and VAT Returns
As we enter the second half of the year, provisional tax and VAT returns are among the most important obligations businesses must prioritize. The deadline for the Second-Period Provisional Tax Return has been updated to July 28, 2026, due to the fiscal holiday. It should be noted that this tax, calculated on gross income from January 1 to June 30, 2026, will be offset against the final tax return at the end of the year.
The second-period VAT return also covers the month of June, and the filing and payment deadline has been extended to July 28. The systematic recording of VAT-subject sales and purchases during the first half of the year is crucial for the accurate preparation of this return. As of 2026, the general VAT rate is 20%, while different rates apply to goods and services such as food, basic necessities, and housing.
Motor Vehicle Tax and Other Obligations
The deadline for the second installment of the Motor Vehicle Tax (MTV) has also been set as July 31, 2026. Vehicle owners should not neglect this payment to avoid potential seizure and enforcement proceedings. In addition, tax returns for the lodging tax and the digital services tax—which affect the tourism sector—must also be filed by the updated deadlines following the tax holiday.
The fundamental rule for successful tax planning is to interpret the calendar correctly and fulfill obligations on time. It is crucial not to miss the postponements resulting from the fiscal holiday, to ensure second-installment payments are made on time, and to adjust cash flow planning for the second half of the year accordingly. Proper planning during this period of the year will minimize unexpected tax burdens that may arise at year-end.
For detailed information on this topic and tax planning strategies tailored to your business, please contact the expert team at Bu Müşavirlik. We are here to help you fulfill your July tax obligations on time and correctly.
