The Regulation on Small and Medium-Sized Enterprises ("Regulation") was published in the Official Gazette dated 25 May 2023 and numbered 32201. The Regulation entered into force on the date of its publication.

Through the Regulation, the Regulation on the Definition, Qualifications and Classification of Small and Medium-Sized Enterprises ("Former Regulation"), which was enacted by the Council of Ministers Decree dated 19 October 2005 and numbered 2005/9617, has been repealed and the procedures and principles regarding the definition, qualifications, classification, and implementations of small and medium-sized enterprises ("SME(s)") have been redefined.

Introduced Provisions

• The annual sales revenue and financial balance sheet thresholds for an enterprise to qualify as an SME, micro enterprise, small enterprise and medium-sized enterprise were doubled. The number of employees criteria remained unchanged.
• The dates to be taken as reference while determining the SME qualification and classifications have been explicitly specified. For corporate taxpayers, these dates are determined as the end of the month in which the declaration filing period specified in the Corporate Tax Law numbered 520 is due, and for income taxpayers, this date is set as the end of the month in which the declaration filing period specified in the Income Tax Law numbered 193 is due.
• The procedure for filing a declaration of operation has been simplified.

New SME Definition

The annual sales revenue or financial balance sheet threshold for an enterprise to qualify as an SME has been increased. The Regulation defines an SME as "an enterprise with less than 250 employees and whose annual sales revenue or financial balance sheet does not exceed TRY 500 million ". In the Former Regulation, this threshold was TRY 250 million.

New Micro Enterprise Definition

The annual sales revenue or financial balance sheet threshold for an enterprise to qualify as a micro enterprise has been increased. The Regulation defines a micro-enterprise as "an enterprise with less than 10 employees and whose annual sales revenue or financial balance sheet does not exceed TRY 10 million". In the Former Regulation, this threshold was TRY 5 million.

New Small-Sized Enterprise Definition

The annual sales revenue or financial balance sheet threshold for an enterprise to qualify as a small-sized enterprise has been increased. The Regulation defines a small enterprise as "an enterprise with less than 50 employees and whose annual sales revenue or financial balance sheet does not exceed TRY 100 million". In the Former Regulation, this threshold was TRY 50 million.

New Medium-Sized Enterprise Definition

The annual sales revenue or financial balance sheet threshold for an enterprise to qualify as a medium-sized enterprise has been increased. The Regulation defines a medium-sized enterprise as "an enterprise with fewer than 250 employees and whose annual sales revenue or financial balance sheet does not exceed TRY 500 million". In the Former Regulation, this threshold was TRY 250 million.