The Turkish government is working on a regulation to further lower corporate tax from the previously set level of 20% for next year, several reports said, in a move to revive the economy in the face of the coronavirus pandemic and encourage companies to boost employment and their turnovers.

The corporate tax will be lowered and applied between 15% and 18%, Turkish broadcaster NTV and Dünya daily said, citing sources.

"Although there is no final decision made yet, there is work going on to reduce corporate tax further, lower than 20%," one of the sources, an official, told Reuters on Thursday.

"Work on implementing a lower rate to SMEs (small- and medium-sized enterprises) and small businesses according to their revenue is at an advanced stage."

The COVID-19 lockdowns brought activity in Turkey to a near standstill, just like other countries around the world. Ankara had shut schools and some businesses, closed borders and adopted weekend stay-home orders after it reported its first COVID-19 case on March 11. The economy was mostly reopened in June.

The turnover criteria is the basis from which the rates are said to be determined depending on the turnover below and above the limit of TL 10 million ($1.26 million).

The related study is expected to be completed soon and signed into law within October, the report by Dünya said.

With an adjustment in 2017, the corporate income tax rate levied on business profits was temporarily increased from 20% to 22% for the periods of 2018, 2019 and 2020.

The three-year application ends on Dec. 31 and the rate will again be applied at 20% for 2021 onward if no change is made.

The corporate tax is levied on the income and earnings derived by corporations and corporate bodies.

Revenues from the corporate tax rate are an important source of income for the Turkish government.

The corporate tax in Turkey averaged 24.5% from 1997 until 2020, reaching an all-time high of 33% in 2000 and a record low of 20% in 2006.