The Revenue Administration has released corporate tax Circular No. 40 on 7th April 2016 regarding the capital increase deduction that specifies that the annual weighted average interest rate is 14.6% for the year 2015. Note that, 50% of the interest amount calculated over the capital increases in cash in capital companies and the part of the capital covered in cash in newly incorporated companies may be deducted from the corporate tax base under article 10(1) (I) of the Corporate Tax Law (Law No. 5520). The interest amount is calculated by using the latest annual weighted average interest rate applied to TRL-denominated commercial loans granted by banks. However, establishments operating in the fields of finance, banking and insurance sectors and public economic enterprises cannot benefit from this deduction right.
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