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.
Related Posts
Turkey: Revenue Administration publishes guidance on foreign income exemption
Turkey’s Revenue Administration published a guidance on 7 September 2026 outlining a 20-year income tax exemption for
Read MoreTurkey expands tax exemptions to other banks
Turkey has expanded the scope of tax, duty, and fee exemptions applicable to foreign exchange-earning activities by
Read More
Turkey raises withholding tax on money market funds
Turkey’s Revenue Administration has announced that Presidential Decision No. 11734, published in the Official Gazette
Read MoreTurkey: Revenue Administration updates tax penalty reduction guide
Turkey’s Revenue Administration has updated and published the Guide on the Tax Penalty Reduction Application,
Read More
Turkey introduces nuclear energy tax exemptions, establishes vehicle excise floors
Turkey has enacted Law No. 7590, introducing several tax measures, including reforms to the special consumption tax
Read MoreTurkey updates import inspection list for selected products under Agriculture, forestry controls
Turkey has revised the product list covered by the Communiqué on Import Inspections of Products Subject to the Control
Read More