The Turkish Revenue Administration has published guidelines regarding corporate income tax (CIT) incentive on 30th June 2016 for capital increase. According to that incentive, capital companies may able to deduct 50% of the interest calculated over the cash capital increases from the corporate tax base. The guidelines covers the following explanations:

  • the incentive process for computing the reduction
  • the registration of capital growths;
  • the definition of “investment period”; and
  • the rank of income obtained from other activities for the computation of incentive.