The guidance updates the tax rules for business-use passenger vehicles and sets limits on deductible expenses and depreciation for the 2025 fiscal year.
Turkey’s Revenue Administration has published an updated guide on the tax treatment of passenger vehicle expenses for the 2025 calendar year.
The guidance, based on amendments introduced by Law No. 7194, outlines rules for deducting costs related to the business or professional use of passenger vehicles.
Key provisions include annual thresholds on deductible lease payments (TRY 37,000 per month), acquisition taxes (TRY 990,000 if expensed), and depreciation (up to TRY 2,100,000 depending on tax inclusion). Running costs such as fuel and maintenance are 70% deductible.
The rules apply to most taxpayers except those in the vehicle leasing or operating sector.
The guide covers acquisition methods, tax accounting, treatment of financial leases, and includes examples and administrative clarifications.
