A Presidential Decree No. 1.435 changes the Income Tax Law has released in official Gazette No. 6.152 of 18^th November 2014 and applies to the taxable periods that start from 1^st January 2015. The major amendments to the corporate income tax are given below:

(a) Removal of exemptions

The taxpayers who are cooperatives, professional or gremial associations, universities and educational institutions and non-profit institutions devoted to activities such as: religion, arts, science, environment, technology, culture, and sport; no longer get exemptions from income tax.

(b) Deductions

The destruction or write-off of fixed assets expenses for the sale purpose are non-deductible and are deductible given the criteria established in article 27-6 of the Income Tax Law (ITL) are satisfied. Salaries, wages and similar remunerations are deductible given the taxpayer has fulfilled with social security and withholding responsibilities.

(c) Net operating losses

Operating losses may be carried forward for 3 years to be compensated against taxable profits and losses derived from adjustments for inflation may no longer be carried forward though previously it was 1 year. According to the article 55 of the Income Tax Law, losses to be offset cannot cross over 25% of the taxable income of the period.

(d) Tax inflation adjustments

In accordance with the article 173 of the Income Tax Law, Banks, financial institutions, insurance and reassurance companies are not consider as the tax inflation adjustments system.

(e) Tax rate

The executive branch is granted optional powers to amend the tax rates given it does so within the limits established in the law.