75 percent corporate tax deduction for capital increases

The Corporate Tax discount rate will be 75 percent for the part of the money capital increases of capital companies that are satisfied with cash brought from abroad.

The Announcement of the Tax Administration (GİB), which contains rules parallel to the changes made to the general announcement on corporate tax, the law on corporate tax and other laws, was published in today’s edition of the Official Gazette.

In accordance with the regulation, public limited companies that operate in the financial, banking and insurance sectors and capital companies, with the exception of State economic companies, may benefit from the reduction of corporate tax separately for 5 accounting periods. , based on July 5, 2022. In the previous application, companies could only take advantage of the discount once per accounting period.

CHANGED TO ‘ANNUAL ACCOUNT PERIOD’

With the regulation, only the fourth temporary tax period, which is used as the basis for calculating the amount of the deduction, was changed to “annual accounting period”.

With the Communiqué, the conditions required for companies or branches operating in the Istanbul Financial Center to be included in the corporate tax deduction at the rate of 50 percent applied to their profits from selling the goods purchased abroad without bring them to Turkey or through intermediation in the purchases and sales of goods abroad were determined.

Consequently, for institutions to benefit from the discount; The income they have obtained within the scope of the above must have been transferred to Turkey up to the date on which the annual corporate tax return is due for the accounting period in which they were obtained, and the seller and buyer of the goods related to the intermediary activity must not be in Turkey. (Reuters)