2022 Corporate Tax Law Amendments: 4 Articles and Highlights

On January 13, just in the second week of 2022, a bill was submitted to the Grand National Assembly of Turkey regarding amendments to the Tax Procedure Law and the Corporate Tax Law. This amendment proposal, which included 4 articles, became law and became valid by being published in the Official Gazette as of January 29, 2022.

In this article, we tried to examine what the amendments to the corporate tax law are and what the 4 articles change. If you are wondering what the corporate tax law contains with its amendments and additions, continue to review our article.

Inflation Adjustments Postponed to the End of 2023! – Corporate Tax Law 2022

As stated in the Tax Procedure Law, under normal circumstances, financial tables must be subject to inflation adjustment during the accounting period. The information gap created by this practice, which has not been implemented since 2004, was being tried to be compensated. However, since it is difficult for businesses going through a difficult process under pandemic conditions to detect inflation adjustments and make the necessary arrangements during this process and there is very little time left until the end of the accounting period, it was decided to postpone the application until 31.12.2023.

However, businesses must implement the inflation adjustment application until this date regardless of whether the inflation adjustment conditions are met or not. Apart from this, let us immediately state that there are other issues that have been changed in the corporate tax law. In particular, conversion to Turkish Lira has become the main topic of these changes.

Conversion Rate Exceptions Added to the Corporate Tax Law! – Exceptions Added to the Corporate Tax Law

One of the notable issues among the changes in the corporate tax law is the exceptions made to support the conversion to Turkish Lira and participation accounts. Accordingly;

• Foreign exchange rate gains between 01.10.2021 and 31.12.2021 are exempt from corporate tax.
• Similarly, in the IV. exchange rate difference, interest and dividend gains of accounts converted to Turkish Lira until the submission date of declarations for the provisional tax period are also not within the scope of corporate tax.
• In addition, in order to support the conversion to Turkish Lira deposit and participation accounts in 2022, the conversion of foreign currencies into Turkish Lira within the scope of the conversion rate, interest and dividend gains are also excluded from corporate tax.
• Finally, the conversion of gold account balances into Turkish Lira in 2022, interest and dividend gains are also among the other issues exempted from corporate tax.

Exchange Rate Difference Losses Will Be Deducted from Corporate Tax! – Amendment to the Corporate Tax Law

In addition, in this application made to encourage taxpayers to convert to Turkish Lira, they are also prevented from incurring losses by converting their foreign exchange or gold accounts into Turkish Lira. In the event of a possible depreciation in the Turkish Lira, the loss incurred will be included in the corporate tax as a negative, thus ensuring that the taxpayer is not affected by the loss arising from the exchange rate difference.

These changes, which came with Law No. 7352 published on January 29, were designed to encourage taxpayers to conduct transactions in Turkish Lira and to prevent them from incurring losses in the process. You can access the original text of the decision in the Official Gazette at heredan