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Tax relief for companies in capital increases

A new tax deduction regulation was introduced in capital increases. Published in the 'Resmi Gazete'...

Tax relief for companies in capital increases

In the Corporate Tax General Communiqué published in Resmi Gazete, the aforementioned discount rate will be applied as 75% for the portion of the cash capital increases that are met by the cash brought from abroad.

The Revenue Administration containing regulations parallel to the changes made in the general corporate tax communiqué, the corporate tax law, and other laws was published in Resmi Gazete.

According to the regulation, corporations operating in the finance, banking, and insurance sectors and capital companies, with the exception of state economic enterprises, will be able to benefit from the corporate tax reduction separately for 5 accounting periods, based on July 5, 2022. In the previous application, companies could only benefit from the discount once for each accounting period.

With the regulation, only the fourth temporary taxation period, which is the basis for the calculation of the deduction amount, was changed to the "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% applied to their earnings from selling the goods purchased abroad without being brought to Turkey or by intermediating in the purchase and sale of goods abroad were determined.

Accordingly, in order for institutions to benefit from the discount; The income they have earned within the scope of the above must have been transferred to Turkey until the date when the annual corporate tax return for the accounting period in which they were earned must be submitted. The seller and buyer of the goods related to the intermediary activity must not be in Turkey.

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