“General Communiqué of Law No. 7440 on Restructuring of Taxes and Some Other Receivables” prepared by the Ministry of Treasury and Finance Revenue Administration was published in the Official Gazette and entered into force.

Accordingly, with the Law No. 7440 on Restructuring Some Receivables and Amending Certain Laws, a one-time additional corporate tax was introduced.

With the communiqué, the principles for the application of the additional tax were determined, and detailed explanation and sample applications were also included in the communiqué.

Additional tax will be taken from the corporate tax return to be submitted in 2022, corporate taxpayers will pay this tax, income taxpayers will not pay additional taxes.

Corporate taxpayers in 11 provinces and 1 district affected by the earthquake, which was declared force majeure, will not pay additional taxes.

In accordance with the regulations in the Corporate Tax Law and some other laws, corporate taxpayers can make their exemptions and deductions subject to deduction in the determination of the net corporate income on the declaration.


It is expected to affect around 20,000 taxpayers

The regulation is expected to affect around 20 thousand taxpayers who have exemptions and reductions in 2022 corporate tax. The additional tax will be calculated as 10 percent over the discount and exception amounts in the 2022 corporate tax return.

The exceptions included in the scope will be items such as participation gains exemption, immovable and participation share sales income exemption, earnings exemptions obtained from abroad and meeting certain conditions, free zone and technology development zone earnings exemptions.

Among the discounts, investment, R&D, cash capital discounts were included in the scope.

Within the scope of Article 32/A of the Corporate Tax Law, an additional 10 percent tax will be charged on the base subject to reduced corporate tax.

With the exception of affiliate earnings, the additional tax will be calculated as 5 percent for the exempt income obtained from abroad and carrying a 15 percent tax burden.

For taxpayers who are assigned a special accounting period, additional tax will be calculated over the discount, exemption and reduced corporate tax bases taken into account in the corporate tax returns required for the accounting period that will end in 2023.


The calculated tax will be paid in two installments.

The calculated additional tax will be paid in two installments in August, the first installment within the corporate tax payment period in April, and the second in the fourth month following this period, in August.

No additional tax will be charged on R&D and design discounts and technocity earnings of micro and small businesses.

While R&D deduction amounts and technopolis earnings exemption amounts were also within the scope of additional tax, these discounts and exemptions of approximately 3 thousand R&D and technology companies, defined as new entrepreneurs and developing, micro and small enterprises, were excluded from the scope of additional tax.

Exemption earnings of mutual funds and partnerships, including venture capital funds, are excluded from the scope of additional tax.

All earnings of investment funds and partnerships, which are important for the development of capital markets and entrepreneurship ecosystem, are exempt from corporate tax, while earnings of these funds and partnerships are also excluded from the scope of additional tax.

According to Article 325/A of the Tax Procedure Law, the funds allocated for investing in venture capital funds or partnerships can be deducted from the corporate income. These amounts deducted from the tax base are also excluded from the scope of additional tax.

Currency-protected deposit accounts and donations and aids will not be subject to additional tax. Exemption amounts applied to income from currency protected deposit accounts, exemption amounts related to gains arising from sale-lease-repurchase transactions with financial leasing companies and asset leasing companies, risturn exemption amounts benefited by cooperatives, all kinds of donations and aids, and additional tax on sponsorship expenditures. will not be accepted.

The amounts shown in the declaration but not included in the scope of deduction and exemption due to their nature will not be included in the scope of additional tax.

The valuation differences between the Turkish Accounting Standards/Turkish Financial Reporting Standards and the Tax Procedural Law, which are shown in the “Other discounts and exceptions” lines in the declaration, foreign exchange gains arising from the appreciation of the Turkish lira in borrowings accepted as disguised capital, cancellation of severance pay provision, etc. No additional tax will be calculated on the amounts.

In accordance with the double taxation avoidance agreements and other bilateral or multilateral international agreements, no additional tax will be levied on the earnings exempted from corporate tax. In the liquidation, merger, transfer and full division transactions, no additional tax will be applied to the declarations submitted before 12 March 2023.

Due to the liquidation, merger, transfer and full division transactions, no additional tax will be calculated on the taxpayers’ tax returns, which they have benefited from in the declarations they have submitted before the publication date of the Law, 12 March 2023, for the year 2022.

Those who do not show their exceptions and discounts in their declarations and who report incompletely will pay the additional tax with penalty. Eligible exceptions and deductions will need to be shown in the declaration.

Additional tax accrued incompletely due to discounts and exceptions that are not shown in the declaration or that are not included in the discounts/exceptions lines although shown in the declaration will be collected with tax loss penalty and delay interest.

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