Five-Year Limitation on Cash Capital Increase Deduction
With the subparagraph (ı) added to Article 10/1 of the Corporate Tax Law No. 5520 by Law No. 6637 dated March 27, 2015, it was allowed to deduct the amounts calculated over the cash capital increases of capital companies or the cash portion of the paid-in capital of newly established companies.
An amendment was made to this regulation with Law No. 7417, published in the Official Gazette No. 31887 on July 5, 2022.
Accordingly, while previously the deduction could be utilized indefinitely, it will now be available only for the fiscal period in which the capital increase decision or the articles of association are registered, and for the following four fiscal periods.
According to the final paragraph of the temporary 15th article added to the Corporate Tax Law by this Law, this change also applies to taxpayers who have benefited from the cash capital discount in previous periods. These taxpayers will be able to benefit from this discount for a total of five fiscal periods, including the 2022 period.
On the other hand, amounts that could not be utilized due to insufficient taxable income will continue to be carried forward to subsequent periods.
You can access the relevant Law here.
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