05.07.2022/45
A Five-Year Limitation Imposed on Cash Capital Increase Discount
With the addition of paragraph (ı) to Article 10/1 of the Corporate Tax Law No. 5520 by Law No. 6637 dated 27/03/2015, companies were allowed to deduct amounts calculated on cash capital increases or the paid-in portion of the capital of newly established companies through the tax return.
The regulation was amended with Law No. 7417, published in the Official Gazette No. 31887 on 05.07.2022.
Accordingly, while this discount was previously available indefinitely, it can now be utilized only for the accounting period in which the decision for capital increase or the registration of the articles of association during the initial establishment phase is made, and for the following four accounting periods.
According to the last paragraph of the temporary Article 15 added to the Corporate Tax Law by the said 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 accounting periods, including the 2022 period.
On the other hand, amounts that could not be used for the discount due to insufficient tax base will continue to be carried forward to the next period.
You can access the relevant Law here.
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