15.01.2023/16
The 2022 Rate of 13.47% Will Be Applied for Cash Capital Discount
The Law No. 6637 published in the Official Gazette on 07.04.2015, titled “Law on Amendments to Certain Laws and Decrees with Force of Law,” added an interest discount for cash capital increases to Article 10 of the Corporate Tax Law.
With this provision, corporate tax payers, excluding those in the finance, banking, and insurance sectors and public economic enterprises, can benefit from a cash capital increase discount on the amounts of paid-up or issued capital, which are registered in the trade registry within the relevant accounting period, or the paid portion of the capital of newly established corporations. This discount is calculated based on the “weighted annual average interest rate applied to TL commercial loans opened by banks,” announced by the Central Bank of the Republic of Turkey (CBRT) for the year in which the discount is utilized, and it is deducted from the corporate tax base up to 50% of the calculated amount by the end of the relevant accounting period.
Based on the authority granted by this article, conditions for applying a higher or lower discount rate were set by the Council of Ministers Decision No. 2015/7910.
Additionally, with the Law No. 7338 published in the Official Gazette on 26.10.2021, Article 10 of the Corporate Tax Law was amended to include the provision: “For cash capital increases covered by foreign funds, this rate shall be applied at 75%.”
In the calculation of the cash capital discount, the interest rate used is the “Interest Rate Applied to Commercial Loans (in Turkish Lira) (excluding Corporate Current Account and Corporate Credit Cards)” from the “Weighted Average Interest Rates on Loans Opened by Banks,” as announced by the CBRT for the year in which the discount is used. The most recently announced interest rate for 2022 is 13.47%. Therefore, this rate will be used in the calculation of the cash capital discount for capital increases registered after 01.07.2015 and paid in cash.
You can access the most recently announced interest rate by the CBRT for 2022 here.
Sincerely,
BİLGENER
