Announcement on Exemption Declaration of Taxpayers Switching to KKMH
Law No. 7352 on Amendments to the Tax Procedural Law and Corporate Tax Law was published in the Official Gazette dated 29/01/2022 and numbered 31734.
According to the Provisional Article 14 added to the Corporate Tax Law, regarding the accounts converted into Turkish lira at the conversion rate within the scope of supporting the conversion to Turkish lira deposits and participation accounts; In the event that the institutions convert their foreign currencies in their balance sheets dated 31/12/2021 into Turkish lira until the date of submission of the declaration regarding the fourth provisional tax period and use the Turkish lira assets obtained in this way in Turkish lira deposit and participation accounts with a maturity of at least three months opened within this scope, the part of the exchange rate difference gains arising from the period-end valuation of foreign currencies corresponding to the period between 01/10/2021 and 31/12/2021 is exempted from corporate tax.
Accordingly, in the “Exceptions and Deductions to be deducted even if there is a loss” section of the “Tax Base notification” heading of the Corporate Provisional Tax Declaration, “KVK Provisional Art. 14/1-A” line has been added.
Taxpayers who convert the foreign currency amount in their balance sheet dated 31/12/2021 into TL deposits or participation accounts until February 17, 2022 will be able to declare the calculated exemption amount by using this line in the declaration.
You can access the announcement here.
