The Law No. 7352 on the Amendment on Tax Procedure Law and Corporate Income Tax Law has been approved by the Grand National Assembly of Turkey. Within the scope of supporting Currency Protected Deposit accounts, the income of corporations to be obtained from these accounts is exempted from corporate income tax.
With the amendment, if corporations convert their foreign currency monies in their balance sheets presented as of 31.12.2021 to Turkish Lira by 17.02.2022 and evaluate this amount in their deposit or participation accounts for at least three months, the income from foreign currency valuation of the last quarter of 2021 (1 October – 31 December) will be exempted from corporate income tax which would be applied as 25%.
Corporations are able to take advantage of this exemption until the end of 2022 although they are not able to convert foreign currency monies by 17.02.2022. In this case, corporate income tax exemption will cover income from foreign currency valuation between the period of evaluation at the date of advance corporate income tax return and convert date. In addition, income derived from interest at the end maturity date will be exempted from corporate income tax.
Corporations will take advantage of exempting their foreign exchange gains, interest and other earnings related to the Law if the conditions are met.