Corporations Tax Exemption Coming to Companies That Exchange Foreign Currency

Corporations Tax Exemption Coming to Companies That Exchange Foreign Currency
Corporations Tax Exemption Coming to Companies That Exchange Foreign Currency

In order to prevent the fluctuation in foreign currency and increase the demand for the Turkish Lira, with the law proposal submitted to the Speaker of the Assembly on 13 January, the foreign currency will be converted into TL as of 31.12.2021. corporate tax exemption was envisaged.

It was announced on 31.12.2021 that legal entities wishing to benefit from the corporate tax exemption must have foreign currency in their foreign currency deposit accounts at the Bank and participation banks. It was stated that taxpayers who want to benefit from the tax exemption in their 2021 declarations (for the past) should also exchange their foreign currency until 17.02.2022 and transfer to a currency protected deposit account.

İlyas Emre Yayla, Former Account Specialist, Certified Public Accountant, Mazars Turkey Tax Partner, said that in case the law becomes law, it is important for taxpayers who deposit their foreign (including gold account) money in TL on 31.12.2021 and deposit them in a currency protected deposit account that also guarantees future currency income stated that it will provide significant tax advantages for both the past and the future.

What are the Tax Advantages Provided?

Mazars Turkey Tax Services Partner Emre Yayla stated that with the Law, both past and future exemptions are foreseen. According to the regulation; The portion of the foreign currency gains arising from the end of 3 period valuation of the foreign currencies in the assets of the taxpayers on 31.12.2021, which corresponds to the last 2021 months (ie between 3 and 1.10.2021), provided that the taxpayers evaluate them in TL deposit and participation accounts with a maturity of at least 31.12.2021 months. He said that they will be exempt from tax and therefore they will not pay the corporate tax related to these foreign exchange incomes in the 2021th temporary tax and corporate tax return of 4.

Yayla, foreign currency gains on the date of conversion of foreign currencies to TL (positive exchange differences in 2021) and interest, profit shares and other incomes (including support payments made by the Central Bank) for currency protected TL deposit and participation accounts opened from Corporate Tax Here, he emphasized that the withholding tax on the incomes obtained from the currency protected deposit account is 0% and therefore the final tax to be charged on the incomes with this regulation is 0 (zero).

Who Can Benefit?

With the exception of banks and other financial institutions determined by the Central Bank, it was announced that all legal entities that have foreign currency in their foreign currency deposit accounts at the Bank and participation banks on 31.12.2021.

There are 2 Conditions to Benefit from the Exception

It has been announced that taxpayers must have foreign currency in their Foreign Currency Deposit Account on 31.12.2021 and convert these amounts to Turkish Lira and deposit them into the Currency Protected Deposit account for at least 3 months. Tax Services Partner Yayla emphasized that the amount deposited cannot be cashed until the end of the maturity and if it is cashed before the maturity, the tax exemption will be canceled and the underpaid tax will be collected together with the late fee and tax loss penalty. He mentioned that it would be beneficial for taxpayers to determine the size of their deposits by taking into account their cash flows. He stated that taxpayers who want to benefit from the tax exemption in their 2021 declarations (for the past) should change their foreign currency until 17.02.2022 and transfer to a currency protected deposit account.

It will be useful to wait for the secondary regulation

Emre Yayla, Mazars Turkey Tax Services Partner, gave information about which currencies will be included in the scope; “All currencies that can be converted into Turkish Lira are included in the scope of “foreign currencies”. Therefore, it is necessary not to think only in terms of Euro and USD. Also; As it can be understood from the reasoning, taxpayers will be able to benefit from the exceptions when they convert their foreign currency in foreign currency deposit and participation accounts into TL deposit and participation accounts, and as of 31.12.2021, they will not be able to benefit from this opportunity for foreign currencies in their safes and foreign currencies in foreign accounts. However, it would be useful to wait for secondary regulations in order to clarify this issue.”

Exceptions Have Been Made for Taxpayers with Gold Accounts

In case the taxpayers convert their Gold accounts and their Gold accounts against scrap gold and/or processed into Turkish Lira over the conversion price and deposit them into a currency protected deposit account, the valuation to occur in the conversion kazanmoney they will get from their deposit account kazanIt has been announced that all of them will be exempted from corporate tax in the same way.
Yayla said that another very important regulation is about to be implemented in order to increase the demand for the Turkish Lira and thus prevent exchange rate fluctuations, and that this regulation is very important for taxpayers to benefit from the currency protected deposit account, which also provides income from the exchange rate increase, and by excluding the income from these accounts. He stated that for the time being, the inclusion of foreign currency in the official ledger in the safe account will both prevent a discrimination between taxpayers and will be a supportive factor for the return to the Turkish Lira and entry into the banking system in accordance with the purpose of the application.

Similar Ads

Be the first to comment

Comments