Example of Domestic Minimum Corporate Tax – Example 5
Domestic Minimum Corporate Tax calculation in cases where the entity has commercial balance sheet profit, exempt earnings from FX-protected deposit accounts, prior year losses, and entitlement to apply reduced corporate tax under an investment incentive certificate
Example 5: For (E) A.Ş., the commercial balance sheet profit for the fiscal year 2025 is 15,000,000 TL, with an exempt income of 5,000,000 TL from FX-protected deposit accounts and prior year losses amounting to 5,000,000 TL. The company is entitled to apply reduced corporate tax on a tax base of 2,000,000 TL due to an investment incentive certificate obtained before August 2, 2024, with a reduced tax rate of 5% for the fiscal year 2025.
Accordingly, the minimum corporate tax for this company is calculated as follows:
For (E) A.Ş., the minimum corporate tax is calculated by deducting 400,000 TL, representing the tax not levied due to the incentive under Article 32/A, from the initially calculated minimum corporate tax of 1,500,000 TL, resulting in a minimum corporate tax of 1,100,000 TL. Since this amount exceeds the corporate tax of 850,000 TL calculated based on (E) A.Ş.’s declaration, the applicable corporate tax for (E) A.Ş. will be 1,100,000 TL.
Source: Corporate Tax Law Communiqué No. 23
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