Domestic Minimum Corporate Tax Example-7
In case of:
- Commercial balance sheet profit,
- Real estate investment trust (REIT) real estate sale profit exemption.
Example 7:
(G) Real Estate Investment Trust Inc.’s commercial balance sheet profit for the 2025 fiscal period is 5,000,000 TL, with the entire profit exempt from tax under Article 5, Paragraph 1, Subparagraph (d) of the Corporate Tax Law. Of this profit, 3,000,000 TL consists of gains from the sale and rental income of real estate assets registered in the company’s balance sheet.
Accordingly, the minimum corporate tax for this entity will be calculated as follows:
| Corporate Tax | Minimum Corporate Tax | |
|---|---|---|
| Commercial Balance Sheet Profit (a) | 5,000,000 | 5,000,000 |
| REIT Profit Exemption – Income Other Than Real Estate Sales (b) | 2,000,000 | 2,000,000 |
| REIT Profit Exemption – Real Estate Sales Income (c) | 3,000,000 | |
| Corporate Tax Base (ç) | (a – b – c) | (a – b) |
| 0 | 3,000,000 | |
| Calculated Corporate Tax (d) | 0 | (3,000,000 x 10%) |
| 300,000 | ||
| Corporate Tax Payable | 300,000 |
Since no corporate tax is calculated due to the exemption, the assessed minimum corporate tax is set at 300,000 TL. Therefore, the calculated corporate tax will be considered as 300,000 TL.
Source: Corporate Tax Law Communiqué No. 23
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