Yes. The firms can deduct their losses from their profit for the next 5 years.

In line with the provisions of article 9 titled ‘’Loss deduction’’of the Corporate Tax Law no.5520,

LOSSES OF PREVIOUS PERIODS SHOULD BE INDICATED SEPARATELY IN THE DECLARATION…
While establishing corporate tax base, losses can be deducted from relevant year’s tax base on condition that the amount of losses related to previous years should be indicated separately in the corporate tax return.

5 YEAR REQUIREMENT
a) The losses taking place in previous years’ declarations providing that they should not be transferred more than five years.

1- THE REQUIREMENT OF THE DEDUCTION OF ACQUIRED FIRMS’ LOSSES
As of the transfer date of the firms acquired within the scope of the first paragraph of article 20 of the law, qualifications stated below are required when deducting the loss in direct proportion to aquired assets and not exceeding the acquired amount of the capital stock in divided institution (that institution should be divided by means of dividing procedure carried out within the scope of the first paragraph of article 20 of the law) with the loss not exceeding the amount of capital stock:

1.1- CORPORATE TAX RETURN SHOULD BE SUBMITTED IN TIME!
Corporate tax returns related to the last five years should be submitted within legal period.

1.2- THE ACTIVITIES OF AQUIRED INSTITUTION SHOULD BE CARRIED OUT FOR FIVE YEARS!
The activities of an aquired institution should be carried out for five years after the transfer or the division of the acquired institution takes place. In the event of breach of these conditions, there will be loss of tax for the taxes that are not accrued in time, because of loss deduction.

1.3- OVERSEAS LOSS (WITHOUT PREJUDICE TO THE EXCEPTIONS) CAN BE DEDUCTED DURING 5 YEARS
b) The losses generated from overseas activies on condition that these losses will not be transferred more than 5 years (with the exception of the losses related to the earnings exempted from Corporation tax in Turkey;

1.4- OVERSEAS LOSSES SHOULD BE OBLIGED TO THE ENTITLEMENT CONTROL REPORT
1) Tax bases submitted according to the tax laws of country in which they remain active (including loss) should be obliged to report by institutions given authority to control in line with that country.
2) If the original report is submitted with its copy and translation to the related tax office in Turkey, it will become entitled to discount.
Tax returns in the appendix of the report prepared by audit institutions, balance sheets and income statements are compulsory to be confirmed by financial institutions.
If there is no audit institution in that country, a copy of tax returns related to each year and taken from the competent authorities should be confirmed in Turkish embassies and consulates (if not, it can be confirmed in the representatives of the country (ejustem generis) which protects Turkish benefits)and then the original document with its translated copy should be submitted to the related tax office.
If the overseas losses being subject to discount in Turkey are regarded as expense, the amount before the offset should be written in the declaration in Turkey.

Source: Corporate Tax Law