Will a company providing software services from Türkiye to a company located abroad make a special calculation regarding inflation adjustment while benefiting from the 80% Corporate Tax Law 10/1-ğ discount?
The institution to which the said discount will be given will be shown in the provisional tax return.
No special transaction will be made in the company’s income statement regarding the income provided abroad and included in the scope of the discount. The company’s commercial profit or loss will be included in the income statement. No valuation and adjustment will be made regarding these incomes regarding inflation adjustment.
The mentioned regulation is not a tax exemption but a profit discount. The discount rate is 80% and the income will be declared in the provisional tax return with the line in the 122nd code in the DISCOUNTS field.
Source: Istanbul Chamber of Certified Public Accountants
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
