Circular 2026-035<\/p>\n\n\n\n
Amendments Have Been Made to Corporate Tax General Communiqu\u00e9 No. 25 and Corporate Tax General Communiqu\u00e9 No. 1<\/strong><\/p>\n\n\n\n Explanations have been made regarding the regulations in Law No. 7524, Article 32, and Law No. 7566, Article 2, and in the Income Tax Law and the Corporate Tax Law, with the General Communiqu\u00e9 on Corporate Tax No. 25, published in the Official Gazette dated May 24, 2026, and numbered 33263.<\/p>\n\n\n\n In this notice<\/p>\n\n\n\n - Application of earnings exemption to funds and investment partnerships established in Turkey,<\/p>\n\n\n\n - Carryforward of profits and losses in exceptional applications,<\/p>\n\n\n\n \u2013 The application of the interest rate reduction on paid-in capital increase to the fourth provisional taxation period,<\/p>\n\n\n\n \u2013 Regarding the calculation of the investment contribution amount to be deducted from the minimum corporate tax<\/p>\n\n\n\n Explanations have been made.<\/p>\n\n\n\n Tax exemption practices for funds and investment partnerships established in Turkey<\/strong><\/p>\n\n\n\n With Article 1 of the Communiqu\u00e9, explanatory examples regarding the aforementioned legal regulation have been added to the \u201c5.5. Exemption for the earnings of funds and investment companies established in Turkey\u201d section of the Corporate Tax General Communiqu\u00e9 (Series No: 1). <\/p>\n\n\n\n Accordingly, advance profit shares from earnings obtained as of January 1, 2025, will also be taken into account in the calculation of profit distribution. When calculating the real estate gain on which profit distribution is based, the gain to be determined by deducting the expenses and cost elements incurred due to this activity from the revenue obtained from real estate will be considered. <\/p>\n\n\n\n If the real estate activities or all activities result in a loss, the profit distribution requirement will not apply to the exemption. If the real estate activities result in profit, while other activities result in a loss, and the total profit is lower than the profit obtained from real estate, the distribution of half of the profit will be considered sufficient for the exemption. <\/p>\n\n\n\n As funds and partnerships, which by their nature of operation cannot include real estate in their portfolio or assets and cannot undertake construction projects, will not have the said income, the condition of profit distribution will not be sought for these funds and partnerships. <\/p>\n\n\n\n For funds and partnerships that derive income from real estate in any way to benefit from the exemption, a profit distribution condition will be sought for the said income. <\/p>\n\n\n\n Additionally, the communiqu\u00e9 provides explanations and examples regarding the allocation of common general expenses and depreciation, as well as the determination of distributable profit shares. .<\/p>\n\n\n\n Set-off of profit and loss in exceptional applications<\/strong><\/p>\n\n\n\n With Article 2 of the Communiqu\u00e9, the heading \u201c5.18. Evaluation of profits and losses in exemption applications\u201d has been added to the Corporate Tax Communiqu\u00e9 (Serial No: 1). In the said section, exemptions are divided into two categories: \u201cActivity-based exemption\u201d and \u201cTransaction-based exemption\u201d. <\/p>\n\n\n\n According to the communiqu\u00e9, if the exemption is specific to a certain activity, the relevant activity must be evaluated as a whole, and the profit must be determined within the framework of this entirety. In cases where exemptions are applied on a transaction-by-transaction basis, it has been stated that profit and exemption should be determined for each transaction, and examples have been provided.<\/p>\n\n\n\n