Tax Incentives in Turkey – Exemption of Investment Deduction
Being valid from 01.01.2006, with the Law numbered 5479, Article 19 of the Income Tax Law headed “Exemption of Investment Deduction on Business and Agricultural Earnings” has been abolished, and Temporary Article 69, attached to this Law, regulates the transition period implementations. According to this;
- Exemption amount which could not be deducted before the date of 01.01.2006, by reason of insufficient earnings in previous years,• Exemptions which will be calculated on account of investment expenditures which is done after the date of 01.01.2006 within the context of incentive certificates based on applications submitted before the date of 24.04.2003 for the investments which begun within the framework of Additional Articles1-6 of the Income Tax Law abolished previously,
• Exemptions which will be calculated on account of investment expenditures following the date of 01.01.2006, given that providing economic and technical integrity with investments which began before the date of 01.01.2006 within the scope of Article 19 of Income Tax law,
can be deducted as exemption of investment deduction.
(Income Tax Law a.19; Income Tax Law Temporary Article 61; Income Tax Law Temporary Article 65; Income Tax Law Temporary Article 69; Income Tax Circular/1; Income Tax Circular/22; Income Tax Circular/23; Income Tax Circular/32)
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