Inflation Accounting Practices, Transition of Corporate Books to Electronic Media, SSI Premium Discounts, and Other Updates

Inflation accounting practices clarified

Year 2024

- Companies with 2023 revenues exceeding 50 million TRY:

Applied inflation adjustments as of the 2nd and 3rd provisional tax periods in 2024.

Inflation adjustments will also be applied at the end of 2024.

- Companies with 2023 revenues below 50 million TRY:

Will apply inflation adjustments at the end of 2024.

Year 2025

- Regardless of turnover classification, all companies subject to balance sheets will apply inflation adjustments only at the end of 2025.

- Inflation adjustments will not be applied for provisional tax periods in 2025.

- Balance sheets will not be attached to provisional tax returns.

Companies in the jewelry sector will continue to apply inflation accounting across all provisional tax periods and at year-end, as in previous practices.

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Maintenance of corporate books and share ledgers in electronic media

Pursuant to the communiqué regarding the maintenance of commercial books unrelated to business accounting in electronic media, Joint Stock Companies (JSC) and Limited Liability Companies (LLC) will exclusively maintain the following books in electronic media as of January 1, 2026:

- Share ledger,

- Board of directors resolution book,

- Board of managers resolution book,

- General assembly meeting and negotiation book.

These books:

- Cannot be maintained physically.

- Will be processed by authorized users designated by company management.

- All transactions will be stored in an immutable manner according to the recording date.

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SSI premium discount update

- The 5-point Social Security Institution (SSI) premium discount applied within the scope of Law No. 5510 has been reduced to 4 points.

- The 5-point discount will continue for companies in the manufacturing sector.

- Sectors benefiting from the 5-point discount will be determined based on business lines categorized under "C (Manufacturing)" in the NACE Rev. 2 Economic Activity Classification.

- If the company's NACE code changes, the discount corresponding to the new NACE code will be taken into account.

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Currency Protected Time Deposit (KKM) practice terminated

Foreign currency protected time deposit account opening and renewal transactions for legal entities ceased as of February 15, 2025.

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Valuable Housing Tax

Residences with a building tax value based on real estate tax exceeding 12,880,000 TRY for the year 2024 must be declared by February 20, 2025.

Tax rates:

- 12,880,000 TRY – 19,321,000 TRY → 0.3%

- 19,321,000 TRY – 25,763,000 TRY → 0.6%

- Above 25,763,000 TRY → 1%

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Highlighted Updates

✔ The foreign currency asset limitation applied to TRY loan utilization for companies subject to independent audit has been lifted.

✔ Income tax returns can be filed via the Ready-Made Declaration System during March.

✔ The lowest retirement pension was increased from 12,500 TRY to 14,469 TRY.

✔ The minimum wage support amount for 2025 was determined as 1,000 TRY.

✔ NACE codes have been updated.

✔ Withholding tax rates applied on interest income and investment fund earnings were increased; some rates became 15%.

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