Taxpayers will not be required to make an inflation adjustment at the end of the first, second, and third provisional tax periods of the accounting period for this year.

General Communiqué on Tax Procedure Law numbered 582, prepared by the Revenue Administration of the Ministry of Treasury and Finance, was published in the Official Gazette and entered into force. The communiqué includes a regulation regarding taxpayers’ inflation adjustment process. According to the relevant law, income and corporate taxpayers who determine their earnings on a balance sheet basis in periods where the specified conditions are met, including provisional tax periods, are required to make an inflation adjustment. The Ministry has the authority to regulate this matter. With the new communiqué, the Ministry used this authority to ensure that inflation adjustments are not made by taxpayers within the scope at the end of the first, second, and third provisional tax periods of the 2025 accounting period if the conditions are met. Balance sheets will not be attached to the temporary income/corporate tax returns for periods in which no inflation adjustment is made.

EXCLUSION OF GOLD AND SILVER SELLERS

Furthermore, taxpayers engaged in the continuous processing, buying, and selling of gold, and silver, regardless of the conditions, are required to make an inflation adjustment (by the end of each provisional tax period). Therefore, these taxpayers will continue to make inflation adjustments at the end of the first, second, and third provisional tax periods of the 2025 accounting period. The regulation does not cover the inflation adjustment of the balance sheets for the end of the 2024 accounting period. All taxpayers within the scope are required to make an inflation adjustment for the balance sheets for the end of the 2024 accounting period.