Communiqué on Making the Revaluation of Economic Assets Permanent Has Been Published

SUMMARY: Full-liability taxpayers keeping books on a balance-sheet basis for income or corporate tax purposes (excluding those performing inflation adjustment and those permitted to keep records in a currency other than Turkish lira) may revalue their depreciable fixed assets included in their balance sheets (excluding those subject to sale-and-leaseback transactions or lease certificate issuances for as long as they retain this nature) and the accumulated depreciation shown on the liabilities side of their balance sheets, under certain conditions, at year-end accounting periods in which inflation adjustment conditions are not met.

Under the permanent regulation, taxpayers who optionally revalue in 2022 or subsequent years may, if they wish, perform revaluation for the period from 1 January 2005 to the year preceding the year of optional revaluation under the permanent regulation, in exchange for a 2% tax.

Law No. 7338 "on Amendments to the Tax Procedure Law and Certain Laws" enacted in October last year made the revaluation facility in the tax system permanent, with effect from 1 January 2022.