1. New Rules for Income Tax Payers

The 2025 Calendar Year

Effective Date: Applicable to the 2025 taxation period and subsequent periods.

Certification Thresholds

Individual Exemption or Deduction Amount: Mandatory if a single item exceeds TRY 500,000.

Multiple Exemptions and Deductions: Mandatory if the aggregate total exceeds TRY 1,000,000.

Reduced Income Tax Application: Mandatory irrespective of the benefit amount and without any monetary threshold.

2. New Rules for Corporate Tax Payers

The 2025 Fiscal/Accounting Period

Effective Date: Applicable to the 2025 accounting period and subsequent fiscal periods (the print error on the visual has been corrected).

Certification Thresholds

Individual Exemption or Deduction Amount: Mandatory if a single item exceeds TRY 500,000.

Multiple Exemptions and Deductions Total: Mandatory if the aggregate total exceeds TRY 1,000,000.

Reduced Corporate Tax and Minimum Corporate Tax Applications: Mandatory irrespective of the benefit amount and without any monetary threshold.

3. Common Provisions and Consequences

Consequences of Failure to Submit the Certification Report

Liability of the SWORN-IN CPA

Full Certification Exception

Taxpayers with an active full tax certification agreement are exempt from submitting a separate certification report.

Introduction: New Era and Strategic Importance

With the publication of General Communiqué Serial No. 49 on the Law of Independent Accountant Financial Advisors and Sworn-in Certified Public Accountants by the Ministry of Treasury and Finance, tax legislation in Turkey has entered a significant transformation phase effective from 2025.

This new regulation conditions the utilization of certain exemptions and deductions declared in tax returns upon the submission of an attestation/certification report prepared by a Sworn-in Certified Public Accountant (SWORN-IN CPA). This amendment holds critical strategic importance for enterprises seeking to fully leverage tax benefits and necessitates meticulous management of compliance processes.

The primary objective of this new regulation (Article 1) is to verify the accuracy and statutory compliance of exemption and deduction applications that exceed specified monetary limits for income and corporate taxpayers through a SWORN-IN CPA audit. Consequently, while enhancing the accuracy and transparency of the tax system, it also reinforces the reliability of the taxpayers' financial statements.

This guide is designed to provide a step-by-step roadmap to assist taxpayers in comprehensively understanding their new legal obligations, accurately determining the scope of certification requirements, and seamlessly managing the compliance process. We shall now proceed to examine the statutory framework supporting this milestone regulation.

Statutory Basis and Purpose of the Certification Report

The new certification requirement is constructed upon a solid statutory foundation within the scope of authority granted to the Ministry of Treasury and Finance. This process is not a mere administrative formality; rather, it is a core mechanism aimed at improving the audit efficiency of the tax system and the accuracy of declarations. The legal infrastructure of this regulation rests upon two primary laws that constitute the cornerstones of tax legislation:

Tax Procedure Law No. 213 (Duplicate Article 227): This article empowers the Ministry of Treasury and Finance to condition the utilization of provisions such as tax exemptions, exclusions, and deductions upon the presentation of a certification report prepared by a SWORN-IN CPA.

Law No. 3568 on Independent Accountant Financial Advisors and Sworn-in Certified Public Accountants (Article 12): This article authorizes the Ministry of Treasury and Finance to make the utilization of tax exemptions, exclusions, and deductions subject to the submission of a certification report drawn up by a SWORN-IN CPA.

Objective of Certification

The certification report to be issued by the SWORN-IN CPA serves common and explicit objectives for both Income Tax (Article 3) and Corporate Tax (Article 7) payers. These objectives aim to secure the accuracy and legality of the declared tax advantages:

• Determining the compliance of the taxpayer’s statutory ledger entries and supporting source documents with relevant legislative provisions, and verifying whether they fairly represent the actual transactions.
• Confirming the arithmetic and computational accuracy of the exemptions and deductions reported in the tax returns.
• Verifying that the taxpayer satisfies all statutory criteria stipulated by law for the intended tax exemptions or deductions.
• Ensuring that the earnings subject to exemption or deduction have been accrued or generated in accordance with the law and assigned to the correct fiscal period.

Reports compiled in line with these fundamental objectives provide robust audit evidence to the tax administration while protecting taxpayers from potential tax exposure. We shall now elaborate on the specific rules and monetary thresholds applicable to income tax payers.

Scope of Mandatory Certification for Income Tax Payers

The mandatory SWORN-IN CPA certification introduced for income tax payers covers exemption and deduction applications that exceed specific monetary thresholds. Proper comprehension of these guidelines is vital to prevent any loss of rights during the tax filing period.

On a fiscal period basis, the regulation shall be effective from the following dates:

• For calendar-year taxpayers: Returns filed for the 2025 calendar year and thereafter.
• For taxpayers subject to a special fiscal year: Returns filed for special accounting periods commencing in 2025 and thereafter.

Pursuant to Article 4, the conditions triggering the obligation to submit a certification report for an income tax payer are detailed below:

• Single Item Threshold: Any individual exemption or deduction amount declared as a distinct line item on the annual income tax return exceeding TRY 500,000.
• Total Threshold: Multiple exemption and deduction amounts, each below the TRY 500,000 limit individually, whose aggregate total exceeds TRY 1,000,000.
• "Other" Items Threshold: The amount entered under the "Other Deductions" or "Other Exemptions" lines of the return (or the sum of both) exceeding TRY 1,000,000 individually.
• Cumulative Threshold: The combined grand total of exemption/deduction amounts shown on both distinct lines and "Other" line items exceeding TRY 1,000,000.
• Absolute Obligation: Taxpayers benefiting from the reduced income tax application within the scope of Article 32/A of Law No. 5520 must submit a SWORN-IN CPA certification report, irrespective of the amount of tax reduction utilized and without any monetary threshold.

Furthermore, it should be noted that these monetary limits are not fixed. Pursuant to Article 4(4), these amounts will be adjusted annually by half of the designated revaluation rate. Fractional amounts not exceeding TRY 10,000 shall be disregarded during this calculation.

Following these explicit regulations for income tax payers, we shall now examine the similar yet occasionally distinct requirements applicable to corporate tax payers.

Scope of Mandatory Certification for Corporate Tax Payers

While the mandatory SWORN-IN CPA certification instituted for corporate tax payers mirrors the rules applied to income tax, it imposes specific limits and criteria tailored to corporate exemptions and deductions. Corporations must diligently assess these variances when structuring their tax planning.

The effective date of the regulation is aligned with income tax as follows:

• For calendar-year taxpayers: Accounting periods ending in 2025 and thereafter.
• For taxpayers subject to a special fiscal year: Special accounting periods beginning in 2025 and thereafter.

Under Article 8, the principal scenarios triggering the obligation to file a certification report for a corporate tax payer are as follows:

• General Thresholds: The limits applicable to income tax payers—TRY 500,000 for a single exemption or deduction item, and TRY 1,000,000 for multiple items or the aggregate of "Other" items—apply equally to corporate tax payers.
• Specific Threshold (Reduced Rate): In cases where the corporate tax rate is applied at a reduced rate, if the total tax benefit utilized through this scheme exceeds TRY 200,000, the underlying transaction must be certified by a SWORN-IN CPA.
• Absolute Obligation: Corporations utilizing the following schemes must file a SWORN-IN CPA certification report, regardless of the amount of deduction or benefit utilized:
• Reduced corporate tax application (Law No. 5520, Article 32/A).
• All applications concerning the domestic and global minimum top-up corporate tax.

Statutory Exemption: As a notable exception, State Economic Enterprises (SEEs) subject to Decree Law No. 233 and their subsidiaries are exempt from the certification requirement introduced under this Communiqué (Article 8(6)).

Having clarified the scope of the mandate, we may proceed to the operational details regarding the preparation and submission of the certification report to the tax administration.

Preparation, Submission, and Content of the Certification Report

For taxpayers falling within the scope of the certification requirement, managing the operational steps and compliance calendar accurately is of critical importance to fulfill legal obligations seamlessly. The preparation, submission, and minimum disclosures required in the report are explicitly defined in the legislation.

Report Submission Deadlines

Certification reports must be submitted to the Revenue Administration in a timely manner and in the correct format (Articles 5 and 9):

• General Rule: The relevant certification report must be submitted alongside the income or corporate tax return, or within two months following the expiration of the statutory filing period.
• Special Provision (Corporate Tax): For the certification report regarding the exemption under Article 5/1-d-4 of Law No. 5520, this period is designated as three months following the deadline for filing the return.
• Filing Method: All reports must be transmitted electronically via the Digital Tax Office portal.

Practical Solution for Taxpayers with an Active Full Certification Agreement

Full Certification Report

A practical solution has been introduced for taxpayers who currently maintain a full tax certification agreement with a SWORN-IN CPA for their annual income or corporate tax returns.

Such taxpayers are not required to submit a separate secondary certification report for the exemptions and deductions mandated under this Communiqué. The sole requirement is to coordinate with the SWORN-IN CPA to ensure that a dedicated section, reserved for the analysis and determinations of the exemptions and deductions covered under this Communiqué, is integrated within the existing full tax certification report (Articles 5(3) and 9(4)).

Minimum Disclosures Required in the Report

Certification reports prepared by the SWORN-IN CPA must contain specific minimum disclosures. This information must transparently present the scope and findings of the audit performed (Articles 6 and 10):

• Attestation details of the taxpayer's statutory ledgers and the conformity of the supporting source documents with the legislation.
• Detailed analysis regarding whether the statutory conditions for the exemption or deduction utilized have been met, along with verification of the computational accuracy of calculations.
• Determination of whether the earnings subject to the exemption were generated in the manner and within the timeframe prescribed by the relevant legislation.
• Verification of whether the related expenses, costs, and revenue items are substantiated by valid and appropriate documentation.
• The "Conclusion" section of the report must contain explicit statements concerning the legislative compliance of the audited matters and clearly state the certified (approved) exemption/deduction amounts.

Proper management of these operational steps forms the foundation of the compliance process. We shall now discuss the potential ramifications of non-compliance and the respective liabilities of the parties involved.

Liabilities and Consequences of Non-Compliance

The SWORN-IN CPA certification process entails substantial liabilities for both the taxpayer and the SWORN-IN CPA. Meticulous awareness of these responsibilities and full adherence to statutory requirements are essential to avert potential financial and administrative sanctions. The repercussions of non-compliance are severe.

Joint and Several Liability of the Sworn-in Certified Public Accountant

• Reconciling and cross-referencing documents pertaining to goods, services, and cash flows to verify mutual substantiation.
• Performing production yield tests for manufacturers using data such as capacity reports and raw material consumption records.
• Conducting in-depth investigations to determine whether supporting documents (such as invoices, customs declarations, etc.) are fictitious or misleading in content.

These extensive audits demonstrate that the SWORN-IN CPA acts not merely as an auditor, but as a safeguard mechanism that validates the taxpayer's declarations, thereby protecting them from potential tax-loss penalties.

Sanctions for Late Submission of the Certification Report

These severe ramifications underscore the necessity of managing the compliance process with utmost diligence. Finally, we summarize the concrete steps taxpayers should undertake in preparation for this new era via an action plan.

Conclusion and Action Plan for Taxpayers

The new SWORN-IN CPA certification mandate, taking effect from 2025 onwards, represents an important regulatory shift that demands a proactive approach from taxpayers. Uninterruptedly utilizing tax benefits that exceed designated monetary thresholds depends on strategic planning and timely execution of procedures. In light of the critical insights provided in this guide, the concrete measures taxpayers must follow to align with the new regulatory landscape are presented below as a compliance checklist.

Compliance Checklist

Perform an Assessment:

Identify and list all exemptions and deductions you plan to claim on your 2025 tax returns.

Compare these amounts against the monetary thresholds of TRY 500,000, TRY 1,000,000, and TRY 200,000 detailed in Sections 3 and 4 of our guide to determine whether they fall within the scope of mandatory certification.

Establish Contact with a SWORN-IN CPA:

If your assessment indicates that you fall within the mandatory scope, immediately consult your trusted Sworn-in Certified Public Accountant to draft and execute an "Income/Corporate Tax Exemption, Deduction, and Application Certification Contract".

Evaluate the Status of Your Full Tax Certification:

If you currently maintain an active full tax certification agreement with a SWORN-IN CPA, coordinate with them to verify if these new obligations can be comprehensively integrated into the existing report and implement the necessary updates.

Ensure Meticulous Record-Keeping:

Ensure that all statutory ledgers, supporting documents, invoices, contracts, and evidentiary records required for the SWORN-IN CPA audit process are complete, accurate, and compliant with current regulations. Finalize your preparations in advance to avoid operational delays once the process commences.

Calendar the Milestones:

Record the final submission deadline of the certification report (two or three months following the expiration of the tax return filing period) on your business calendar or planner. Maintain consistent communication with your SWORN-IN CPA to track progress and ensure timely completion.