The interest rate announced by the Central Bank on 27 December 2024, to be used for the cash capital increase interest deduction in determining 2024 corporate income, was 55.55%.
The interest rate announced on the website of the Central Bank of the Republic of Türkiye as at the end of 2024, most recently on 27 December 2024 — Commercial Loans (Extended in TRY) (Excluding Corporate Overdraft Accounts and Corporate Credit Cards) (Flow Data, %) — to be taken into account for the cash capital increase interest deduction in determining corporate income for the 2024 accounting period, was 55.55%. Accordingly, for the interest deduction to be calculated on cash capital increases for 2024, the rate of 55.55% will be used unless any change occurs as explained in the following paragraph, in which case the most recent updated rate will apply. Since the footnotes to the interest rate announcements state that the time series may be updated because of retrospective corrections by banks, we would remind you that the announced rate should be reconfirmed when preparing the 2024 corporate income tax return, and that any updated rate should be used for the cash capital increase interest deduction.
Article 49 of Law No. 7417, published in Official Gazette No. 31887 of 5 July 2022, introduced a time limit on the cash capital increase interest deduction, which had previously been open-ended; that period is limited to 5 years.
“This deduction is available separately for the accounting period in which the capital increase resolution, or the articles of association at the initial incorporation stage, is registered, and for the four accounting periods following that period. Where a capital reduction is made in those periods, the amount of capital reduced is not taken into account in calculating the deduction.” An amount that cannot be deducted in the relevant accounting period because income is insufficient may be deducted in determining the advance tax bases for the advance taxation periods of the following accounting period.