The Communiqué on the Determination of the Interest Rates to Be Applied in Rediscount and Advance Transactions was published in Official Gazette No. 32323 of 28 September 2023.
The “Communiqué on the Determination of the Interest Rates to Be Applied in Rediscount and Advance Transactions” was published in Official Gazette No. 32323 of 28 September 2023.
Under that Communiqué, the discount interest rate to be applied in rediscount transactions against notes with a maturity of at most 3 months has been set at 30.75% per annum, and the interest rate to be applied in advance transactions at 31.75% per annum.
Accordingly, from 28 September 2023 an interest rate of 30.75% per annum must be used in calculating the rediscount on notes receivable and payable when determining advance and annual personal and corporate income tax bases (under Tax Procedure Law General Communiqué No. 238, the internal discount method must be used in rediscount calculations).
As is known, under the Tax Procedure Law receivables and payables are in principle valued at their book value. However, in valuing receivables and payables evidenced by notes that have not yet matured, taxpayers other than banks, bankers and insurance companies may, if they wish, apply a rediscount and value their receivables and payables at their discounted value as at the valuation date.
Under Article 285 of the Tax Procedure Law, taxpayers who restate notes receivable that have not yet matured at their value as at the valuation date are obliged to apply the same treatment to notes payable that have not yet matured.
Banks, bankers and insurance companies are obliged to restate their receivables and payables at their value as at the valuation date using the official discount rate of the Central Bank of the Republic of Türkiye and the interest rate they apply in their transactions.
Where the rate of interest is not stated on the note, applying the Central Bank’s official discount rates when restating receivables and payables evidenced by notes at their value as at the valuation date is a statutory requirement.
In addition, Tax Procedure Law Circular No. 64 of 30 April 2013, prepared by the Revenue Administration, explains that cheques in substance acquire the character of being subject to a maturity for tax purposes, and that post-dated cheques may therefore benefit from the rediscount treatment provided for receivables and payables evidenced by notes that have not matured as at the valuation date.