Inflation correction not planned for 2025 temporary tax periods
The Ministry of Treasury and Finance has recently published the General Communiqué on the Tax Procedure Law number 582 in the Official Gazette, which has now come into effect. This communiqué, prepared by the Revenue Administration, focuses on the inflation correction process for taxpayers.
According to the regulations outlined in the communiqué, income and corporate tax taxpayers who determine their earnings based on balance sheet during provisional tax periods must correct for inflation. The Ministry has been granted the authority to oversee and regulate this process.
Under the new communiqué, taxpayers who have conducted business during the first, second, and third temporary tax periods of the 2025 accounting period will need to make inflation adjustments. However, for periods where no inflation correction is required, the balance sheet does not need to be attached to temporary income/corporate tax returns.
It is important to note that taxpayers involved in the continuous buying and selling of gold, silver, and manufacturing processes are obligated to make inflation adjustments at the end of each temporary tax period. This requirement extends to the first, second, and third temporary tax periods of the 2025 accounting period.
The communiqué does not include inflation correction for balance sheets at the end of the 2024 accounting period. Therefore, all taxpayers falling under the scope of these regulations must ensure that inflation is corrected for balance sheets at the end of the 2024 accounting period.
