2024 Inflation adjustment in subsequent accounting periods
ARTICLE 44- (1) Within the scope of subparagraph (1) of paragraph (A) of Article 298 of the duplicate Article (A) of the Law No. 213 and Article 33 of this Communiqué, it is obligatory to make inflation adjustment in the 2024 accounting period and the following periods (temporary tax periods and accounting periods), including the temporary tax periods, depending on the existence / continuation of the conditions stipulated, and the inflation adjustment is terminated if both conditions specified in the aforementioned subparagraph are not realized at the same time.
In other words, in the accounting periods (including advance tax periods) following the period in which the conditions for inflation adjustment are realized, the failure to realize only one of the conditions in question will not eliminate the obligation to make inflation adjustment, and if an adjustment is made in any of the advance tax periods within an accounting period, an adjustment will also be made in the following advance tax periods and at the end of the current accounting period.
(2) In the event that the obligation to make inflation adjustment in the 2025 accounting period following the 2024 accounting period arises, the correction transactions related to this accounting period will be made within the scope of this (fourth) section of the Communiqué.
(3) In the event that the inflation adjustment conditions re-occur after an accounting period in which inflation adjustment is not applied; inflation adjustment will be made starting from the most recent period in which inflation adjustment is made.
In this case, the inflation adjustment for the first period in which the conditions for inflation adjustment re-occur will be made within the scope of the third section of the Communiqué. Previous year’s profit determined in this way will not be subject to tax, previous year’s loss will not be accepted as loss, but previous year’s financial losses will be taken into account with their book value in determining the tax base. Accumulated depreciation will be adjusted by taking into account the rate of increase in the value of the asset at the balance sheet date after the adjustment.
Source: Tax Procedure Law Communiqué No. 555
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