Will companies that entered liquidation in 2024 and whose liquidation is ongoing as of 30.06.2024 make inflation adjustments?
Inflation adjustments will be made for the balance sheet dated 30.06.2024. In the event of liquidation, the balance sheet after inflation adjustment will be given in the provisional corporate tax return to be submitted by the companies for the period before liquidation. Since provisional tax returns will not be submitted in the 3-month periods after entering liquidation, inflation adjustments will be made in 3-month periods, but they will not be declared with provisional returns.
In cases where a liquidation decision is made before the 2nd, 3rd or 4th provisional tax period within the 2024 accounting period and the liquidation is concluded before this date, the balance sheet for the end of the period in which the liquidation is concluded will not be corrected.
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Communiqué No. 555 of the Tax Procedure Law;
Correction of the balance sheet for the end of the 2023 accounting period in cases of termination of business, liquidation, transfer, merger, and change of type after the 2023 accounting period
ARTICLE 28- (1) In the temporary article 33 of Law No. 213, it is foreseen to correct the balance sheet for the end of the 2023 accounting period regardless of whether the conditions are met or not. On the other hand, the main principles regarding the continuous and correction process are included in paragraph (A) of the repeated article 298 of the same Law. Accordingly, depending on the fulfillment of the conditions, taxpayers will make the correction transactions for the 2024 accounting period based on the adjusted values in the balance sheet for the end of the 2023 accounting period subject to inflation adjustment, provided that there is no different regulation.
(2) In cases where a liquidation decision is made before the end of the 2023 accounting period and the liquidation is finalized before this date, the balance sheet for the end of the 2023 accounting period will not be adjusted. However, if the liquidation is finalized after the 2023 accounting period, the balance sheet for the end of the 2023 accounting period will be adjusted.
(3) In the event that the business is terminated during the 2024 accounting period, the balance sheet for the end of the 2023 accounting period will be subject to inflation adjustment due to a situation that arises regarding the new accounting period and requires a declaration to be submitted for a limited period.
(4) In cases of transfer, type change, full division and merger after the end of the 2023 accounting period, the institution within which the transfer, division or merger took place will subject the balance sheet of the company or private business that disappeared to inflation adjustment for the end of the 2023 accounting period.
Source: Istanbul Chamber of Certified Public Accountants
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