When making inflation adjustments on 30.06.2024, will the changes in the 500 capital account of sole proprietorships subject to the balance sheet method be taken into account during the year?
A correction will be made for the 500 account movements between 01/01/2024 and 30/06/2024. There is no special explanation in the Tax Procedure Law circular no. 555 regarding the correction of the capital account of sole proprietorships subject to the balance sheet method, and explanations have been made with examples regarding the correction of the capital account in VUK circular no. 165. However, these examples are also given on the basis of companies. Accordingly, we evaluate that the capital account should be corrected by taking into account the explanations in the “4. Correction of Capital” section of circular no. 165.
The payment date will be taken into account in the correction of the capital account.
Since the valuation of the capital account reduces the tax base with the expense effect it creates, we consider that it is important for the capital to be made from the bank with the capital payment explanation in terms of proof.
***
The capital, considering its structure, should be corrected using the coefficients to be calculated within the correction dates to be determined within the framework of subparagraph (3) of paragraph (A) of Article 298 of Law No. 213 and Article 17 of the General Communiqué of Tax Procedure Law No. 555, in terms of its sources (formulation method) such as paid in cash, contributed in kind, and later added to the capital.
However, in accordance with paragraph (2) of Article 15 of the aforementioned General Communiqué, while reaching the amount of the capital that is the basis for correction, the funds listed in this paragraph (added to the capital) should be deducted from the capital.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
