Over which amount will the inflation adjustment of the 500 account in sole proprietorships subject to the balance sheet method be calculated?
Capital adjustment will be made by taking into account the payment date of the paid-in capital by taking into account the 500 account and 501 account. Changes in capital during the year will be taken into account in determining the adjustment date.
Since the valuation of the capital account reduces the tax base with the expense effect it creates, we consider that it is important in terms of proof that the capital is made from the bank with the explanation of capital payment.
***
Adjustment will be made for 500 account movements between 01/01/2024-30/06/2024. In the Tax Procedure Law Communiqué No. 555, there is no special explanation regarding the correction of the capital account of those who are subject to the balance sheet procedure from sole proprietorships, and in the Tax Procedure Law circular No. 165, explanations were made together with examples regarding the correction of the capital account. However, these examples are also based on companies. Accordingly, we consider that the capital account should be adjusted by taking into account the explanations in the section “4. Adjustment of Capital” in Circular No. 165.
The date of payment will be taken into account in the correction of the capital account.
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.
