A letter addresses a request regarding the tax treatment of a company’s earnings from the operation of private schools under the educational tax exemption and discounted corporate tax regulations. The company has mentioned that the profits from operating an elementary school and an Anadolu High School at the Gölbaşı campus were subject to corporate tax exemption for the 2008-2013 periods. The company also inquired whether the earnings from the operation of a new Fen High School and Anadolu High School, which are being relocated to a new building, would qualify for the same exemption and discounted corporate tax benefits. In general, the relocation of existing schools is not considered a new school opening, and thus, no exemption would apply to the profits from the relocated schools. However, for the new Fen High School, it may qualify for discounted corporate tax based on the new investment incentive certificate.
Source: Revenue Administration
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