What is the status of interest and foreign exchange differences paid after the completion of the work because of construction works abroad, against tax laws in Turkey?
For the loans, which have been gotten to use in construction works abroad, they become the debt of the head office in Turkey and must be paid by the head office, in the event that there is not any organization abroad to pay interest and foreign exchange differences, which must be paid after the completion of construction works, and the portion of the loan amount, spent on construction works abroad, of revenue earning in relation to this work, is brought in Turkey.
Foreign exchange differences and interests arising after the completion of construction works abroad concerning these loans are an expense incurred for the acquisition and maintenance of commercial income for the organization at the center and may be taken into consideration in the determination of corporate income within the framework of general principles.
Source: GİB
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