Will companies in liquidation submit provisional corporate tax returns for the 2024/2nd period?
Companies in liquidation will not submit provisional tax returns, but will make inflation adjustment records at the end of provisional tax periods for which inflation adjustments will be made during the liquidation process.
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Communiqué No. 555 of the Tax Procedure Law;
Adjustment 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 provisional article 33 of Law No. 213, it is foreseen that the balance sheet for the end of the 2023 accounting period will be adjusted regardless of whether the conditions are met or not. On the other hand, the main principles regarding the ongoing and correction process are included in paragraph (A) of the repeated article 298 of the same Law. Accordingly, subject to the fulfillment of the conditions, taxpayers will make the adjustment transactions for the 2024 accounting period based on the adjusted values in the balance sheet for the end of the 2023 accounting period, which are 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 corrected. However, if the liquidation is finalized after the 2023 accounting period, the balance sheet for the end of the 2023 accounting period will be corrected.
(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 or 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 sole proprietorship that disappeared to inflation adjustment at the end of the 2023 accounting period.
Source: Istanbul Chamber of Certified Public Accountants
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