In 2024 and in the following periods when the inflation adjustment will be made, retained earnings or losses arising from the restatement of the balance sheet at the end of the 2023 accounting period will be subject to adjustment and the profit and loss after the restatement will be taken into consideration in determining the tax base for the relevant period.
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TAX PROCEDURE LAW NO 555
2023 retained earnings or losses arising from the restatement of the balance sheet at the end of the accounting period
ARTICLE 41- (1) Retained earnings or losses arising as a result of the correction of the balance sheet at the end of the 2023 accounting period will continue to be monitored in the sub-account of the Retained Earnings/Losses Account in which it is recorded and will be subject to correction in the following periods in accordance with paragraph (A) of the repeated Article 298 of the Law No. 213 and the principles set out in this Communiqué.
(2) Pursuant to the provision in subparagraph (5) of paragraph (A) of Article 298 (A) of the duplicate Article 213 of the Law No. 213, inflation differences of equity items can be offset against the aforementioned prior year losses resulting from the correction or added to the capital by corporate taxpayers and these transactions will not be considered as profit distribution.
Source: Communiqué No. 555 of the Tax Procedure Law
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