Cancellation of Inflation Accounting for Provisional Tax Periods of the 2025 Fiscal Year

Circular No: 2025 / 21

Date: 19.02.2025

On February 15, 2025, the Tax Procedure Law General Communique (Series No: 582) was published in Official Gazette No. 32814. The communique regulates that, even if the conditions for inflation adjustment are met, inflation accounting will not be implemented at the first, second, and third provisional tax periods of the 2025 fiscal year.

According to the communique, it has been deemed appropriate for taxpayers within the scope to not perform inflation adjustments during the first, second, and third provisional tax periods of the 2025 fiscal year. These taxpayers will also not be required to attach a balance sheet to the provisional tax return.

In addition, taxpayers who are subjected to a special accounting period will apply the inflation accounting in the accounting period that will start in the 2025 fiscal year.

Taxpayers within the scope will apply inflation accounting on the balance sheets as of the end of the 2024 fiscal year (for those subject to special accounting periods, the balance sheets as of the end of the accounting periods ending within the 2025 calendar year).

Taxpayers exclusively engaged in the processing, trading, and manufacturing of gold and silver will continue to apply inflation adjustments during the first, second, and third provisional tax periods of the 2025 fiscal year.

Kind regards,

“Our explanations given above contain general information on the subject. No liability claims can be made against Rödl & Partner for the consequences arising from or related to the content of this document."