The General Communiqué on Inflation Adjustment was issued with the aim of eliminating the effects of ongoing high inflation on financial statements and mitigating the adverse effects of inflation on taxation.
The regulation includes:
- Fundamental principles to be considered during the adjustment process,
- Financial statements that are subject to the adjustment,
- Obligations for conducting inflation adjustments,
- Assets in the balance sheet that are subject to adjustment,
- Adjustments to be made to the balance sheet for the fiscal year ending in 2023,
- Inflation adjustment processes for the fiscal year 2024 and subsequent periods, along with other matters of special importance in the application.
Under this application, balance sheets for the fiscal year ending in 2023 for taxpayers subject to balance sheet basis in income and corporate tax, as well as those for taxpayers with a special accounting period ending in 2024, will be included. This includes non-monetary items in the assets and liabilities of the balance sheet.
Monetary items, however, will not be subject to this application.
The profit or loss arising from the inflation adjustment as of the end of the 2023 fiscal year will not be considered in determining the period's income.
This communiqué took effect upon its date of publication.
For more information, you can access the Official Gazette here. (In Turkish)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.