A corporate tax exemption for conversions into a TL deposit account

According to the information obtained from the Ministry, if corporate taxpayers convert their foreign currencies on their balance sheets dated December 31, 2021 into Turkish lira within the framework of the regulations of the Central Bank of the Republic of Turkey (CBRT), they will be able to use them with a maturity of at least three months in TL deposit and participation accounts to be opened for this reason. Within the scope of the draft prepared by the Ministry, foreign exchange gains calculated as a result of exchange rate valuation will be exempted from corporate tax. Interest and dividends obtained at the end of maturity will also be exempt from corporate tax. If the conversion into Turkish lira is made by February 17, 2022, this exemption will also be available for the last temporary tax period of 2021. Earnings from the conversion of gold to TL are also within the scope of the support. In addition, corporate taxpayers will be able to convert their assets in gold accounts and their gold account balances against processed and scrap gold into Turkish lira at a conversion price. In the event that the Turkish lira asset thus obtained is used in Turkish lira deposit and participation accounts with a maturity of at least three months, the gains to be made on the date the gold is converted into Turkish lira and the interest and dividends obtained at the end of the maturity will also be exempt from corporate tax.