Numara : 12
Tarih : 28.9.2018

TAX NEWS NO: 2018/12

September 26, 2018

Subject: The Foreign Exchange Losses To Be Excluded From Capital Loss or Insolvency Calculations.

The Communiqué on the Procedures and Principles for the Application of Article 376 of the Turkish Commercial Code No. 6102” was published in the Official Gazette on September 15th, 2018 and entered into force on the same date.

As known, Article 376 of the Turkish Commercial Code No. 6102 (TCC) is in relation to the companies incurring capital loss or companies that are in the state of insolvency.

As per the provisional Article 1 of this Communiqué, until the date 1/1/2023, the foreign exchange losses arising from foreign currency liabilities that are not yet realized, may not be taken into consideration with regard to calculations for capital loss or determination of the insolvency position within the scope of Article 376 of Turkish Commerce Code.

On the other hand, other financial expenses (such as interest expenses) except foreign exchange differences are not included within the scope of the provisional Article 1.

The foreign exchange differences will continue to be treated as expense and cost since the scope of mentioned regulation is not concerning to the preparation of financial statements or calculation of tax.


Yours sincerely,

Deloitte Turkey


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