No Inflation Adjustment in the Quarters of 2025

In the issue of the Official Gazette dated 15 February, it was announced that inflation adjustment will not be made in the first three quarters of 2025.

Taxpayers will not need to make inflation adjustment at the end of the first, second and third provisional tax periods of the accounting period for this year.

The General Communiqué on Tax Procedure Law No. 582 prepared by the Revenue Administration of the Ministry of Treasury and Finance entered into force after being published in the Official Gazette.

The Communiqué regulates the inflation adjustment process for taxpayers.

Pursuant to the relevant law, inflation adjustment is mandatory for income and corporate taxpayers who determine their earnings on a balance sheet basis in the periods when the prescribed conditions are met, including temporary tax periods.

The Ministry has the authority to make regulations on this issue.

With the new communiqué, the ministry has used this authority to ensure that the taxpayers within the scope of the first, second and third provisional tax periods of the 2025 accounting period will not make inflation adjustment at the end of the first, second and third provisional tax periods, if the conditions are met.

Balance sheets will not be attached to the provisional income/corporate tax returns to be submitted for the periods in which inflation adjustment will not be made.