What is rediscount?
Rediscounting is reducing the period-end value of notes receivable and payable with maturities to their present value by removing the interest element for the time remaining to maturity. Articles 281 and 285 of the Tax Procedure Law allow taxpayers keeping books on the balance sheet basis to rediscount their note-based receivables and payables.
- Internal discount: Rediscount = Amount × Rate × Days / (Day-count basis × 100 + Rate × Days)
- External discount: Rediscount = Amount × Rate × Days / (Day-count basis × 100)
For tax purposes, the Central Bank of the Republic of Türkiye (CBRT) rediscount rate in effect on the transaction date is used.