The deduction applies in the year of the increase and the following four years, with a higher rate for listed companies. It aims to encourage equity rather than debt financing.
Source: 5520 sayılı KVK m. 10/1-ı
Related terms
Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.Rights issueAn increase in a company's capital through cash or in-kind contributions by existing or new shareholders.Thin capitalisationTreating for tax purposes as capital the borrowings a company obtains from its shareholders or persons related to them that exceed a certain multiple of its equity.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Advance tax rulingA written explanation issued by the tax administration upon a taxpayer's written request about its own tax position or matters it considers unclear.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.
Last updated: October 31, 2026 · This definition is for general information only.