Under Article 280 of the Tax Procedure Law, foreign currencies are valued at the exchange rate and those not traded on the exchange at the rate announced by the Ministry of Treasury and Finance. In practice, the Central Bank's buying rate is used. The resulting exchange differences affect the tax base.
Source: Tax Procedure Law No. 213 Art. 280
Related terms
Exchange differencesThe difference arising from translating foreign-currency items at exchange rates on different dates.RediscountDiscounting receivables and payables represented by notes with maturities to their present value by deducting the interest element accrued up to the valuation date.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.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.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.
Last updated: October 22, 2026 · This definition is for general information only.