Tax penalties and late payment surcharges, interest on thin capitalisation, passenger car expenses above certain limits and donations above the deductible limits are typical non-deductible expenses. These amounts are added back to commercial profit in the tax return.
Source: Corporate Tax Law No. 5520 Art. 11
Related terms
Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.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.Late payment surchargeA surcharge applied for each month from the due date when a public receivable is not paid on time.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.
Last updated: October 22, 2026 · This definition is for general information only.