Changes With Regards to Inflation Adjustment For Fiscal Year 2025

The Ministry of Treasury and Finance has introduced significant changes to the inflation adjustment practice through the General Communiqué on the Tax Procedure Law No. 582, which was published in the Official Gazette No. 32814 on February 15, 2025. Accordingly:

• No inflation adjustment will be applied at the end of the first, second, and third provisional income tax periods of 2025. Therefore, the financial statements for these periods will not be subject to inflation adjustment.
• For taxpayers with a special accounting period, the provisional tax periods of the accounting period starting within the 2025 calendar year will be taken into account.
• For periods not subject to inflation adjustment, it will not be mandatory to attach a balance sheet to the provisional income and corporate tax returns.
• All taxpayers within the scope of the inflation adjustment, will be required to apply inflation adjustment in the year-end balance sheets for the 2024 and 2025 fiscal periods.
• Taxpayers exclusively engaged in the trade or production of processed gold and silver will continue to apply inflation adjustment at the end of each provisional tax period.