The corporate tax exemption applied to currency protected deposits (CCD) and participation accounts is ending as of today. Unless a new decision is made, the tax advantage provided to companies in CCD will no longer be applied as of July.
Tax Advantage Will Not Be Renewed
Treasury and Finance Minister Mehmet Şimşek announced that the tax advantage of companies in foreign currency exchange-protected deposits will not be renewed in July. The term of the corporate tax exemption in KKM was extended from December 31, 2023 to June 30, 2024. However, this period ends today.
Corporate Tax Exemption Details
Within the scope of the regulation, the President was given the authority to extend the period following the expiration of the period for periods not exceeding six months, to reduce the applied exemption rate, to bring it back to the legal level, to reduce the exemption rate according to the account type, maturity and opening date of the accounts, and to determine different exemption rates.
The Melting Trend Continues in KKM
According to the Banking Regulation and Supervision Agency (BDDK) data, there was a decrease of 35.8 billion TL in currency protected deposits in the week of June 21. Thus, the size of currency protected deposits decreased to 2 trillion 33 billion TL.
Sharp Decline in Foreign Currency Convertible Deposits
The stock balance of currency protected/gold convertible deposits/participation funds decreased by $5 billion in May to $67.9 billion. The stock balance of legal entities decreased by $2.2 billion from $21.4 billion to $19.2 billion. The Turkish Lira KKM stock balance decreased by 28 billion lira from 65.1 billion lira to 37.1 billion lira.
