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Turkey Consulting on Draft Guidance for 10% Interest Deduction Limitation Rules — Orbitax Tax News & Alerts

Turkey's Revenue Administration has announced the publication of a draft communiqué for consultation that provides guidance and several examples for the application of the interest deduction limitation rules recently implemented by Presidential Decree No. 3490 of 3 February 2021. The limitation rules, which are effective from 1 January 2021, essentially provide that where the debt of a taxpayer exceeds equity, 10% of financing expenses are not allowed as deductible expenses, with certain exclusions for credit institutions, financial institutions, etc. The consultation on the draft communiqué runs until 12 April 2021, after which it will be finalized and officially published.