Advantages of Spending Cash Foreign Capital within the Scope of Investment Incentive Certificate
With the 59th article of the "Law on the Amendment of the Tax Procedure Law and Some Laws" numbered 7338 published in the Official Gazette dated 26.10.2021, the "cash capital A change has been made in the regulation on the “discount incentive in Accordingly, "This rate is applied as 75% for the portion of the cash capital increases covered by cash brought from abroad." With this paragraph, it has been envisaged that the rate for the portion of the cash capital increases covered by cash brought from abroad will be applied as 75% instead of the general rate of 50% applied in the interest reduction incentive without any distinction between domestic and foreign capital, and this amendment will come into force for the cash capital increases to be made as of the publication date of the Law. has entered. In addition, in the plan and budget commission minutes where the bill was discussed, it was stated that a tax effect of approximately 200 million TL was expected due to the 25-point increase.
In addition, a special application has been established in the valuation of foreign currencies brought from abroad and put as capital, with Article 280/A of the Tax Procedure Law No. 213 (TPL). With the said regulation; Within the scope of the investment incentive certificate, it is envisaged to finance the investment and, in a sense, to preserve the capital, by excluding the positive exchange rate differences that will occur as a result of the appreciation of the money brought from abroad in order to make direct investments, provided that the conditions specified in the article are met.
Pursuant to Article 13, titled “other matters”, of the General Communiqué No. 495 of the Tax Procedure Law, the said application will essentially be used for the amount paid during the accounting period following the accounting period in which the business is started, of the capital amount committed in the company contracts of the full-fledged capital companies. However, it is possible to benefit from foreign currencies that will be put into companies within the scope of capital increases to be made in accordance with the Law No. 6102 during the said period and that fall within the scope of the article.
On the other hand, with the fourth paragraph of the regulation in clause 10/1-ı of the KVK, the Council of Ministers (President) has been given the authority to increase/decrease the discount rate in certain situations and the Council of Ministers (President) has also given this authority to the Council of Ministers (President) on 26.06.2015 and numbered 2015/7910. It was used by the decision of the Council of Ministers. Accordingly, Article 10.6.4.1 of the Corporate Tax General Communiqué Serial No. 1 The discount rates are explained in the section “In case the capital increased in cash is used for investments in production and industrial facilities with investment incentive certificates and machinery and equipment investments belonging to these facilities and/or land and land investments allocated for the construction of these facilities, the fixed investment amount included in the investment incentive certificate. The discount will be applied by adding 25 points, limited to With this provision, taxpayers who want to benefit from the cash capital reduction can apply the 75% rate, which is formed by adding 25 points to the general rate of 50%, if they use their capital increased in cash for fixed investment expenditures within the scope of the investment incentive certificate.
With the change brought about by the new law provision, an additional 25-point deduction opportunity arises for the cash capital brought from abroad and invested as capital. It is considered that there is a discount opportunity of 100 points (75% + 25% = 100%) thanks to the 25-point additional discount agreed with the BKK No.
