Turkish Cash Capital Increase Deduction Calculator
Calculate the notional interest deduction on cash capital increases under Turkish Corporate Tax Law art. 10/1-(ı).
Things to keep in mind
- Finance, banking and insurance companies and state economic enterprises are excluded.
- Increases funded by retained earnings, reserves, inflation adjustment differences or in-kind contributions do not qualify.
- The interest rate is published yearly by the central bank and is a user input.
- Increased shares exist for listed companies, incentive-certified investments and cash brought from abroad; the tool applies the standard share only.
Calculator
Result
Enter the values and press Calculate to see the result here.
About this tool
Under Turkish Corporate Tax Law art. 10/1-(ı), capital companies may deduct from corporate income a share of the amount computed by applying the central bank commercial loan rate to registered cash capital increases or cash-paid founding capital. The deduction is pro-rated by months in the year of registration and applies for that year and the following four years. Any part exceeding the year's income is lost.
How to use
- Enter the cash capital increase.
- Enter the latest TL commercial loan rate published by the central bank for the year.
- Enter the months from registration to year end in the first year, 12 afterwards.
- Enter corporate income before the deduction and press Calculate.
Notes
Deduction = cash capital increase × interest rate × deduction share × months / 12. Shares and the corporate tax rate are kept with their source and effective date.
Frequently asked questions
For the year the increase is registered and the following four years, each year separately.
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Last updated: September 30, 2026