Can losses of previous year not shown in the corporate tax return in the relevant period be deducted in the following periods?
- Since the losses of previous year are deducted in the determination of the corporate tax base, the amounts for each year must be shown separately in the corporate tax return.
Although there is a profit in the relevant accounting period and there is loss of previous year that can be deducted, it is not possible for the taxpayers who do not take the losses of previous year into account, to set off the losses of previous year in the years following this period. Moreover, it is possible to deduct the losses of previous year, which are not subject to deduction in the corporate tax return of the relevant year, by submitting a correction declaration until the end of the accounting period of the date of submitting the tax return. However, in the following period, losses of previous year, which are not subject to deduction for this period, cannot be subject to deduction by submitting a correction statement.
Source: Revenue Administration of Turkey – Translated by: Karen Audit
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