According to the Corporate Income Tax Law, the loss by the tax report means the excess amount of expense upon subtracting the costs that meet the conditions and requirements of the law. The loss carried forward in the future which is confirmed by the relevant tax authority is calculated by deducting 50% of the total amount of taxable income for each year following the year to which the tax loss occurred for the next four years.

The “Regulation on calculating and confirming the corporate loss to be carried forward” has been approved by Decree A/265 by the Chairman of the General Tax Authority on December 30, 2019.

According to the Regulation, the losses to be carried forward in a specific year shall not exceed  50% of taxable income of that year and shall not be carried forward in the years following the four consecutive years.

In accordance with the regulation, losses shall not be carried forward in the following cases:

• Upon the expiration, termination or return of mineral licenses;
• In case of a corporate restructuring, remaining un-deducted loses shall not be carried forward in accordance with Article 19.8 of the Corporate Income Tax Law;
• Losses incurred by taxpayers in the previous years' tax reports by the use of simplified tax systems shall not be carried forward in the future.

Please click here for the Regulation.