TAX BASIS FINANCIAL STATEMENTS FOR THE 2025, 2026 AND 2027 FISCAL YEARS WILL NOT BE SUBJECT TO INFLATION ADJUSTMENT

It has been definitively established that inflation adjustment will not be applied as of year-end pursuant to Article 34 of the Law No. 7571 published in Official Gazette (dated 25 December 2025), through the addition of Provisional Article 37 to the Tax Procedural Law.

Accordingly;

• Regardless of whether the conditions for inflation adjustment are met, tax basis financial statements relating to the 2025 fiscal year as well as the 2026 and 2027 fiscal years will not be subject to inflation adjustment.
• In the 2026 and 2027 fiscal years, no inflation adjustment will be applied for provisional (advance) tax periods either, regardless of whether the conditions are met.
• For taxpayers with a special accounting period, no inflation adjustment will be applied for accounting periods ending in 2026, 2027 and 2028.
• The President is authorized to extend the periods during which inflation adjustment will not be applied, including provisional tax periods, for up to three fiscal years.
• Regarding the periods for which inflation adjustment will not be applied (including those extended under this authority), revaluation may be applied to depreciable assets for these periods pursuant to paragraph (Ç) of Repeated Article 298 of the Tax Procedure Law.

Yours sincerely.