Turkey Tax Agency Issues Guidance on Deducting Expenses, Depreciation of Passenger Cars

The Turkish Revenue Administration Dec. 11 issued Publication No. 532, regarding the deduction of expenses and depreciation amounts for passenger cars rented or acquired for commercial or self-employment purposes. Topics covered include that: 1) for 2024, up to 26,000 Turkish lira (US$745) of monthly rental fees for passenger cars can be expensed, with any excess included in commercial profits; 2) VAT on rental amounts exceeding this limit can’t be deducted in income or corporate tax calculations; 3) VAT-exempt businesses like banks and insurance companies can expense the 26,000 Turkish lira when calculating net income; 4) VAT taxpayers can expense the ...