No Inflation Adjustment Will Apply for FY 2025, 2026, and 2027

Law No. 7571 on Amendments to the Turkish Criminal Code and Certain Laws and to Decree Law No. 631 (“Law No. 7571”), published in the Official Gazette dated 25 December 2025 and numbered 33118, introduces a significant change to the inflation adjustment. With this law, a new provisional Article 37 has been added to the Tax Procedural Law No. 213.

Accordingly, for the 2025 fiscal year (including advance tax periods), as well as the fiscal years 2026 and 2027 -and for taxpayers with special accounting periods, for the fiscal years ending in 2026, 2027, and 2028- financial statements will not be subject to inflation adjustment, regardless of whether the conditions under bis Article 298 are met. The President of the Republic of Türkiye is authorized to extend these periods (including advance tax periods) by up to three additional fiscal years.

However, this exemption does not apply to taxpayers exclusively engaged in the trading or manufacturing of processed gold and silver. Such taxpayers must continue to perform inflation adjustment should the statutory conditions be met.

These amendments entered into force on 25 December 2025, the date of publication of Law No. 7571.

Periods specified as not subject to inflation adjustment (including periods extended under the authority) are considered periods in which the conditions for inflation adjustment have not been met; therefore, during such periods, revaluation may be performed for depreciable economic assets in accordance with paragraph (Ç) of Article 298 of the Tax Procedure Law. (The revaluation rate for 2025 has been announced as 25.49%. In this case, the rate to be used for revaluation in 2025 will be 25.49%).

Regards.