Tax System In Turkey - Depreciation

The Tax Procedures Code contains rather liberal provisions with respect to depreciation. According to the definition, depreciation is set aside on assets that are used in the entity for more than one year and that are subject to wear and tear. (Land is not subject to depreciation.) Taxpayers may determine the depreciation rate for all of their fixed assets, excluding buildings, provided that such rates do not exceed 20% on a straight line basis. Previously this rate was 25%; it was reduce to 20% effective 1 January 1995. Fixed assets that are subject to depreciation at rates higher than this and the applicable rates are announced in general communiques issued by the Ministry of Finance. For example, the rate of depreciation on factory plants and workshops is 4%; the rate applicable to administrative buildings and social facilities, is 2% .