Tax System In Turkey - Revaluation

Revaluation is a specific method defined in the Tax Procedures Code for the purpose of ensuring a proper appraisal of the value of fixed assets that have been adversely effected by inflation. At their own option, taxpayers are allowed to revalue the cost of depreciable fixed assets and the related accumulated depreciation by multiplying these values by a rate that is announced each year by the Ministry of Finance.

Revaluation is not applied to a fixed asset during its year of acquisition. Intangible rights are not subject to revaluation.

The annual revaluation rate is determined by the Ministry of Finance by taking the month of October as the base month and the average rate of inflation for the preceding year. The rate is announced each year in December. As a result of the revaluation process, the value of a fixed asset and its accumulated depreciation are increased, commensurate with the rate of revaluation. At the end of this process, the net revaluation increase of the