TAX CALCULATIONS
Financing Expense Restriction Calculator
Calculate the finance expense to be treated as non-deductible based on equity, borrowed resources and finance expense.
Calculation inputs
Enter amounts in TL. Results update automatically.
How was this calculated?
1
Excess borrowing= Total Borrowed Resources − Equity
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2
Excess borrowing ratio= Excess borrowing / Total Borrowed Resources
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3
Finance expense included in calculation= Total Finance Expense − special deductible amount
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4
Finance expense attributable to excess borrowing= Finance expense included in calculation × Excess borrowing ratio
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5
Non-deductible finance expense= Finance expense attributable to excess borrowing × 10%
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Information
- The restriction may arise for in-scope taxpayers whose borrowed resources exceed their equity.
- Negative equity is treated as 0 in this calculation.
- Finance expenses added to investment cost are excluded from the restriction.
Points to consider
- Some expenses not linked to borrowed resource use may fall outside the scope.
- Finance expenses related to thin capitalization are assessed separately.
- The business's specific circumstances may require a separate legal and tax assessment.
Source: Corporate Income Tax Law No. 5520, Art. 11/1-i and Corporate Income Tax General Communiqué 11.13