Extension of the Deadline Regarding Amendments to the Communiqué With Respect to Capital Loss and Negative Equity
The Communiqué (the “Amending Communiqué”) published in the Official Gazette on November 8, 2022, extended the deadline provided under Provisional Article 1 of the Communiqué on the Procedures and Principles Regarding Implementation of Article 376 of the Turkish Commercial Code No. 6101 (the “Implementation Communiqué”).
The Implementation Communiqué was previously amended on December 26, 2020, and certain loss items were excluded from the calculation of capital loss or negative equity until January 1, 2023.
The Ministry of Trade expressed on various occasions that the exception is foreseen as a temporary measure to protect the economic actors against the impact of the Covid-19 pandemic. Although such impacts show signs of easing with the recovery of the Turkish economy and stabilized foreign exchange rates of the Turkish Lira, the Ministry prefers maintaining Provisional Article 1 of the Implementation Communiqué. This time, the application period has been extended until January 1, 2024.
Accordingly, joint stock companies, limited liability companies and limited partnerships divided into shares will be able to exclude all the foreign exchange losses, and half of the expenses arising from leases, amortization, and personnel expenses accrued in 2020 and 2021 in the capital loss and negative equity calculation in their balance sheets until the end of the fiscal year 2023. Please refer to our article for more information about the implementation of Article 376 of the Turkish Commercial Code.
Tagged with: Commercial, Corporate, Commercial & Corporate, Ministry of Trade, Joint Stock Company, Limited Liability Company, Limited Partnerships, Turkish Commercial Code, Gün + Partners, Görkem Bilgin, Latif Aktaş
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