Ministry of Trade Extends Period for Companies' Foreign Exchange Difference Loss Relief
The Ministry of Trade has extended the opportunity for companies to exclude foreign exchange difference losses from capital loss and technical insolvency calculations until 2028.
With a new regulation issued by the Ministry of Trade, the duration of the temporary practice that allows companies not to take into account certain foreign exchange difference losses and some expenses in capital loss and technical insolvency calculations has been extended until January 1, 2028.
Duration of the Regulation Extended
The Ministry of Trade decided to extend the period for the capital loss and technical insolvency calculation relief provided to companies within the scope of Article 376 of the Turkish Commercial Code No. 6102.
With the communiqué published in the Official Gazette dated October 10, 2026, the implementation period, previously set as January 1, 2027, was postponed for another year.
Scope of the Calculation Relief
The regulation allows companies not to take into account foreign exchange difference losses arising from foreign currency liabilities in capital loss calculations.
Additionally, half of certain expenses, such as rental, depreciation, and personnel expenses belonging to the years 2020 and 2021, can also be excluded from these calculations.
Emphasis on Financial Statements by the Ministry
The Ministry stated that this practice does not completely erase existing losses in financial statements, but merely provides relief in evaluations under Article 376 of the Turkish Commercial Code.
It was emphasized that the amounts in question must be shown in the footnotes even if they do not directly appear in the financial statements.