Through the Communiqué Amending the Communiqué on the Procedures and Principles Regarding the Implementation of Article 376 of the Turkish Commercial Code (“TCC”), published in the Official Gazette dated October 10, 2026, an amendment has been made to Provisional Article 1 of the Communiqué on the Procedures and Principles Regarding the Implementation of Article 376 of the Turkish Commercial Code (“Communiqué”).
Under this amendment, the period during which certain losses and expenses may be excluded from calculations concerning capital loss or insolvency under Article 376 of the TCC has been extended from January 1, 2027, to January 1, 2028.
According to the provisional article, until January 1, 2028, the entirety of foreign exchange losses arising from foreign currency-denominated liabilities that have not yet been fulfilled, as well as half of the total expenses arising from leases accrued in 2020 and 2021, depreciation expenses and personnel expenses, may be excluded from calculations concerning capital loss or insolvency under Article 376 of the TCC. The relevant amounts must be calculated in a manner that prevents double counting.
For the purposes of these calculations, no accounting entries shall be made in the financial statements prepared pursuant to Article 13 of the Communiqué, and the relevant matter shall instead be disclosed in the footnotes for informational purposes.
The amendment entered into force on October 10, 2026, upon its publication in the Official Gazette, allowing companies falling within the scope of the provisional provision to benefit from this arrangement until January 1, 2028.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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