THE INTEREST DEDUCTION CALCULATED ON CASH CAPITAL INCREASES FOR THE YEAR 2025 IS 45.34%.

In the cash capital increase interest deduction application, the "Weighted Average Interest Rate Applied to Commercial Credits Extended by Banks (TRY-denominated, Excluding Corporate Overdraft Accounts and Corporate Credit Cards)" announced by the Central Bank of the Republic of Turkey (CBRT) for the year in which the deduction is utilised is taken into account.

The most recently announced commercial credit interest rate (TRY-denominated, excluding corporate overdraft accounts and corporate credit cards) for 2025 on the CBRT website is 45.34%.

Accordingly, the rate of 45.34% will be used in the interest deduction application calculated on cash capital increases for 2025.

Some reminders regarding the application

Article 10(1)(ı) of the Corporate Tax Law stipulates that capital companies – excluding those in finance, banking and insurance and state economic enterprises – may deduct from corporate income 50% of the amount calculated up to the end of the relevant fiscal period on cash capital increases registered with the trade registry, using the CBRT commercial loan interest rate for the year in which the deduction is utilised (75% for the portion financed by cash brought from abroad).

Furthermore, pursuant to Section 10.6 of the General Communiqué No. 1 on Corporate Tax: for capital increases made as of 5/7/2022, the deduction applies separately for five fiscal periods including the period in which the decision on the capital increase is registered; companies that increased capital before 5/7/2022 or were newly established may continue to benefit from the deduction separately for five fiscal periods including the 2022 fiscal period.

As the CBRT commercial credit interest rate for 2025 is taken into account, this deduction may only be utilised in the 2025 corporate tax return and/or the fourth provisional tax period.

Amounts that cannot be deducted in the relevant fiscal period due to insufficient income may be taken into account in determining the tax base in subsequent fiscal periods without any indexation.

Respectfully.