Turkey extended a temporary exception in company capital-loss and insolvency calculations from 1 January 2027 to 1 January 2028. Certain exchange losses and part of specified historical expenses can remain outside those calculations. The Trade Ministry’s notice changes the deadline while preserving the expense periods and rates, keeping the relief focused on how financial strain is assessed.
Turkey’s Trade Ministry extended the temporary exception used when assessing company capital loss and insolvency until 1 January 2028. The notice published in the Official Gazette on 10 October replaces the previous 1 January 2027 deadline. It changes the transitional provision of the rules implementing Article 376 of the Turkish Commercial Code, which governs companies’ response to capital loss and debts exceeding assets.[1], [2]
The exception covers all exchange losses arising from foreign-currency obligations that have not yet been fulfilled. It also allows half of the total leasing, depreciation and personnel expenses accrued in 2020 and 2021 to be left out of the calculations. Those expense periods and the proportion remain unchanged. The extension preserves the existing scope rather than adding every expense incurred in later years.[1], [2]
Capital loss concerns the portion of a company’s capital and legal reserves left uncovered by losses. Insolvency concerns assets being insufficient to meet debts. The temporary adjustment affects how those conditions are calculated. Alomaliye describes the exclusions as an optional facility, with adjustments shown in informational footnotes. The notice took effect on publication, and implementation of its provisions is assigned to the Trade Minister.[1]
