Circular - 2023 - 61 - Amendment to the Rediscount Rate for Receivables and Notes Payable
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Date |
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01.11.2023 |
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Number |
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2023 – 61 |
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Subject |
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Amendment on Rediscount Rates for Receivables and Debt Securities |
Amendment on Rediscount Rates for Receivables and Debt Securities
The Communiqué on "Determination of Interest Rates to be applied in Rediscount and Advance Transactions" was published in the Official Gazette dated 1/11/2023 and numbered 32356.
With the Communiqué, the discount interest rate to be applied in rediscount transactions to be made against bills with a maximum of 3 months to maturity has been determined as 35.75 per cent per annum; the interest rate to be applied in advance transactions has been determined as 36.75 per cent per annum.
Accordingly, in the determination of provisional and annual income and corporate tax bases, the interest rate of 36.75 per cent per annum should be taken into account in the calculation of the rediscount of receivable and payable notes as of 1.11.2023 According to the General Communiqué on Tax Procedure Law No. 238, the internal discount method should be applied during rediscount transactions.
As it is known, according to the Tax Procedure Law, receivables or payables are valued at their nominal value. However, taxpayers other than banks, bankers and insurance companies can value their receivables and payables according to their discounted values on the valuation day by applying rediscount if they wish.
According to Article 285 of the Tax Procedure Law, taxpayers who revalue their outstanding notes receivable to the value of the valuation day are obliged to subject their outstanding notes payable to the same procedure.
Banks, bankers and insurance companies are obliged to revalue their receivables and payables to the value of the valuation day with the official discount rate of the Central Bank of the Republic of Turkey and the interest rate applied in their transactions.
It is a legal obligation to apply the official discount rates of the Central Bank of the Republic of Turkey in cases where the interest rate is not specified on the promissory note during the revaluation of the receivables and payables linked to the promissory note to their value on the valuation day.
However, in the VUK Circular No.64 dated 30.4.2013 and numbered 64 prepared by the Revenue Administration; it is explained that cheques have the feature of being due in terms of tax applications in terms of their real nature and in this respect, it is possible to benefit from the rediscount application foreseen to be applied for receivables and payables attached to the promissory note that are not due on the valuation day of the cheques with advanced issue date.
Determination of Interest Rates to be applied in Rediscount and Advance Transactions
Sincerely...
Note: This circular is for information purposes only. Please consult a professional advisor regarding the subject matter of this circular.