Recent Developments
Law No. 7571 on Amendments to the Turkish Criminal Code and Certain Laws and to Decree Law No. 631 (“Law No. 7571”), published in the Official Gazette dated 25 December 2025 and numbered 33118, introduces a significant change to the inflation adjustment. With this law, a new provisional Article 37 has been added to the Tax Procedural Law No. 213.
In this legal alert, we provide an overview of this significant amendment, introduced under Law No. 7571, affecting inflation accounting practices.
What has been Introduced by Law No. 7571?
Article 34 of Law No. 7571 adds provisional Article 37 to the Tax Procedural Law No. 213. Accordingly, for the 2025 fiscal year (including advance tax periods), as well as the fiscal years 2026 and 2027 -and for taxpayers with special accounting periods, for the fiscal years ending in 2026, 2027, and 2028- financial statements will not be subject to inflation adjustment, regardless of whether the conditions under bis Article 298 are met. The President of the Republic of Türkiye is authorized to extend these periods (including advance tax periods) by up to three additional fiscal years.
The periods for which inflation adjustment is suspended (including extensions) will be deemed periods in which inflation adjustment conditions are considered not to have arisen.
However, this exemption does not apply to taxpayers exclusively engaged in the trading or manufacturing of processed gold and silver. Such taxpayers must continue to perform inflation adjustment should the statutory conditions be met.
These amendments entered into force on 25 December 2025, the date of publication of Law No. 7571.
Conclusion
Pursuant to the provisional Article 37 added to the Tax Procedural Law No. 213 by Law No. 7571, financial statements will not be subject to inflation adjustment for the fiscal years 2025, 2026, and 2027 (including advance tax periods). Therefore, all taxpayers -except those exclusively engaged in the trading or manufacturing of processed gold and silver- will be able to prepare their financial statements for the relevant years without applying inflation adjustment, regardless of whether the conditions for inflation adjustment are met.
