Turkey extends regulatory relief for companies until 2028

The Turkish Ministry of Trade has extended a temporary regulatory relief for companies regarding the calculation of capital loss and insolvency under Article 376 of the Turkish Commercial Code. According to a communiqué published in the Official Gazette on October 10, 2026, the deadline for this application has been moved from January 1, 2027, to January 1, 2028.

Under this regulation, companies may exclude the entirety of exchange rate losses arising from unrealized foreign currency liabilities when assessing capital loss or insolvency status. Additionally, half of the total expenses, depreciation, and personnel costs arising from leases accrued in 2020 and 2021 may also be excluded from these calculations.

The measure aims to assist businesses in managing their financial structures and maintaining sustainable operations by limiting the impact of specific loss and expense items on their balance sheet evaluations. The regulation does not erase balance sheet losses but changes how they are calculated for specific legal thresholds.