Abstract:

Article 5/1-e of the Corporate Tax Law No. 5520 stipulated that 50% of the gains arising from the sale of immovable properties held in assets for at least two full years are exempt from corporate tax. This exception, which is particularly important for corporations, was abolished by Law No. 7456. However, in the Provisional Article 16 added to the Corporate Tax Law by Article 22 of Law No. 7456, it is stipulated that in the sale of immovable properties included in the assets of the corporations before July 15, 2023, the immovable gain exemption will continue to be applied as 25%. The fact that the immovable property sales gain exemption can be applied for immovable properties recorded in the assets of the corporation before 15.07.2023 has caused the exemption to maintain its importance for corporations that do not want to be exposed to fictitious profits arising from high inflation. For this reason, in this study, firstly, information will be given about the immovable property sales gain exemption and the practice of the tax administration regarding the aforementioned exemption will be examined by taking into consideration of the tax administration’s special instructions.

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