Turkey Introduces Notional Interest Deduction on Equity

On 7 April 2015, the Turkish Parliament enacted Law No. 6637 introducing a notional interest deduction for capital contributions. Under the new rules, companies will be allowed a deduction of up to 50% of their deemed interest expense on capital increases registered with the Turkish Trade Registry. The notional interest deduction will also be available based on capital contributions for newly established companies. However, companies operating in the insurance, finance and banking sectors wil…