NEWSLETTER-2020-metin

319 TAX LAW 3. In-kind and cash capital that will not be taxed in the event of withdrawal from the business (registered commodity provi- sion, cash capital increases). However, the current rulings issued by the tax administration contains the following comments: 2 • If a company’s capital is decreased because the share certi- ficates received from the company where capital in kind is contributed are given to shareholders as a result of a partial spin-off, and there are also inflation adjustment difference accounts and previous years’ profits that were previously added to capital, provided that the inflation adjustment diffe- rence accounts and previous years’ profits are also included as an element of capital, and are separately seen in the capital increase to be made in the transferee company, this transac- tion may not be considered as withdrawal from the company and shall not be taxed; and • However, if the inflation differences and previous years’ los- ses which are an element of capital in the transferee company are transferred to another account in the transferee company, or withdrawn from the enterprise, or a capital decrease is applied, the amounts withdrawn from the enterprise in rela- tion to inflation differences must be primarily subjected to corporate tax, without being associated with the profit of the period of withdrawal. As a matter of fact, the mentioned approach of the Revenue Administration was placed on the agenda in Article 4 of the Draft Communiqué (Serial No: 13) in the Amendment of the Corporate Tax General Communiqué (Serial No: 1) published on the official web- site of the Revenue Administration on 24.03.2017. In this article, it is regulated that in the event the transferee company shares are given 2 The ruling of Large Taxpayer Office No. 64597866-125[19-2013]-155 24.09.2013 and dated 24.09.2013; No. 64597866-125[19-2013]-107 and dated 23/07/2013, the ruling of İzmir Tax Office Directorate No. B.07.1.GİB.4.35.16.01-125-697 and dated 20.07.2012; the ruling of Large Taxpayer Office No. 64597866- 105[MÜK-298-2013]-168 and dated 05.11.2013, the ruling of İstanbul Tax Office Directorate No. 62030549-125[19-2013/45]-863 and dated 11.04.2014.