2026/1
Extension of Filing and Payment Deadlines for Local Minimum Top-up Corporate Income Tax Returns
| Circular Type | English Tax Circular |
|---|---|
| Number | 2026/1 |
| Date | 13.01.2026 |
| Subject | Extension of Filing and Payment Deadlines for Local Minimum Top-up Corporate Income Tax Returns |
This circular outlines the extended filing and payment deadlines applicable to Local Minimum Top-up Corporate Income Tax returns and the compliance steps taxpayers should consider.
1. Executive Summary
This circular outlines the extended filing and payment deadlines applicable to Local Minimum Top-up Corporate Income Tax returns and the compliance steps taxpayers should consider.
2. Legal Background
The legal framework should be reviewed together with the relevant law, communiqué, presidential decree, secondary legislation, Revenue Administration guidance and official implementation announcements. The effective date, transitional provisions and the scope of taxpayers covered by the regulation must be analysed separately.
3. Taxpayers Potentially Affected
The regulation may affect resident companies, permanent establishments, multinational enterprise groups, financial institutions, holding companies, service companies, manufacturers, exporters, importers and other entities depending on their tax status, transaction profile and reporting obligations.
4. Corporate Tax Impact
Companies should assess whether the regulation changes taxable income, exemptions, deductions, carry-forward losses, withholding taxes, minimum tax computations, tax credits, advance tax calculations or annual corporate income tax return disclosures.
5. Accounting and Financial Reporting
Accounting teams should determine whether the change requires new ledger accounts, reclassification entries, deferred tax calculations, provision updates, reconciliation procedures or additional disclosures in statutory and management reporting.
6. Filing and Payment Calendar
All filing, notification, certification and payment dates should be entered into the internal tax calendar. Where an extension applies, companies should also document the original deadline, the revised deadline and the internal approval date.
7. Documentation Requirements
Tax positions should be supported by agreements, invoices, board resolutions, calculations, working papers, legal opinions, tax returns, electronic filing receipts and other relevant records.
8. Internal Control Considerations
A written control framework should assign responsibilities to tax, finance, accounting, legal, treasury, human resources and information technology teams where applicable.
9. Risk Assessment
Potential risks include late filing, underpayment, incorrect classification, insufficient documentation, inconsistent disclosures, tax inspection exposure, penalties and late payment interest.
10. Recommended Action Plan
Companies should identify affected transactions, appoint responsible teams, update internal procedures, complete technical calculations, obtain management approval and retain a complete audit trail.
11. Scope of Local Minimum Top-up Tax
The first step is to determine whether the group falls within the applicable multinational enterprise revenue threshold and whether the Turkish constituent entities are within the scope of the local minimum top-up tax rules.
12. Group and Entity Mapping
The ultimate parent entity, intermediate parent entities, partially owned parent entities, permanent establishments and excluded entities should be mapped before any return is prepared.
13. GloBE Income and Covered Taxes
The calculation requires a detailed reconciliation between financial accounting income, adjusted GloBE income, current tax expense, deferred tax attributes and covered taxes.
14. Effective Tax Rate Calculation
The jurisdictional effective tax rate should be calculated using consistent source data, controlled adjustments and documented assumptions.
15. Safe Harbours and Elections
Available transitional safe harbours, simplified calculations and elections should be reviewed before the full calculation methodology is applied.
16. Filing Extension Controls
The extended deadline should not delay data collection. Companies should use the additional time to validate source systems, intercompany data, tax attributes and group reporting packages.
Frequently Asked Questions
What is English Tax Circular 2026/1 about?
Extension of Filing and Payment Deadlines for Local Minimum Top-up Corporate Income Tax Returns
Who should review this circular?
Finance directors, tax managers, accounting teams, legal teams, certified public accountants, auditors and executives responsible for tax governance should review it.
Is this page an official legal opinion?
No. It is a general information page and does not replace the official legal text or professional tax advice.
What should companies do before implementation?
Companies should verify the final official text, identify affected transactions, document calculations, update internal controls and obtain professional advice where needed.
Yours faithfully,
Seaacademy IK Services
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