No Tax on Foreign Currency Gains: 2.2 Million Companies Face Bankruptcy Risk at High Interest Rates

Tax Exemption on Foreign Currency Gains Turkey’s tax policy currently exempts companies from paying tax on profits earned in foreign currencies.
This exemption has benefited roughly 2.2 million firms, but it also reduces government revenue at a time when fiscal pressures are mounting.
Impact of High Interest Rates The central bank’s policy rate sits at 37 %, sharply increasing borrowing costs for businesses.
High rates make long‑term financing difficult and elevate the risk of insolvency, especially for firms that rely heavily on external debt.
Economic Indicators Projections for 2025 show a $64.4 billion external trade deficit, while the 2026 budget forecasts interest expenses of 2.042 trillion Turkish lira.
These figures suggest a widening fiscal gap and threaten the sustainability of the economy.
Proposed Policy Measures To ease the burden on companies and support the national budget, several policy options have been suggested: Eliminate fuel taxes (ÖTV and KDV) to reduce operating costs.
Apply a 40 % additional tax on imported goods, targeting an extra $15 billion in revenue.
Introduce a fixed, predictable subsidy to cap diesel prices, lowering logistics expenses for businesses.
These measures aim to lower corporate logistics costs while contributing to household budgets and promoting long‑term economic stability in Turkey.