On 23 February 2017, Decree No. BLKB2016/803M of 20 January 2017 on the application of the participation exemption (the decree) was published in Official Gazette No. 5003.
The decree updates and replaces Decree No. DGB2010/2154M with effect from 24 February 2017 and has retroactive effect to 20 January 2017.
The main clarifications and amendments to the decree relate to:
- The treatment of currency gains and losses (article 13(7) of the Corporate Income Tax Law (CITL))
- The conversion of written-down debt into equity (article 13ba of the CITL)
- Loss evaporation in situations where a foreign permanent establishment was converted into a subsidiary/participation (former article 13c of the CITL)
- Liquidation losses (article 13d(10) of the CITL)
- Legal mergers and the deemed acquisition price of shares (article 13k(2) of the CITL)
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