AMORTIZATION APPLICATIONS ON TANGIBLE ASSETS WITHIN THE CONTEXT OF THE LAW NO.7338: A COMPARATIVE EXAMINATION IN THE FRAMEWORK OF THE TAX PROCEDURE LAW AND LMSE FRS

Abstract

With the Law No. 7338, which was published in the Official Gazette on 26.10.2021, significant changes occurred in the amortization and valuation provisions of the Tax Procedure Law. In this context, the aim of this study is to reveal the similarities and differences by comparatively examining the amortization application, which is a legal taxpayer right and an important tax planning tool, limited to tangible assets, in the context of the Law No. 7338 and the provisions of the different Tax Procedure Law and LMSE FRS regulations and to present the sample case studies of amortization calculations. In this context, in the study the concept of amortization, the subject of amortization in tangible fixed assets, the first acquisition, the amount subject to amortization, the period and rate of amortization, the amortization methods and finally the amortization practices in tangible fixed assets have been studied comparatively. Thus, although there are some similarities between the two regulations regarding the amortization application, after the Law No. 7338, it is also possible to say that there are still significant and major differences due to the purpose attributed by both regulations to amortization.