The special accounting period in Turkey offers an alternative fiscal year structure for companies whose operational or reporting cycles do not align with the standard calendar year. This system is especially useful for businesses with seasonal income patterns or international reporting obligations, enabling more accurate tax planning and financial reporting.
In this article, we explain what a special accounting period is in Turkey, who may benefit from it, how the application process works, and what tax implications it brings.
What Is a Special Accounting Period?
A special accounting period is a 12-month fiscal year that differs from the calendar year. It can be adopted by companies whose business activities or financial reporting obligations do not align with the standard tax year.
To switch to a special period, taxpayers in Turkey must obtain prior approval from the Ministry of Treasury and Finance by submitting a formal application and providing justification for the request.
📌 Note: Whether using the calendar year or a special accounting period, the fiscal year must always cover 12 months—no more, no less.
Example:
- Calendar year: 01.01 – 31.12
- Special accounting period: 01.04 – 31.03
Who Should Consider a Special Accounting Period in Turkey?
Taxpayers in Turkey normally begin with the calendar year as their default accounting period. However, with official permission, they may switch to a special period that better reflects their operational cycle.
The following types of companies most commonly benefit from this option:
Agricultural Enterprises
Farming and agricultural businesses typically harvest crops during the summer or fall, creating income patterns that do not align with the calendar year. A special accounting period allows for more accurate income and expense matching and better financial reporting.
Educational Institutions (Private Schools, Training Centers)
Education providers in Turkey, such as private schools and tutoring centers, operate on academic calendars that run from fall to early summer. This causes a mismatch between revenue recognition and tax periods. A special fiscal year helps these institutions reflect income based on the actual academic cycle.
Companies with Foreign Shareholders
Many multinational companies or Turkish subsidiaries of foreign firms are required to prepare consolidated financial statements for their parent company. If the parent company’s fiscal year differs from the calendar year, using a special accounting period in Turkey simplifies group-level financial reporting and tax planning.
For such companies, it’s necessary to submit the foreign shareholder’s official fiscal year documentation—either a notarized Turkish translation of the shareholder agreement or an official letter from a relevant public authority abroad.
❗ Note: Self-employed professionals (freelancers, consultants, etc.) are not allowed to adopt a special accounting period in Turkey. Their tax year must be the calendar year.
Tax Implications of the Special Accounting Period in Turkey
Corporate Income Tax
The tax year for corporate taxpayers is normally the accounting period. Therefore, a company using a special accounting period must file its corporate income tax return by the end of the fourth month following the end of that period.
Example:
- Special accounting period: 01.04.2024 – 31.03.2025
- Corporate tax filing and payment deadline: July 31, 2025
Advance Tax
Advance tax in Turkey is calculated quarterly and paid by the 17th day of the second month following each quarter. For companies using a special accounting period, the calendar is adjusted accordingly.
| Quarter | Filing & Payment Deadline (for 01.04–31.03 fiscal year) |
|---|---|
| 1st Quarter (Apr–Jun) | August 17 |
| 2nd Quarter (Jul–Sep) | November 17 |
| 3rd Quarter (Oct–Dec) | February 17 |
Note: With the Law No. 7338 published in the Official Gazette dated October 26, 2021 (No. 31639), the 4th advance tax period was abolished starting from tax returns pertaining to the 2022 fiscal year.
Value-Added Tax (VAT)
VAT taxpayers that use a special accounting period in Turkey must still follow monthly VAT return schedules. However, when it comes to deducting input VAT, it must be recorded in the company’s official books within the relevant special accounting period.
How to Apply for a Special Accounting Period in Turkey?
Companies must submit a written application to the Turkish Revenue Administration (under the Ministry of Treasury and Finance). The request must be supported by:
- A formal letter explaining the reason for the request
- Official documentation from foreign shareholders (if applicable), such as a notarized fiscal year document or confirmation from a relevant authority
Related Advisory: Transfer Pricing and PFA in Turkey
For companies with foreign transactions or intercompany dealings, another important tool is the Advance Pricing Agreement (APA). This mechanism helps prevent transfer pricing disputes and aligns group-wide tax planning.
👉 Learn more about Advance Pricing Agreements in Turkey
Why Work with a Tax Advisor?
Switching to a special accounting period in Turkey is both a strategic decision and a compliance-sensitive process. Each step—justification, documentation, timing—requires precision and expertise.
At Metropol Partners, our tax professionals guide companies through the entire application process, helping them structure their fiscal year for optimal compliance and efficiency.
Need help with your special accounting period application in Turkey?
Contact us today 👉 www.metropolpartners.com/en/contact