banka-kredileri-muhasebe-ve-vergi-rehberi - PDF to Podcast
Published on Nov 03, 2026
Description:
Welcome to Ledger Notes. I'm Elif, and today we're walking through the accounting and tax treatment of a multi-year bank loan under Turkish rules.
And I'm Mehmet. We'll keep it practical: the legal basis, the TDHP accounts, a worked example, and the audit points that tend to cause trouble.
Our source is a technical guide covering VUK Article 285, TDHP, and the corporate tax financing expense limitation. We'll translate the key points into plain English.
The guide starts with VUK Article 285: debts are valued at their book value, while debts under deposit or credit agreements are considered together with interest calculated up to the valuation date.
So how does that look in the chart of accounts for a loan longer than one year?
Under TDHP, a bank loan with a term over one year is first tracked in account 400, Banka Kredileri, in the liabilities group.
At the balance sheet date, principal installments and interest that fall due within one year are reclassified through year-end inventory entries to account 303, Uzun Vadeli Kredilerin Anapara Taksitleri ve Faizleri.
That reclassification is easy to overlook, but it changes the balance-sheet presentation from long-term to current liabilities.
The guide also applies the accrual principle: unpaid but realized loan interest for the period up to the balance sheet date is recorded as current-year financing expense under 780 Finansman Giderleri, with the offsetting credit to 303.
For borrowing costs tied to a fixed asset, VUK General Communiqué No. 163 requires capitalization of financing expenses until the end of the period in which the asset is activated.
Interest relating to later years may either be added to cost or written directly to expense, at the taxpayer's option.
Then there is the critical warning under KVK Article 11/1-i. For corporate taxpayers whose foreign resources exceed equity, 10% of the financing expenses attributable to the excess is treated as a non-deductible expense, or KKEG.
Interest and foreign-exchange differences capitalized into investment cost are not subject to that financing expense limitation.
That carve-out makes the capitalization decision even more important, because it affects both the balance sheet and the deductible amount.
The guide's example is a 3,000,000 TL loan drawn on 1 April 2026, with a three-year term and equal annual principal payments of 1,000,000 TL every 31 March.
The annual interest rate is 24%, which works out to 60,000 TL per month, or 720,000 TL per year. Each installment payment is therefore 1,720,000 TL.
Total principal is 3,000,000 TL, total interest is 2,160,000 TL, and total payments come to 5,160,000 TL.
Let's follow the entries in sequence, because the timing is where the accounting story becomes clear.
On 1 April 2026, the drawdown is simple: debit 102.01 Bankalar for 3,000,000 TL and credit 400.01 Banka Kredileri for the same amount.
At 31 December 2026, the 2027 principal installment is moved from 400.01 to 303.01: debit 400.01 and credit 303.01 for 1,000,000 TL.
Also at 31 December 2026, nine months of accrued interest is booked: debit 780.01 Finansman Giderleri for 540,000 TL and credit 303.02 for the same amount.
On 31 March 2027, the payment entry debits 303.01 for 1,000,000 TL, debits 303.02 for the 540,000 TL accrued interest, debits 780.01 for the 180,000 TL three-month interest, and credits 102.01 for 1,720,000 TL.
At the end of 2027, the guide repeats the pattern: reclassify the 2028 principal of 1,000,000 TL to 303.01 and accrue nine months of interest of 540,000 TL through 780.01 and 303.02.
The final payment on 31 March 2029 clears the remaining principal and accrued interest and closes the loan, leaving the 400 and 303 accounts fully cleared.
What I like about this example is that it shows both the balance-sheet reclassification and the income-statement timing in one continuous trail.
The guide's risk matrix starts with the financing expense limitation. If the 10% KKEG adjustment is missed, the corporate tax base is understated and a reassessment can follow, with tax penalty and late interest.
A second risk is failing to transfer principal and interest falling due within one year to account 303 at period end. The guide links that to a special irregularity penalty under VUK Article 353 for breach of accounting standards and balance-sheet presentation rules.
A third risk is expensing first-year interest on a loan used to acquire a fixed asset. The guide says the cost must be corrected and the related depreciation disallowed.
Finally, the guide flags related-party and transfer-pricing exposure where a bank loan is on-lent to group companies without interest or at non-arm's-length terms under KVK Articles 12 and 13.
In that case, the guide describes a reassessment and VAT or corporate tax adjustment, with financing expenses denied based on an arm's-length interest rate.
So the audit trail is not just about debits and credits. It is about classification, documentation, and the tax character of the expense.
If you remember one thing, remember the two-step discipline: keep long-term debt in 400 until the current portion is identified, then move it to 303 with the related accrued interest.
And separately test the financing expense limitation, unless the borrowing cost has been capitalized into investment cost.
That's the practical wrap-up. Thanks for listening to Ledger Notes.
Until next time, keep your ledger clean and your tax positions documented.