What is Amortisman?

Amortisman (depreciation) in Turkey is governed by Vergi Usul Kanunu (VUK) Articles 313-321 and a series of General Communiques issued by the Revenue Administration that specify useful lives for hundreds of asset categories. The Turkish depreciation system is more prescriptive than Western European equivalents.\n\n**Standard useful lives and rates**\nThe Revenue Administration publishes useful lives in a table organised by asset type and industry. Key categories:\n- Buildings (industrial): 40-50 years (2-2.5%)\n- Buildings (commercial): 25-50 years (2-4%)\n- Machinery and equipment (general): 10 years (10%)\n- Machinery (precision instruments): 5 years (20%)\n- Motor vehicles (commercial): 5 years (20%)\n- Office equipment and furniture: 5 years (20%)\n- Computer hardware: 4 years (25%)\n- Software (acquired): 4 years (25%)\n- Leasehold improvements: lease period (up to 5% minimum/year)\n\n**Methods permitted**\n1. Normal Amortisman (straight-line): equal annual charges over the useful life. This is the default and must be applied consistently once chosen.\n2. Azalan Bakiyeler Usulu (declining-balance): permitted only for movable assets. The rate is twice the straight-line rate, applied to the reducing book value. Maximum rate: 50%. The business must switch to straight-line in the year when straight-line gives a higher charge than declining-balance.\n\n**Year of acquisition rule**\nAssets acquired mid-year are depreciated from the acquisition month. The first year's depreciation is calculated proportionally (monthly pro-ration). If acquired after 1 October, no depreciation is claimed in the acquisition year (it starts the following year).\n\n**Minimum threshold**\nAssets costing below TRY 6,900 (the 2025 threshold, adjusted annually) can be expensed immediately rather than capitalised and depreciated. This threshold is significantly lower than UK or EU equivalents.\n\n**R&D deduction (Ar-Ge indirimi)**\nQualifying R&D expenditure can be deducted 100% immediately (plus an additional 50% bonus deduction under Ar-Ge incentive laws), bypassing the normal capitalisation and depreciation route. Technology development zone companies can also benefit from accelerated 5-year depreciation on software and intangibles.\n\n**Investment incentive depreciation**\nCompanies holding investment incentive certificates can claim accelerated depreciation on certificated assets — in some cases 100% in the year of acquisition — as part of the investment incentive package. The specific rate depends on the region and incentive type.