# What is Amortisman?

Country: Turkey

Amortisman is the Turkish term for depreciation: the systematic allocation of the cost of a tangible fixed asset over its useful economic life. Turkey uses a statutory depreciation system where the Revenue Administration publishes a General Communique setting standard useful lives and maximum annual depreciation rates for categories of assets. The straight-line method is the default; the declining-balance method is permitted for movable assets.

## Current rate (2025)

Varies by asset class. Buildings: 2-50 years (2-50% straight-line). Machinery: 5-20 years (5-20%). Vehicles: 5 years (20%). IT equipment: 4 years (25%). Furniture: 5 years (20%). Intangibles: 5-15 years.

## Example

An Ankara manufacturing company purchases machinery worth TRY 2,000,000. Using the standard 10-year straight-line rate (10%/year), it claims TRY 200,000 annual depreciation, reducing taxable profit by TRY 200,000 per year for 10 years. Alternatively, using declining-balance at 20% in Year 1: TRY 400,000 deduction (faster early tax relief).

## How Amortisman works in Turkey

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.

Source: https://www.gib.gov.tr/vergi-usul-kanunu-313-321

## Related terms

- [Kurumlar Vergisi](https://accounts-os.com/tr/glossary/kurumlar-vergisi-tr)
- [Muhasebe](https://accounts-os.com/tr/glossary/muhasebe-tr)
- [Bagimsiz Denetim](https://accounts-os.com/tr/glossary/bagimsiz-denetim-tr)