Corporate Income Tax / Legal changes after January 2024


Starting from January 2024 related party transactions must adhere to market principles. If the conditions of taxable profits from controlled transactions align with those that would apply between independent parties in similar circumstances, they are considered in line with market principles. Rules and procedures for implementing these guidelines are approved under the guidance of the finance minister.

Regarding long-term contracts:

A long-term contract, intended for production, installation, construction, or services, with a duration exceeding 12 months, must recognize revenues for personal and corporate income tax based on the completed contract portion in the relevant tax year.

The completion percentage is determined by referring to the cost ratio of the current year to estimated total expenses or by adhering to national and international accounting standards.

Tax-deductible expenses for long-term contracts are considered in the tax year they are incurred, following accounting standards set by the finance minister.