Financing expense restriction calculation 2026 (FGK 10%)
Instantly see how much of your 10% financing expense is non-deductible. Get your results in seconds based on the 2026 FGK rates.
Important
This tool is for information only and produces approximate results based on generally accepted calculation logic. It does not replace professional assessment of a specific case; the final calculation should be made by an authorised professional.
What is the Financial Expense Restriction?
Financing expense limitation refers to the non-deductibility of a certain portion of the financing expenses related to the external resources used by businesses from the tax base. Under this regulation implemented in Turkey, 10% of the interest and similar financing expenses related to the loans used by companies are not accepted as deductible expenses. Thanks to the financing expense limitation calculator, businesses can easily calculate the non-deductible expense amount within the scope of this practice.
How to Calculate Financial Expense Limitation?
When calculating the financial expense restriction, it is checked whether the enterprise's liabilities exceed its equity. If liabilities exceed equity, a certain portion of the financial expenses cannot be deducted from the tax base.
The general calculation logic is as follows:
The company's liability and equity status is determined
Financial expenses are identified
10% of the relevant expenses are considered non-deductible
As a result of this practice, the determined amount is added to the tax base, and the tax to be paid by the company is calculated.
Which Companies Are Affected by the Financial Expense Restriction?
Financing expense limitation can especially affect companies with high credit or debt utilization. If the enterprise's liabilities exceed its equity, a certain portion of the financing expenses is not accepted as a deductible expense in the tax calculation.
For this reason, the financing expense limitation practice can directly affect the tax base of companies and, consequently, the corporate tax payable.