Non-deductible expenses (KKEG) list for 2026
Expenses recorded in the books but not deductible from the tax base; tax penalties, passenger car limits, thin capitalisation, the finance expense restriction, donations and common mistakes.
An expense actually incurred in the accounts cannot be deducted if tax law does not allow it. These are added back to profit in the return as non-deductible expenses (KKEG). Separating them correctly avoids both overpaying tax and audit risk.
Main non-deductible items
| Item | Note |
|---|---|
| Personal spending of the owner or partners | Any spending unrelated to the business |
| Tax penalties, late payment surcharges and interest | Together with the tax itself |
| Traffic and other administrative fines | Even if incurred during work |
| Corporate and income tax itself | |
| Unpaid SGK premiums | Not deductible until the period paid |
| Undocumented or untrue expenses | |
| Amounts above passenger car limits | Table below |
| Thin capital interest and FX differences | If partner debt exceeds 3 times equity |
| Hidden profit distribution via transfer pricing | Non-arm's-length related-party transactions |
| Finance expense restriction | 10% of the cost of excess borrowing |
| Non-business boat and aircraft expenses | |
| Alcohol and tobacco advertising | |
| Donations above limits or not meeting conditions | |
| Provisions, discounting and depreciation contrary to the Tax Procedure Law | The part above rate and method |
| Severance provisions | Deductible when paid |
Passenger car limits (2026)
| Item | Limit |
|---|---|
| Monthly rent of a leased passenger car | TRY 46,000 |
| SCT + VAT deductible directly on first acquisition | TRY 1,200,000 |
| Depreciable amount (excluding taxes) | TRY 1,380,000 |
| Depreciable amount (taxes added to cost, or used car) | TRY 2,600,000 |
| Fuel, maintenance, insurance and similar | 70% deductible; 30% non-deductible |
Example: monthly passenger car running costs of TRY 20,000 → TRY 14,000 deductible, TRY 6,000 non-deductible. Details: Buying a company car · Car expense limit
Finance expense restriction
10% of interest, FX differences and similar finance costs attributable to borrowings exceeding equity is not deductible (credit institutions excluded).
Example: borrowings TRY 6,000,000, equity TRY 4,000,000, finance expense TRY 600,000 → excess TRY 2,000,000, expense attributable TRY 200,000 → non-deductible TRY 20,000. Finance expense restriction calculator
Common mistakes
- Treating everything paid with the company card as deductible.
- Deducting non-business spending because "there is an invoice".
- Deducting a traffic fine received during work.
- Leaving unpaid SGK premiums as an expense at year end.
- Remembering KKEG only at return time; it should be tracked in a separate account during the year.
- Not checking separately whether VAT on KKEG is deductible.
Corporate tax return · Deductible expenses
Sources: Income Tax Law No. 193 arts. 40–41; Corporate Tax Law No. 5520 arts. 11, 12, 13; VAT Law No. 3065 art. 30; Income Tax General Communiqué No. 332 (2026 passenger car amounts).