Corporate Tax Deduction for Venture Capital Investment Funds (GSYF) in 2025

Over the years, we have observed continuous changes in tax legislation, including tax incentives and revisions. Recently, the most prominent tax deduction has been the advantage granted to taxpayers who invest in Venture Capital Investment Funds (GSYF), introduced to promote entrepreneurship. Since the topic is tax reduction, there has naturally been growing interest in GSYF funds. In today’s inflationary environment, it is also clear that the search for alternative investments is directly linked to incentives and obligations set forth in legislation.

Over the years, we have observed continuous changes in tax legislation, including tax incentives and revisions. Recently, the most prominent tax deduction has been the advantage granted to taxpayers who invest in Venture Capital Investment Funds (GSYF), introduced to promote entrepreneurship. Since the topic is tax reduction, there has naturally been growing interest in GSYF funds. In today’s inflationary environment, it is also clear that the search for alternative investments is directly linked to incentives and obligations set forth in legislation.

Provisions in the Corporate Tax Law and the Tax Procedure Law regarding GSYF deductions create opportunities for corporate taxpayers in terms of tax planning.

Who Can Benefit from the GSYF Tax Deduction, and How?

Article 325/A of the Tax Procedure Law (VUK), titled “Venture Capital Fund,” defines GSYF as follows:

“A venture capital fund may be allocated from the related period’s profit or declared income, for the purpose of contributing to venture capital investment trusts established or to be established in Turkey under the supervision of the Capital Markets Board, or for the purchase of venture capital investment fund shares.”

According to the same article:

• Up to 10% of profit or declared income can be allocated as a fund.
• The fund amount must not exceed 20% of equity capital.

Both conditions must be met simultaneously in order for taxpayers to benefit from the deduction.

Taxpayers will be able to deduct the amount of investment they make in 2025 from their 2024 corporate tax base.

Taxable Income Calculation Formula

[Commercial balance sheet profit (loss) + non-deductible expenses – prior year losses – all deductions and exemptions]

For example:
A taxpayer with a profit of 50,000,000 TL would be limited to:

• 10% profit limit = 5,000,000 TL
• 20% equity limit = 20,000,000 TL

Since the profit-based limit (10%) is lower, the taxpayer can deduct 5,000,000 TL by investing this amount in GSYF.

Thus, instead of paying corporate tax on 50,000,000 TL, the tax base becomes 45,000,000 TL for 2024, thanks to the 2025 GSYF investment.

Important Points

• According to VUK 325/A, the GSYF allocation must be recorded in a special fund account in the liabilitiessection and determined by the end of the fiscal year.
• The allocation must be transferred to GSYF by the end of the fiscal year; otherwise, the deduction will be reversed and the unpaid tax will be collected with interest.
• Each year’s GSYF allocation is considered separately. Previous allocations cannot be deducted again.
• The total allocation must never exceed 20% of equity capital.

Why It Matters

By making GSYF investments in 2025, taxpayers can:

• Protect themselves against inflation,
• Diversify into alternative investment tools,
• Support the entrepreneurship ecosystem, and
• Gain tax advantages by reducing their 2024 corporate tax base.

Boğaziçi Ventures GSYF Options for 2025

Taxpayers who want to benefit from these incentives in 2025 can invest in Boğaziçi Ventures’ Venture Capital Investment Funds:

• BV Growth II: Focused on AI-driven technology companies, aiming for significant equity stakes and long-term high returns.
• Sinerji: Pursues a secondary investment strategy, acquiring discounted shares from founders and angel investors, with interim dividend distribution potential.
• GREAT Pre-IPO: Targets entertainment and F&B companies with strong brands and customer bases, consolidating majority stakes (≥51%) to drive efficiency and IPO readiness.
• Liquidity Trading Pre-IPO: Invests in Turkey’s leading statistical arbitrage tech company, with plans for IPO or direct sale within 5 years.