Regarding General Journal Closing Approval

The procedures and principles that should be considered by legal entities and real person traders are partially regulated under the tax laws and partially under the provisions of 6102 numbered Turkish Commercial Code.

According to Turkish Commercial Code’s “journal keeping responsibility” titled Art.64/3,4

• General journal
• General ledger
• Inventory register
• Stock ledger
• Board of Directors decision book
• General assembly meeting and negotiation book’s

Opening approvals will be made by notary during the establishment and before the being used. These books’ opening approvals for the following opening cycle, will be done by notary until the end of the month before the first month of the opening cycle (for those have the accounting period as the calendar year, within the month of December)  in which the books will be used.

Moreover stock ledger and general assembly meeting and negotiation book can be used for the following opening cycles as well, if they have the adequate number of pages, without having done the opening approval.

General journal closing approval can be done by notary, by the end of the following opening cycle’s sixth month (end of the month of June if the accounting period is calendar year); board of directors decision book closing approval can be done by notary buy the end of the first month of the opening cycle (end of the month of January if the accounting period is the calendar year)

In Turkish Commercial Code closing approvals are limited to general journal and board of directors decision book and no such obligation is brought for the inventory book.

Legal entities and legal persons using calendar year for the opening cycle shall get the general journal closing approval for the year of 2015 done to a notary by the end of 2016 June the latest. Enterprises that are subjects to special accounting period shall get the closing approval done to the notary by the end of the 6. month following the financial year.

Aforesaid provision is effective for the taxpayers who keep the book in tangible environment, for legal entities and real persons who keep the electronic books, with the approval for the last month of the accounting period the closing approval is also considered as taken.

Opening and closing approvals will not be required for the electronically kept books; but those who start keeping electronic books within the calendar year or the accounting period, shall have the closing approval done by the one month period following the date they have started