In light of the amendment of the Income Tax Law (Law No. 193) in 2006, the tax incentive for investment allowance granted by Article 19 of the Law was abolished and a new temporary provision added to the law (Temporary Article 69), which envisaged an exception stipulating, “only investment amounts carried forward from previous periods or which have technical and economic integrity with investments started before January 1, 2006 can be deducted from the income tax bases of 2006, 2007 and 2008”, and that it was no longer possible to carry forward investment allowances that were unused as of December 31, 2008.

In this respect, such provision has been reviewed by the Constitutional Court, which has ruled that the said provision was contradictory to the “rule of law principle” and removed the said time limit from the Law by annulling the phrase “2006, 2007 and 2008”. Accordingly, taxpayers may carry forward investment allowance amounts within the scope of the exception from their income tax bases for the years after 2008.