Special and general provisions in the Banking law no. 5411, their accounting and status in tax legislation

In this study, it is included that legal and administrative regulations in banking and tax legislation for provisions (provisions for credit) in the Banking Law no. 5411. With comparing regulations in each two legislations pertaining to provision for credits, it is resulted that there are controversies effect to tax applications of banks. Considering basic principles of taxation, hierarchy of norms and banking transactions, legitimacy of applications are evaluated. At accounting of provision for credit level; mentioned regulations in accounting standards and uniform chart of accounts, underlined importance of special and general provisions for concept of accounting profit and financial profit, explained and exemplified while creating fiscal and financial statements. Suggestions are gave that how should it apply in banking sector. As a result; without distinction of participation banking and general banking, it is required that adding general provision amounts as non-tax deductible expenses in corporate tax base and considering special provision amounts as expenditures in the calculation of the corporate tax base.