Strategic Tax Planning Through VCIF (GSYF) Investments

As has been known and practiced for some time—particularly by profitable corporations—investments made by companies into Venture Capital Investment Funds (VCIFs / GSYFs) are eligible for tax deductions, with the aim of supporting and incentivizing entrepreneurship.

As has been known and practiced for some time—particularly by profitable corporations—investments made by companies into Venture Capital Investment Funds (VCIFs / GSYFs) are eligible for tax deductions, with the aim of supporting and incentivizing entrepreneurship. As we enter a new year and financial statements are being finalized, we wanted to revisit this topic and provide a brief summary.

From a corporate perspective, while this practice offers a significant tax advantage, it is also important to emphasize that selecting the right fund represents an opportunity to invest not only in future technologies but also in an instrument with high financial return potential.

Who Can Benefit From the GSYF Tax Deduction and How Does It Work?

The venture capital fund mechanism regulated under Article 325/A of the Tax Procedure Law (VUK) provides corporate taxpayers with an important tax planning tool.

Pursuant to the relevant article, a venture capital fund reserve may be set aside from the relevant period’s profits or declared income for the purpose of contributing capital to, or purchasing shares of, venture capital investment companies established or to be established in Türkiye and subject to the regulation and supervision of the Capital Markets Board (CMB).

Under the same regulation, there are two key limitations for benefiting from the tax deduction:

• The amount of the fund to be allocated may not exceed 10% of the profit or declared income,
• The total amount of the allocated fund may not exceed 20% of shareholders’ equity.

Both conditions must be met simultaneously in order to benefit from the tax incentive.

Within this scope, GSYF investments made or to be made in 2026 may be deducted from the 2025 corporate tax base.

Example: Determining the Investment Limits

According to the calculation above, for a taxpayer earning TRY 50,000,000 in profit:

• The 10% limit based on profit equals TRY 5,000,000,
• The 20% limit based on equity equals TRY 20,000,000.

Since the lower amount applies, the taxpayer may benefit from the tax deduction by making a GSYF investment of up to TRY 5,000,000.

If this investment is made in 2026, it can be deducted from the 2025 corporate tax base.

How Is the Deduction Amount Calculated?

The corporate tax base is calculated as follows:

• Commercial balance sheet profit (loss)
• Non-deductible expenses
• Prior year losses
• All deductions and exemptions

The tax advantage obtained through the GSYF investment is clearly illustrated below.

Before Applying the GSYF Deduction

Before applying the GSIF (Venture Capital Investment Fund) deduction, the company’s commercial profit is TRY 60,000,000.
Non-deductible expenses amounting to TRY 2,500,000 are added to this profit.

Then, a prior year loss of TRY 7,500,000 and a free zone income exemption of TRY 5,000,000 are deducted from the tax base.

As a result of these adjustments, the corporate income tax base is calculated as TRY 50,000,000.

After Applying the GSYF Deduction

In this case, the taxpayer will pay corporate tax on TRY 45,000,000 instead of TRY 50,000,000 for the 2025 fiscal year, thanks to the GSYF investment made in 2026.

Key Points to Consider

• The allocated venture capital fund must be set aside from the relevant period’s profit and recorded in a special fund account under liabilities.
• The transfer to the fund account must be completed between the beginning of the period following the end of the fiscal year and the corporate tax return filing date.
• The allocated fund amount must be invested in venture capital investment funds by the end of the year in which it is allocated.
• If the investment is not made, the deducted tax amount will be collected together with late payment interest.
• Funds allocated each year are evaluated separately; no repeated deductions may be applied for prior years’ funds.
• Under no circumstances may the total fund amount exceed 20% of shareholders’ equity.

Boğaziçi Ventures GSYF Options Within the Scope of Tax Planning

GSYF investment for corporate tax planning purposes should be considered not only as a compliance tool, but also as a strategic investment instrument that enables companies to optimize cash flow while allocating capital to high-growth potential areas.

GSYFs offered under the BV Portföy and Boğaziçi Ventures umbrella provide flexible and scalable options for institutions with different risk profiles, maturity expectations, and balance sheet structures.

Below is a summary of our prominent GSYF options from a tax planning perspective:

BV Growth II GSYF (BV2)

Suitable for visionary institutions seeking to combine tax planning with a long-term investment in artificial intelligence—the most important technology of the future.

• Focuses on startups developing application-level AI solutions
• Targets high scalability potential in Türkiye and selected international markets
• Aims for high-multiple exits by taking early-stage positions
• A commitment-based and participation-driven structure, making it highly suitable for institutions with this investment preference
• Offers pricing advantages for investments made until June 2026

BV Sinerji GSYF (BSG)

A sector-agnostic option for institutions seeking high financial returns through secondary investment strategies while optimizing their tax burden.

• Structured around secondary and co-investment strategies
• Provides access to high-potential technology startups at discounted valuations
• Targets annual profit distributions starting in 2026
• No minimum investment amount, making it a flexible tool for tax planning

 Joygame Pre-IPO GSYF (JOY)

Targets institutions that want to combine tax planning with an IPO-focused value appreciation strategy and achieve high-multiple financial returns in the medium term.

• Focuses on the IPO process of Joygame, a company with a strong track record in gaming and publishing
  (Türkiye’s first game company expected to go public)
• The targeted exit offers higher valuation multiples compared to direct sales
• Suitable for institutions seeking tax advantages alongside high-growth investments
• Accepts investors until the end of March 2026

Liquidity Trading Pre-IPO GSYF (BVS)

Designed for institutions aiming to combine tax advantages with strong cash generation, predictable growth, and IPO-focused value appreciation in pursuit of high-multiple medium-term returns.

• Focuses on the IPO of Liquidity Trading, a market leader in high-frequency trading (HFT) and quantitative trading technologies in Türkiye
• Strong risk-return balance supported by revenue-generating infrastructure and high EBITDA margins
• Principal risk is minimized through the use of absolute return funds within the fund structure

Key Considerations in GSYF-Based Tax Planning

As noted, the government’s tax planning incentives should be evaluated together with the right fund selection to create opportunities both in future technologies and high financial returns.

A properly structured GSYF investment reduces tax burden while enabling companies to allocate capital to areas that can generate value alongside their core business activities.

GSYF selection is not merely an investment decision, but also an integral part of balance sheet, cash flow, and tax strategy. Therefore, the following should be evaluated together:

• Experience and track record of the fund management company
• Investment strategy and maturity of the fund
• Liquidity expectations
• Proper structuring of tax advantages
• Level of CMB supervision, reporting, and transparency

Boğaziçi Ventures and BV Portföy—recognized as one of Türkiye’s most active and consistently performing technology investors—stand out as one of the strongest options for institutions seeking to evaluate the structural advantages of the GSYF investment model within a measurable, auditable, and strategic framework.

As the tax return period approaches, consider moving beyond traditional methods and evaluating an investment in one of Boğaziçi Ventures’ GSYF options to secure both tax advantages and long-term value creation.

👉 To determine the most suitable GSYF strategy for your portfolio and balance sheet, consult with our expert teams and optimize your tax planning today.

Disclaimer / Legal Notice

This content has been prepared for general informational purposes only and does not constitute tax advisory, financial consultancy, or legal opinion.

The information provided is not specific to any individual, institution, or particular situation. Tax practices may vary depending on a company’s specific circumstances, regulatory changes, and current interpretations by the authorities.

Therefore, before making any decisions regarding GSYF investments or tax planning, it is recommended to seek professional advice from your authorized financial advisor or tax consultant.

Managing your investments securely, diversifying your portfolio, and minimizing risks are most effectively achieved with the expertise of BV Portföy.

For more information, please visit: www.bvportfoy.com

To invest, contact us at: [email protected]