Thresholds for Statutory Independent Audit Obligation Updated

On May 1, 2025, a Presidential Decree was published in the Official Gazette of the Republic of Türkiye, revising the threshold values used to determine which companies are subject to independent audit. This new regulation once again modifies the scope criteria for statutory audits previously set by Presidential Decree No. 6434 dated November 30, 2022, and amended on April 6, 2024.

New Thresholds

The updated threshold values, which serve as general criteria for determining statutory audit obligation, are as follows:

• Total Assets: TRY 300 million (previously: TRY 150 million)
• Annual Net Revenue: TRY 600 million (previously: TRY 300 million)
• Number of Employees: 150 (unchanged)

These thresholds will apply to all companies not specifically regulated under separate provisions of the Decree.

Additionally, the threshold values for companies listed under Annex II of the Decree have also been updated. Subject to the exceptions outlined in the said annex, the revised thresholds apply to:

a) Companies regulated and supervised by the Information and Communication Technologies Authority,

b) Companies owned or controlled by the Savings Deposit Insurance Fund (SDIF), and

c) Companies in which municipalities hold 50% or more of the share capital.

The new thresholds for these entities are as follows:

• Total Assets: TRY 120 million (previously: TRY 60 million)
• Annual Net Revenue: TRY 150 million (previously: TRY 80 million)
• Number of Employees: 100 (unchanged)

The updated criteria will be applicable as of the 2025 fiscal year.

This amendment carries significant implications in terms of audit obligations and corporate governance practices. It is therefore crucial for companies to reassess their status in light of the newly introduced thresholds.