TAX NEWS NO: 2012/5

 September 10, 2012


Communiqué Regarding the Application of Advance Dividend Distribution

Advance dividend distribution has become possible for non-public joint stock companies, limited liability companies and partnership limited by shares as per the Turkish Commercial Code Numbered 6102.

The Communiqué Regarding the Application of Advance Dividend Distribution has been published in the Official Gazette dated 9 August 2012.

1. What are the conditions to be able to pay advance dividend?

According to the mentioned communiqué, companies may distribute dividends on condition that they declare profits based on their 3, 6 and 9 month interim financial statements to be prepared in the fiscal period and a General Assembly decision has been taken.

2. How is the payable advance dividend calculated?

The amount of the distributable advance dividend shall be attained after the deduction of the following items from the interim business profit;

· All the losses, if any, recorded in the previous fiscal years,
· Taxes, funds and financial provisions,
· Reserves to be allocated in accordance with the laws and articles of association,
· Amounts to be allocated for the owners of privileged shares, dividend certificates and for the others participating in the profit, if any.

The payable advance dividend may not exceed the half of the amount calculated in this way.

Yours sincerely,
Deloitte Turkey

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