TAX NEWS NO: 2018/11
September 17, 2018
Subject: Monetary values stated on contracts executed among Turkish residents shall be determined in Turkish Lira.
Presidential Decree no.85 regarding the Decree No. 32 on the Protection of the Value of the Turkish Currency has been published in the Official Gazette on September 13th, 2018 and entered into force on the same date.
Accordingly, except under certain circumstances to be determined by the Ministry, the value and any other payment liabilities arising from the contracts which are executed among Turkish residents and which involve;
Purchase and sale of movable and immovable properties,
Leasing of all kinds of movable and immovable properties including vehicle and financial leasing,
Service and work agreements
are not allowed to be determined in a foreign currency or in a foreign currency indexed value.
Furthermore, monetary values stated on contracts denominated in foreign currency under the existing agreements, which have already been executed and are still in force, shall be re-determined in Turkish Lira within 30 days from the date of 13.09.2018 (enforcement) which is until 13.10.2018, except for the cases to be indicated by the Ministry.
However, the foreign exchange rate to be used in order to convert the agreements into TL has not been stated in the decree.
Secondary legislation is expected to be published in order to clarify the implementation of the above mentioned regulation.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
These materials and the information contained herein are provided by Deloitte Turkey and are-intended to provide general information on a particular subject or subjects and are not on exhaustive treatment of such subject(s).
Accordingly, the information in these materials is not intended to constitute accounting, tax, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect your personal finances or business, you consult a qualified professional adviser.
These materials and the information contained therein are provided as is, and Deloitte Turkey makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte Turkey does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality.
Deloitte Turkey expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.
Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk off loss resulting from the use thereof. Deloitte Turkey will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statue, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein.
© 2018 Deloitte Global Services Limited