TAX NEWS NO: 2020/1
Subject: The obligation of selling a minimum of 80% of export proceeds to a bank has been repealed.
Communiqué No. 2019-32/56 regarding the Decree No. 32 on the Protection of the Value of the Turkish Currency has been promulgated in the Official Gazette on December 31th, 2019 and entered into force on the same date.
As you may recall, with the Communique no. 2018-32/48 which had been promulgated in the Official Gazette dated 4 September 2018, the proceeds derived from the export transactions realized by the residents in Turkey, were required to be brought directly and without any delay into Turkey following the payment of such amounts by the importer, i.e. the export proceeds could be either transferred to the intermediary bank or brought into Turkey. The export proceeds were required to be brought into Turkey within a maximum of 180 days as from the date of physical export. Additionally, minimum of 80% of such proceeds were required to be sold to a bank. (Our explanations on the regulation in question were provided for your attention in our tax news no. 2018/9.)
Through the new Communiqué No. 2019-32/56; the obligation concerning the proceeds derived from the export transactions realized by the residents in Turkey to be transferred to the intermediary bank or to be brought into Turkey, within a maximum of 180 days as from the date of physical export, directly and without any delay in Turkey following the payment of such amounts by the importer is still valid. Moreover, this temporary regulation has been made permanent.
On the other hand, the obligation of selling a minimum of 80% of export proceeds to a bank, has been repealed.
Additionally, following the abovementioned regulations, the related Turkish Central Bank Circular has also been renewed.
Accordingly, the highlights of the said Communiqué and the relevant Turkish Central Bank Circular dated 16 January 2020 are summarized below;
The obligation of selling a minimum of 80% of such proceeds to a bank has been repealed,
As per the previously published circular, banks were able to offset the costs concerning the export and import of goods, provided that the parties have been the same people and the amounts linked to the export were brought to the country within the determined period of time. In accordance with Article 21 of the New Circular; the relevant obligation requiring the parties to be the same people has been removed. Instead, it is decided that bringing of the remainder of the offset amount to the country is sufficient for the banks to be able to offset the amounts linked to export and import of goods,
As per the newly introduced provisions, it is made possible that the receipts linked to export of goods of the local exporters to their foreign subsidiaries are offset, provided that the relevant receipts are injected as share capital.
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.
© 2019 Deloitte Global Services Limited