Numara : 8
Tarih : 22.4.2022

TAX NEWS

NO: 2022/8

Subject: An Obligation to Pay in Turkish Lira Has Been Introduced for the Contracts Related to the Sale of Movable Property Agreements

“The Amendment Communique (Numbered: 2022-32/66) on the Amendment to the Communiqué on Decree No. 32 on the Protection of the Value of Turkish Currency (No: 2008-32/34)” has been published in the Official Gazette on 19 April 2022 and entered into force on the same date.

As it is known, the value and any other payment liabilities arising from the movable properties’ sales (except for vehicle sale contracts) which are executed among Turkish residents may be denominated in a foreign currency or foreign currency indexed value.

With this Communiqué, the following sentence has been added to the end of the 9th paragraph of the 8th article of the Communiqué on Decree No. 32 on the Protection of the Value of Turkish Currency (No: 2008-32/34); “However, the payment obligations of the contract are required to be fulfilled and accepted in Turkish currency

In accordance with the amendment, the value and any other payment liabilities arising from the movable properties’ sales contracts (except for vehicle sale contracts) which are executed among Turkish residents may be denominated in a foreign currency or foreign currency indexed value. However, the payment obligations of the contract are required to be fulfilled and accepted in Turkish currency.

In this context, there is no explanation in the Communiqué regarding the exchange rate to be considered.

Afterward, the Ministry of Treasury and Finance issued a Press Release dated 21/4/2022, which included explanations on the subject.

Some highlights from the statements made in the announcement are as follows:

  • The term "movable" in the Communiqué covers all kinds of goods and ware that do not fall under the definition of real estate,
     
  • Foreign currency checks or deeds that are issued on 19.04.2022 (when the amendment entered into force) and after this date are not allowed to be used in connection with the payment liabilities arising from the movable properties’ sales that are executed among Turkish residents.
     
  • Payment obligations for invoices issued before 19.04.2022 may be fulfilled in foreign currency. 

 

Yours sincerely,

Deloitte Turkey

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2022 Deloitte Global Services Limited