With the Presidential Decree No. 1106 published on the Official Gazette No. 30775, dated 2019, 15 May, subclause (e) of the first clause of the first article of the Decision annexed to the Council of Ministers Decision numbered 98/1591 based on the Article 33 of the Law No. 6802 on the Expenditure Taxes on the determination of the tax rates of the banking and insurance operations has been amended.
According to the subject amendment, in foreign exchange transactions, one per thousand of the sales amounts will be taxed and while the Banking and Insurance Transaction Tax (“BITT”) on certain foreign exchange transactions has been abrogated, BITT on other transactions will be applied as 0,1%.
BITT will be zero in the foreign exchange sales made between the banks and authorized institutions and made to the Treasury and in foreign exchange transactions apart from this, BITT shall be purchased at a rate of 0,1 percent of the sales amount.
With the subject amendments, in order to balance the remarkable increase observed in FX rates, targets for reducing demand for foreign currencies, deterring the purchase of the foreign currencies and providing additional income sources for the budget were taken into consideration.
This Presidential Decree shall enter into force on 2019, 15 May and shall be executed by the Minister of Treasury and Finance.
The full text of the Presidential Decree can be accessed from here. You can contact us for further information and to take advantage of our advocacy and consulting services. You can find detailed information about our office’s work on Banking and Finance Law and Administrative and Tax Law on our website.
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