Contributed by Tüzel Yeminli Mali Müşavirlik A.Ş., Turkey

Banking and Insurance Transactions Tax ("BITT") rate to be imposed on foreign exchange (FX) transactions and non-physical gold sales(*) has been increased from 0,2% to 1% through the Presidential Decree no. 2568 published in the Official Gazette dated May 24th, 2020
In accordance with the relevant regulation, BITT rates to be calculated over the below listed transactions have been determined to be 0%;

  • Foreign currency sales among banks, authorized institutions or between banks and authorized institutions,
  • Foreign currency sales made to the Turkish Ministry of Treasury and Finance,
  • Foreign currency sales made to borrowers who have foreign currency loan, by the lender bank or the bank that mediate the use of foreign currency credits, intended for the payment of the foreign currency loan,
  • Foreign currency sales made to enterprises having the industrial registry certificate,
  • Foreign currency sales made to exporters who are members of Exporters' Associations.

(*)As per the Revenue Administration’s Letter dated May 21, 2020, addressed to the Banks Association of Turkey, non-physical gold sales will be considered as foreign exchange transactions.

Dated: []