Page 8 - VeGuAralik_2018

Vergide Gündem
English Translation

Amendments announced for the

implementation of contracts in TL

A Presidential Decision was issued in September on the grounds that contracts
could not be executed in foreign currency and requiring the previous ones to be
converted into TL. In accordance with the authority granted by the Decision, the
Treasury and Finance Ministry has identified the contracts that should be concluded
in TL and the contracts permitted to be concluded in foreign currency through a
Communique issued on 6 October.

Several amendments were made to the concerning Communique after about one
and a half months, on November 16. In this article we will try to summarize the
changes introduced through the new Communique.

Real estate sale and leasing

As a general rule, value on the real estate sale and leasing contracts to be executed
by and between Turkish residents was not permitted to be set in foreign currency
or indexed to foreign currency. This requirement was covering the real estate
located in free zones as well. The values set in foreign currency on real estate
leasing contracts executed prior to 13 September had to be converted into TL for
two years. Free zones have been removed off the article’s text through the latest
Communique.

Certain exemptions introduced

The new Communique has cleared the way for the contracts concerning real estate
sale and leasing indicated below to be concluded in foreign currency or indexed to
foreign currency:
a. Real estate sale and real estate leasing contracts concluded by persons resident
in Turkey where the parties to the contract as buyer or lessee are not Turkish
citizens,

b. Real estate sale and real estate leasing contracts concluded by branches,
representatives, offices, liaison offices, companies owned by non-residents
(shareholding rate must be at least 50% or over directly or indirectly or jointly
controlled and/or controlled) in Turkey and companies in free zones that are party
for their activities in free zones, as buyer or lessee,

c. Real estate lease contracts concerning the leasing of accommodation facilities
certified by the Ministry of Culture and Tourism with the purpose of operating,

d. Real estate lease contracts to be concluded for the leasing of duty-free shops.

Vehicle sale and leasing

Vehicle sale and leasing contracts to be concluded by and between Turkish residents
are not permitted to be executed in foreign currency or indexed to foreign currency.
Engineering vehicles were also included in the scope of vehicles. Through the
new Communique, the wording of “including the engineering vehicles” has been
removed from the aforementioned arrangements.

8 Aralık 2018