Temporary Certificates
As you know, temporary certificates are securities that are issued by the incorporated companies to substitute for the stock certiciates. Temporary certificates allow its owners to gain the rights of share ownership such as attending the general assembly meetings, voting, getting dividends. They become invalid once the stock certificates are prepared by the incorporated company and delivered to the partners.
Therefore, for the taxation of incomes resulting from the disposal of the certificates, the provisions of the Income Tax Law regarding the taxation of incomes resulting from the disposal of stock certificates are applied.
Accordingly, in the case where the certificates are disposed within two years following the date of acquisition, the income will be subject to the income tax as gain from appreciation and if the certificates are disposed after two years following the date of acquisition, the income will not be subject to the income tax.
Furthermore, the replacing of certificates with stock certificate, hence the date when the stock certificates are obtained will be regarded as the date of acquisition of stock certificates.
Source: Income Tax Law Numbered 232
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