• Equal treatment of citizens of both parties in terms of rights and obligations,
• Aggregation of periods of insurance completed in the territory of the other contracting party for the determination of entitlement to a benefit,
• In case of an illness, the insured person and his/her family members can avail themselves of the right to healthcare benefits while staying in the territory of the other contracting party,
• Family members can avail themselves of the family benefits (child benefits and increments) while residing in the territory of the other contracting party,
• Entitlement to a retirement pension for an insured person, who attains the required age after returning to the other contracting party,
• Continuing to receive the pension, acquired regarding the employments in one of the contracting parties, after transferring of the residence to the other contracting party,
• In case of death of the insured person, family members residing in the territory of the other contracting party can be entitled to a widow’s or orphan’s pension and a lump sum payment as the survivors of the deceased.

Accordingly, those who will avail themselves of the provisions of the agreement are considered equal in the legislations of the contracting parties to the citizens of that country in terms of rights and interests through a common and key provision of the agreements. Thus our citizens employed in the contracted countries and their dependents can benefit from their social security rights under the same conditions as the nationals of that country.

As a result of the social security agreements, our citizens in Turkey have the opportunity to avail themselves of their social security rights, arising from the legislation of the other country and acquired with respect to long and short term insurance branches. In addition to the insured person himself/herself, his/her family members living with him in the country of employment, the family members living in Turkey can benefit from this right.

Turkey has signed Social Security Agreements with 28 countries. These agreements are enumerated in the table below.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

However, the provisions on healthcare insurance in the agreements signed between Azerbaijan and Albania cannot be implemented due to the reasons stemming from their legislations.

Which persons can receive healthcare services abroad according to the social security agreements?
Unless otherwise provided in the agreement on social security, the following persons have the right to receive healthcare benefits on behalf of our Institution;

1. Insured persons (banks, insurance and reassurance companies, chambers of commerce, chambers of industry, stock markets and the workers employed in the unions constituted by them) under the scope of letter (a) of the first paragraph of Article 4 of the Law No. 5510 and of transitional Article 20 of the Law No. 506 and their dependent family members. Of the persons specified in this scope, the following can receive healthcare benefits while staying or residing in a foreign country:

• Insured persons temporarily posted to a foreign country,
• Persons who are permanently posted to a foreign country and their dependent family members,,
• Dependent family members of the insured and retired persons staying abroad for educational reasons,,
• Insured and retired persons staying abroad for touristic purposes and their dependent family members,,
• Dependent family members of the insured persons who are permanently residing abroad and retired persons and their dependent family members,,
• Members of universal health insurance who are sent to another country for treatment and their dependent family members.,

2. Apart from this; according to the legislation of our Institution, the following persons can avail themselves from the right to receive healthcare benefits provided by our Institution under the scope of universal health insurance on behalf of the contracted countries;

• For temporary stay; all the persons registered on the document (formulary) of right to healthcare benefits, only in cases of emergency,
• For permanent residence; persons specified in the social security agreements.

In this context, in order to receive healthcare benefits in our country, respective persons are required to be an insured member of universal health insurance or dependent of the insured in question.

Conditions for Receiving Healthcare Benefits for the Persons Having Foreign Insurance
Persons having foreign insurance, who either temporarily stay or permanently reside in our country, are required to get a formulary from the institution to which they are registered and submit it to the Departments of Foreign Services operating within the scope of Social Security Provincial Directorates/Social Security Centers in their place of stay or residence; or to the Social Security Centers designated by Social Security Provincial Directorates.

Through the Document of Healthcare Benefits under Social Security Agreement, they can avail themselves from right to healthcare benefits in contracted health facilities, like other insured members of universal health insurance, free of charge excluding the rates of contribution and share which have to be paid legally by the insured himself/herself.

In cases of emergency, the insured persons, coming from countries with whom a social security agreement including healthcare insurance applications has been concluded and who are temporarily staying in our country, can receive the formulary for the right to healthcare services from the “Department of Foreign Services” in their place of stay in Turkey by submitting the document issued by the social security institution in their country. Besides, these documents can be confirmed through Social Security Centers designated by Social Security Provincial Directorates.

Benefiting from Emergency Healthcare Services for the People Having Foreign Insurance
In order to receive healthcare services, foreign insured people are required to make an application to the contracted health facilities of the Ministry of Health or to the private or training health facilities with the “Document of Healthcare Benefits under Social Security Agreement.”
Only through the referral of our contracted units, services can be provided from the non-contracted health facilities. When a person applies directly to a non-contracted health facility, regardless of this regulation, his/her expenses of treatment can be covered by the Institution on condition that it is an emergency situation.

Whether the treatment is an emergency or not is determined through the inspection of the relevant submitted medical documents by the contracted health facilities.

In such a case, the insured person shall apply to the Social Security Provincial Directorate/Social Security Center together with the reports regarding his/her treatment and invoices if he/she has made the payment. If the treatment is accepted as an emergency, a reimbursement shall be made to the insured in accordance with the provisions set forth in Medical Enforcement Declaration (SUT).

Duration of Benefiting from Healthcare Services for Foreign Insured People who are Temporarily Staying in our Country and Determination of the Family Members to Receive Healthcare Benefits
People, who are temporarily staying in our country, have the right to healthcare benefits for the period specified in the documents that they brought with them. For temporary stay, people to receive healthcare benefits are determined according to the legislation of the country issuing the document.

In case healthcare benefit is needed after the expiration of the document;

• A new document for treatment period shall be requested from the contracted country by applying to the relevant unit of the Institution.
• Insured person shall directly contact with the insurance institution of the country to which he/she is subject and request a new document for treatment period. The healthcare services provided meanwhile have to be paid for.
• After the document for the extension of the period is received from the contracted country, a “Document of Healthcare Benefits under Social Security Agreement” shall be issued retrospectively and the expenses shall be reimbursed to the respective people pursuant to the provisions of Medical Enforcement Declaration (SUT).

Duration of Benefiting from Healthcare Services for Foreign Retired People who are Permanently Residing in our Country and Determination of the Family Members to Receive Healthcare Benefits
People, who are permanently residing in our country, have the right to receive healthcare benefits for the period specified in the documents issued by the institutions of the contracted countries until a notification regarding the termination of the right to healthcare benefits is received.

For the permanent residences, the people to receive healthcare benefits subject to the agreement.

In our agreements with Germany, Netherlands, Belgium, France, Czech Republic, T.R.N.C., Luxemburg and Croatia, family members are determined pursuant to the legislation of our Institution; while in our agreements with Macedonia, Romania, Azerbaijan, Bosnia-Herzegovina and Albania they are determined according to the legislation of the relevant country.

Documents of right to healthcare benefits in cases of permanent residence are sent to our Institution by the insurance institutions of contracted countries either for a long time or without specifying the date of termination of the right.

However, the rights of foreign insured people in order to receive healthcare benefits are sometimes terminated by the relevant sickness funds for various reasons.

For the purpose of checking whether foreign insured people’s rights to healthcare benefits are continuing or not, the mentioned documents are issued in every six months’ period and given to the relevant persons.

Where the Costs of Treatment can be reimbursed by Foreign Insured Persons who pay for Their Treatment without a Document of Right to Healthcare Benefits?
Foreign insured persons who pay for their treatment in our country without obtaining the document (formulary) for receiving healthcare benefits from the insurance institution to which he/she is registered shall keep their reports and invoices regarding the treatment. After returning to his/her country to which he/she is registered, he/she shall request a reimbursement by submitting the relevant reports and invoices indicating the healthcare expenses to the institution to which he/she is affiliated. In this case, if it is set forth in the agreement, the insurance institution receiving the application shall request information from our Institution on the specified cost of the treatment provided in our country by sending the relevant reports and invoices. Following the receipt of the notification on the specified cost of that treatment, institution shall reimburse the notified amount to relevant person.

Who can Receive Healthcare Benefits in Germany in Accordance with the Social Security Agreement between Germany and our Country?
Only our workers and retired workers were to avail themselves of the healthcare provisions of the Social Security Agreement signed with Germany.

By way of reaching a consensus with German liaison body, craftsmen and civil servants and people who are retired in this context and also their dependants are covered by the healthcare provisions of the Social Security Agreement between Turkey and Germany.

As a result of this regulation, all the insured and retired persons and their dependants going to Germany, have the opportunity to avail themselves of healthcare benefits.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

It came into existence as a unique and promising model of multilateral political and economic initiative aimed at fostering interaction and harmony among the Member States, as well as to ensure peace, stability and prosperity encouraging friendly and good-neighborly relations in the Black Sea Region.

The BSEC Headquarters- the Permanent International Secretariat of the Organization of the Black Sea Economic Cooperation (BSEC PERMIS) – was established in March 1994 in İstanbul.

With the entry into force of its Charter on 1 May 1999, BSEC acquired international legal identity and was transformed into a full-fledged regional economic organization: Organization of the Black Sea Economic Cooperation. With the accession of Serbia in April 2004, the Organization’s Member States increased to twelve.

BSEC covers a geography encompassing the territories of the Black Sea littoral States, the Balkans and the Caucasus with an area of nearly 20 million square kilometers. BSEC region is located on two continents and it represents a region of some 350 million people with a foreign trade capacity of over USD 300 billion annually.

Source: Ministry of Customs and Trade

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Minister of Science, Industry and Technology of Turkey Dr. Faruk Özlü said new agreements between Turkish, Azeri and Georgian businessmen will establish strong partnerships between the countries. Turkish republic is ready to take every step to build stronger economic and commercial relations with Azerbaijan and Georgia since they hold a significant geostrategic position in South Caucasia.
Turkey is growing despite global adversity but also its macroeconomic indicators are in a positive trend. Turkish economy has been affected slightly from the neighboring countries and the world, nevertheless, Turkey is determined to do business with local currency. Relations with Azerbaijan and Georgia advance faster in comparison to those with other countries yet trade volume growth needs to be accelerated. Turkish construction companies bring investment along with their services; as a result, Turkish construction business should not be undermined. Trans Anatolian Natural Gas Pipeline Project (TANAP) is being conducted with Azerbaijan and Baku-Tbilisi-Kars railway will be completed in 2017. Efforts for the revival of mid corridor of Silk Trade Route still continue and businessmen play a key role to enhance relations.

Minister of Economy of Azerbaijan Şahin Mustafayev stated that Azerbaijan, Georgia are united with Europe thru Turkey. He highlighted Azerbaijan’s investment in Turkey since its worth is 9 billion USD. Turkey is Azerbaijan’s number 1 trade partner, furthermore, investment in Turkey will continue to increase. 330 Turkish companies operate in Azerbaijan and trade agreements between 3 countries increase trade volume tremendously.

Minister of Economy and Sustainable Development of Georgia Giorgi Gakhariaexpressed the existing collaboration between three countries should continue. Turkey and Azerbaijan are Georgia’s key trade partners and new regulations are enacted to facilitate investment and business operations in Georgia. Georgia ranks 23 in World Bank’s List of Ease of Doing Business and it holds Free Trade Agreements with Commonwealth of Independent States, European Union and Turkey thus have access to one third of global market.

Deputy Minister of Economy of Turkey Fatih Metin underlined the significance of this meeting that united business communities from three partner countries. Georgia, Azerbaijan and Turkey should remove every trade barrier in order to elevate trade volume to 20 billion USD. Three countries will meet the target in near future by uniting Turkey’s R&D and innovation infrastructure with Georgia’s rich natural resources and Azerbaijan’s strong energy infrastructure to develop joint projects.

DEİK Board Member Rona Yırcalı expressed that Turkey, Azerbaijan and Georgia are trying hard to build sustainability in the region. Economic and commercial relations between three countries lay a foundation for the triad partnership. In the previous Business Forum trade volume target has been set to 20 Billion USD yet current volume is 14 billion USD. As representatives from the business communities of three countries, our responsibility is to reach the target and make the trade volume grow. Key topics of the Business Forum will be regional business opportunities, mainly focusing on project finance models and how we can cooperate in the fields of transportation and logistics.

Turkey-Azerbaijan Trade Figures (Ministry of Economy- 2016)
Turkish Export to Azerbaijan: 1.278 Billion USD
Main Export items:Guns and ammunition, furniture, towel, iron and steel, construction materials
Turkish Import from Azerbaijan:278 Million USD
Main Import Items:Ethylene polymers, processed aluminum, electric energy, acyclic alcohols, petroleum oils
Trade Volume:1.568 Billion USD
Trade Balance: 1.008 Billion USD

Turkey-Georgia Trade Figures (Ministry of Economy- 2016)
Turkish Export to Georgia:1.177 Billion USD
Main Export Items:Plastic hoses, pipes and fittings, iron and steel, hygienic towels
Turkish Import to Georgia: 212 Million USD
Main Import Items: Meat, offal, marine animals, textile, iron, fish and marine mammals.
Trade Volume: 1.389 billion USD
Trade Balance: 965 million USD

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

• to encourage FDI in the country
• to protect the rights of investors
• to align the definitions of an investor and investment with international standards
• to establish a notification-based system rather than an approval-based one for FDI
• to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

• freedom to invest,
• national treatment,
• expropriation and nationalization,
• freedom of transfer,
• national and international arbitration and alternative dispute settlement methods,
• valuation of non-cash capital,
• employment of foreign personnel,
• liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

• to regulate the work carried out by foreigners
• to stipulate the provisions and rules on work permits given to foreigners

  2. Bilateral Agreements
  2.a. Bilateral Agreements for the Promotion and Protection of Investments
  Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.