Georgia – Muhasebe News

Turkey’s Social Security Agreements with 28 Countries!

MuhasebeNews — Tue, 09 Apr 2019 06:03:11 +0000

Social Security of Our Citizens Working Abroad
Social Security Agreements provide various rights such as;

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.

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eTIR System in Turkey

MuhasebeNews — Tue, 10 Oct 2017 07:00:00 +0000

Having regard to globalization and electronization of the TIR System, Turkish Customs Administration maintains working on to achieve these goals.

In this context, the Ministry of Customs and Trade of the Republic of Turkey has put into practice the Customs to Customs (C2C) exchange of data project with Georgia and Customs to Business/Business to Customs (C2B/B2C) exchange of data project with Iran.

Through both projects, the aim is to make customs procedures and international border crossings quick and simple towards paperless cross-border trade.

The project has 6 stakeholders. It is developed by the UNECE and IRU and conducted by the Turkish and Iranian Customs Administrations.

The signatories of the TOR, thus the stakeholders of the pilot project are: the United Nations Economic Commission for Europe (UNECE), International Road Transport Union (IRU), Ministry of Customs and Trade of Turkey, Islamic Republic of Iran Customs Administration, the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and Iranian Chamber of Commerce, Industries and Mines (ICCIMA).

The first phase of the pilot project covered a period from November 2015 to August 2016, and the second phase covered a period from August 2016 to February 2017.

As the TOR of the pilot project foresees a 1-year implementation, by the end of February 2017, 82 pilot transports in total were carried out with great success.

All of the companies took part in the Project used e-guarantees.

In line with the Terms of Reference, no paper TIR Carnets was used.

Instead, due to legal necessities, “print at home solution” was applied. All through the pilot project, TIR Carnet format was applied as an accompanying document with the exact TIR Carnet layout.

During the second phase of the pilot, more companies and additional customs offices were involved, which allowed multiple loading and unloading.

With the finalization of the project, the actors concluded on the understanding that eTIR transports can continue after the end of phase 2, meaning after 28 February 2017 within the same scope, unless one Party notifies all the Parties of the intention to discontinue.

Turkey and Georgia concluded a Protocol on Data Exchange including the TOR of an eTIR Pilot Project on 26 January 2016, with the occasion of International Customs Day.

Aiming at testing specific features of e-TIR Reference Model, this pilot project will start soon. The data exchange platform on UNECE has already been established and tests to transmit and receive of data via the exchange platform are being conducted.

Source: Ministry of Customs and Trade

What is Organization of the Black Sea Economic Cooperation?

MuhasebeNews — Fri, 12 May 2017 07:25:00 +0000

Members: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Hellenic Republic, Moldova, Romania, Russian Federation, Serbia, Turkey, Ukraine.

On 25 June 1992, the Heads of State and Government of eleven countries, Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine, signed in İstanbul the Summit Declaration and the Bosporus Statement giving birth to the Black Sea Economic Cooperation (BSEC).

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

Ziraat Bank Opens New Branch in Georgia!

MuhasebeNews — Fri, 05 May 2017 07:08:57 +0000

Ziraat Bank established in Turkey is planning to give services in neighboring Georgia with a new institution called JSC Ziraat Bank Georgia.

Ziraat Bank has been maintaining operations in Georgia in Tbilisi, Marneuli and Batumi since 1998; futhermore, it aims to expand its operations and become a local bank.

Additionally, it will give services by providing internet banking, personal loans and card products.

Turkish Cement Sector Increased Its Production By 50% In The Last Decade!

MuhasebeNews — Thu, 27 Apr 2017 11:30:26 +0000

The Chairman of the Cement Industry Employers’ Union (ÇEİS) Tufan Unal stated that the Turkish cement sector reached a production of 77 million tons in 2016 and added that “Turkish cement sector has increased its production by 50% in the last decade and became the leader of Europe. We have not only become the European leader but also made our country rank first in the world cement production. We are building a future for Turkey with infrastructure, roads, bridges, housing projects.” Unal stated that the US, Africa and Georgia may be potential export markets for the sector in the coming years.

Source: Ministry of Economy

Fifth Turkey-Azerbaijan-Georgia Triad Business Forum Held in Istanbul

MuhasebeNews — Wed, 22 Mar 2017 14:50:26 +0000

Hosted by DEİK, fifth Turkey-Azerbaijan-Georgia Business Forum was held in Istanbul on February 17 with the participation of Minister of Science, Industry and Technology of Turkey Dr. Faruk Özlü, Minister of Economy of Azerbaijan Şahin Mustafayev, Minister of Economy and Sustainable Development of Georgia Giorgi Gakharia, Deputy Minister of Economy of Turkey Fatih Metin, DEİK Board Member Rona Yırcalı.

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

Investment Legislation

MuhasebeNews — Mon, 13 Mar 2017 13:39:08 +0000

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

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

Foreign Trade

MuhasebeNews — Mon, 13 Mar 2017 12:56:54 +0000

Foreign Trade Statistics

Source: TurkStat

Due to the implementation of the liberalization process since the 1980s, the Turkish economy has experienced a period of substantial growth. Foreign trade, in respect of both exports and imports, has grown rapidly and notable changes in the structure of exports have been observed. In this regard, industrial products have gained prominence over agricultural products.

Turkey became a member of the World Trade Organization (WTO) in 1995. Following this move, it finalized an agreement with the European Union, enabling it to join the Customs Union on January 1, 1996.

Exports
In line with the policies implemented as part of the export-led development model followed since 1980, exportation has become important to Turkey in both qualitative and quantitative terms.

Starting in particular in 1980 and continuing up to the mid-1990s, significant developments have been observed in the market share held by labor-intensive industrial products such as textiles and clothing, iron and steel, and foodstuffs.

In 1996, following the establishment of a Customs Union with the European Union, Turkey’s exports entered a new structural transformation process. Developments in recent years show that production and exportation have increased substantially in high-technology sectors, where goods include electrical and electronic machinery and equipment, as well as in the automotive industry. In this respect, it can also be observed that the export market share of manufactured industrial products has increased.

Top 10 Export Product Groups in 2016

Source: TurkStat

Major Export Markets in 2016

Source: TurkStat

Imports
The Turkish import regime highlights the liberalization of Turkish imports in line with its commitment to complete the Customs Union with the EU, its relationship with EFTA, and its obligations under the World Trade Organization (WTO). Turkey has placed special emphasis on its commitment to reduce customs duties in order to align itself with the Common Customs Tariff. Turkey has made some necessary modifications to its import regime, and by January 1, 1996 the Customs Union with the EU became effective.

The basic aims of Turkey’s import policy since the early 1980s can be summarized as follows:

To reduce protectionist measures in conformity with the new GATT rules
To reduce bureaucratic procedures
To secure a supply of raw materials and intermediary goods at suitable prices with certain quality standards

Turkey’s Membership of International Trade Organizations
Turkey has been a member of the World Trade Organization (WTO) since 1995. The country’s commitment to integrating regional and international trade norms can be seen in its participation in and membership of various organizations, including

the Economic Cooperation Organization (ECO),
the United Nations Conference on Trade and Development (UNCTAD),
the Organization of the Black Sea Economic Cooperation (BSEC),
the World Customs Organization (WCO),
the International Chamber of Commerce (ICC),
D-8,
various other organizations

In addition to the Customs Union with the EU, Turkey has signed Free Trade Agreements (FTA) with

Albania,
Bosnia-Herzegovina,
Chile,
Egypt,
Faroe Islands*,
Georgia,
Ghana*,
Iceland,
Israel,
Jordan,
Kosovo*,
Lebanon*,
Macedonia,
Malaysia,
Mauritius,
Montenegro,
Moldova*,
Morocco,
Norway,
Palestine,
Serbia,
Singapore*,
South Korea,
Switzerland,
Lichtenstein,
Syria (pending),
Tunisia. (*to be ratified)

Date: 13 March 2017

Turkey – Synoptic

MuhasebeNews — Mon, 13 Mar 2017 11:49:07 +0000

Date: 13 March 2017