Turkish Lira – Muhasebe News

Turkish Treasury borrows $1.5B from domestic markets

MuhasebeNews — Wed, 18 Dec 2019 09:00:35 +0000

Turkish Treasury borrows $1.5B from domestic markets

According to the news of Hürriyet Daily News, the Turkish Treasury borrowed 8.85 billion Turkish liras ($1.5 billion) from domestic markets on Dec. 17.

Some 4.7 billion Turkish liras ($798.8 million) in two-year fixed coupon Treasury bills — semiannually, reopen, third issue — were sold in the first auction, the Treasury and Finance Ministry announced.

The Treasury bills will be settled on Dec. 18 and mature on Oct. 20, 2021.

The total tender amounted to 6.85 billion Turkish liras ($1.1 billion), with a 68.9 percent accepted/tendered rate.

The Treasury said the term rate of the 672-day Treasury bills was accepted at 5.77 percent, while the annual simple and compound interest rates were 11.55 percent and 11.88 percent, respectively.

In the second auction, the Treasury issued five-year CPI indexed bonds — semiannually, reopen, second issue — totaling 2.2 billion Turkish liras ($373.9 million).

The bonds will be settled on Dec. 18 with a maturity date of Nov. 11, 2024.

The total tender in the second auction amounted to 3.25 billion Turkish liras ($552.3 million), with a 68.2 percent accepted/tendered rate.

The term rate of 672-day government bonds was accepted at 1.46 percent, while the annual simple and compound interest rates were 2.92 percent and 2.94 percent, respectively.

The ministry also issued lease certificates worth 1.95 billion Turkish liras ($331.4 million) on Dec. 17.

Certificates will be settled on Dec. 18 with a maturity date of Dec. 15, 2021.

Under the ministry’s borrowing strategy, the Treasury projects holding 19 bond-auctions and a direct sale of lease certificates during the December-February period to borrow some 61.6 billion Turkish liras ($10.7 billion) from domestic markets.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/turkish-treasury-borrows-1-5b-from-domestic-markets-149978
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.

Turkish Lira: the most depreciated currency since the beginning of October

MuhasebeNews — Fri, 08 Nov 2019 08:00:48 +0000

Turkish Lira: the most depreciated currency since the beginning of October

Turkish Lira has been the most depreciated currency among the major currencies in October.

MSCI Emerging Markets Foreign Exchange Index, showing the average index of currencies in emerging economies, has gained 1.3 percent against the dollar since the beginning of October, while the Turkish Lira has decreased by 5%.

The increase in currencies of emerging economies is mainly based on the partial trade agreement concluded between the United States and China. The threat of sanctions against Turkey led to decrease in Turkish Lira.

Investment banks express negative opinions about Turkish Lira. JP Morgan stated that the Turkish Lira and Russian Rouble are the most vulnerable currency to be exposed to political uncertainties. Goldman Sachs warned economists about geopolitical risks and economic policies, while Rabobank said that Turkish Lira might be on the verge of a new exchange rate crisis.

Source: Euronews (link: https://tr.euronews.com/2019/10/15/turk-lirasi-ekim-ayi-basindan-bu-yana-en-fazla-deger-kaybeden-para-birimi-oldu)
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.

Bringing Export Proceeds to Turkey

MuhasebeNews — Fri, 17 Aug 2018 18:00:15 +0000

1.Savings of Export Proceeds
1.1. “Export proceeds can be freely saved by those concerned” within the scope of Communique numbered 2008-32/34 with Cabinet Decree related to “Decision about Doing Modifications on the Decision numbered 32 on Protection of the Value of Turkish Currency” dated 08.02.2008 and numbered 2008/13186. Those amounts can be either saved in foreign currency accounts or used by changing into Turkish Lira.

1.2. In the event of changing export proceeds into Turkish Lira, banks should prepare Foreign Exchange Purchase Document. It is possible to write the data related to company’s declaration and customs declaration on Foreign Exchange Purchase Document without demanding any other document from exporter companies which require purchase document in order to export.

1.3. If a company demands to prepare Foreign Exchange Purchase Document while exporting with Turkish Lira, it can do it. However, in case of export with private invoice, it is required to act upon views and instructions of Ministry of Economy and Undersecretariat of Foreign Trade.

1.4. In case of purchasing foreign exchange as export proceeds, it is required by banks that foreign exchange should be originated from abroad.

2.Collecting Export Proceeds
It can be collected;
2.1. via banks as a money order
2.2. in cash/effective (by the third persons who reside abroad or in Turkey and declare that they are importer, exporter or those who act on behalf of them)
2.3. via cheque (by the third persons who reside abroad or in Turkey and declare that they are importer, exporter or those who act on behalf of them)
2.4. via credit card

3.Export proceeds can also be collected as a credit given to real persons or legal entities or issued by the banks in Turkey or abroad.
4.It is possible to transfer export proceeds to Foreign Exchange Deposit Account and collect it wholly or in part from that account as export proceeds.
5.One can get export proceeds on behalf of manufacturing or exporting company from Foreign Exchange Deposit Account opened on behalf of a person or a company (which has a proxy) with foreign exchange on condition that power of attorney should be prepared before exporting.

3.Cash/Effective Collection of Export Proceeds
3.1. Customs Administration should detect with certified Cash Flow Statement whether effective export proceeds brought from abroad or not.
3.2. In order to get the effective being subject for Cash Flow Statement as export proceeds;
-It should be openly stated in the field of “Reason for Arrival” that the source of the effective is “export”.
-Identification of the person who submits Cash Flow Statement is compulsory.
-Written statement of exporter is also needed.

In the event that the amount of effective registered in Cash Flow Statement is completely attached to Foreign Exchange Purchase Document, it should be kept in by the bank without giving the original ones to those concerned. In the event that it is partially attached, the original one should be given to those concerned after writing a note on Cash Flow Statement about the amount attached to Foreign Exchange Purchase Document and make a photocopy of it.

3.3. Effectives delivered to the banks and registered in Cash Flow Statement can be sold to the banks by those concerned or can be transferred to Foreign Exchange Deposit Account opened in the name of foreign purchaser or exporter in Turkey. Afterwards, Foreign exchanges transferred to Foreign Exchange Deposit Account can be collected on behalf of exporting company. In the event that effectives registered in Cash Flow Statement is transferred in Foreign Exchange Deposit Account completely, it should be kept in the bank without giving the original ones to those concerned. In the event that it is partially collected, , the original one should be given to those concerned after writing a note on Cash Flow Statement about the amount attached to Foreign Exchange Purchase Document and make a photocopy of it.

3.4. Collecting the effective as export proceed by a bank (in the event that export proceed received as a transfer by those concerned is collected as effective from the bank) can be done providing that document of intermediary bank, which proves that effectives come from abroad, is submitted or the bank, which carries out transaction, gets the confirmation that foreign exchange (being a subject for effective) comes as a transfer.

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.

How to Get Refund of VAT Paid in Turkey?

MuhasebeNews — Thu, 16 Aug 2018 18:00:19 +0000

I have a refund regarding transportation activities:
– If your domicile, workplace, legal center and work center is not located in Turkey,
– If you are a resident of a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and services regarding the transportation activity are fuel, spare part, maintenance and repair,
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the İstanbul Tax Office Directorate Boğaziçi Corporate Tax Office Directorate or Marmara Corporate Tax Office Directorate with a petition.

I have a refund regarding participation to exposition, exhibition and fair:
– If your domicile, workplace, legal center or work center is not located in Turkey,
– If you are a resident of a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and the execution of services regarding the participation to exposition, exhibition and fair are exclusively related to these jobs (accommodation included),
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the tax office determined by the Tax Office Directorate/ Defterdarlık at the province where the exposition, exhibition and fair activities are executed with a petition.

I have a refund resulting from the touristic shopping:

You cannot get VAT refund in case you bought a touristic service.
– If you are a foreign national individual not residing in Turkey,

You can get refund of VAT providing that you get the goods out of Turkey within 3 months beginning from the date of the invoice or similar documents and if:

each invoice for the goods you purchased is over 100 TL (VAT exclusive),

the goods you purchased are not among the goods listed in Special Compsumtion Tax Law Annex I,

the seller from whom you purchase goods is a taxpayer who has the License of VAT Export Exception or is eligible to prepare the special invoicing.

The special invoice which is prepared by the seller for the sales under exception needs to involve the following information;
– Type and number of your passport,
– The branch of your bank and your account number in that bank.

The seller has to prepare the invoice as 4 copies and submit 3 of them to you.

If you want to get your refund from the bank branch at customs;

The salesperson should give you a cheque belong to a bank he has contract; indicating the date and number of the invoice and the total amount of VAT as TRY (Turkish Lira)

You may get your VAT refund from the bank branch at the customs after you get the cheque and the invoice approved by the customs officer.

If you want your refund to be paid to your bank account;

In case you sent your invoice; which is approved as you carry the goods with you, within 3 months following the date of your departure; your refund might be deposited to your bank account or might be sent to your address within 10 days after the salesperson receives the invoice indicates your refund amount.

If you want your refund to be paid in cash;

The salesperson may pay your refund in cash in case you bring the approved copy of your invoice to the salesperson within 3 months following the date of your departure.

What is Joint Stock Company?

MuhasebeNews — Sat, 17 Mar 2018 06:00:35 +0000

1- WHAT IS JOINT STOCK COMPANY?
1.1- Joint-stock company is a company whose capital is declared and divided into shares and who is only responsible for its assets because of its debts.
1.2- Shareholders are responsible to the company with their shares that they undertake.

***Except special provisions, these parts of provisions are applied to joint stock companies being subjected to special provisions.

2- WHAT ARE INCLUDED IN THE SUBJECT OF JOINT STOCK COMPANIES?
Joint stock companies can be established for every kind of legal economical purposes and subjects.

3- WHAT SHOULD BE THE AMOUNT OF CAPITAL IN ORDER TO ESTABLISH A JOINT STOCK COMPANY?
3.1- Registered capital, which is undertaken as a whole in articles of incorporation, cannot be less than 50.000 Turkish Lira. As for non-public joint stock companies which accepts registered capital system showing the maximum realm of authority of board of directors for capital increase, initial capital cannot be less than 100.000 Turkish Lira. Minimum capital amount can be increased by the Council of Ministers.
3.2- Within the scope of this law, initial capital in joint stock companies with registered capital is compulsory to provide in the establishment and when they move into this system. On the other hand, issued capital represents the total amount of nominal value of issued shares.
3.3- Unless non-public joint stock companies have necessary conditions, they are able to log out of registered capital system by getting permission from Ministry of Customs and Trade. Moreover, if they fail to fulfil the conditions while logging in the system, they can be logged out of the system by the Ministry even if they have no claim.

***Provisions of article 12 of Capital Market Law dated 28.07.1981 and numbered 2499 are reserved.

Source: Turkish Commercial Code

What are the Short-Term External Debt Developments in Turkey?

MuhasebeNews — Fri, 05 May 2017 07:42:56 +0000

Short-term external debt stockrecorded USD 101 billion at the end of February, indicating an increase of 3.1 percent compared to the end of 2016. Specifically, in this period, banks’ short-term external debt stock increased by 4.7 percent to USD 60 billion and other sectors’ short-term external debt stock increased by 0.9 percent to USD 40.9 billion.
Short-term FX loans of the banks received from abroad increased by 2.5 percent and FX deposits of non-residents within residents banks decreased by 0.8 percent in comparison to the end of 2016, recording to USD 15.1 billion and USD 13.1 billion, respectively. Banks deposits recorded USD 18.7 billion, increased by 8.6 compared to the end of 2016, while non-residents’ Turkish lira deposits increased by 7.8 percent and recorded 13.1 billion.
Trade credits due to imports under other sectors recorded USD 32.7 billion reflecting a decrease of 0.1 percent compared to the end of 2016.
From the borrowers’ side, the short-term debt of public sector, which mainly composed of public banks, increased by 3.5 percent to USD 16.8 billion and the short-term debt of private sector increased by 3.1 percent to USD 84.1 billion compared to the end of 2016.
From the creditors side, short-term debt to monetary institutions under private creditors item increased by 7.0 percent to USD 50.6 billion and short-term debt to non-monetary institutions decreased by 0.4 percent to USD 50.1 billion. Short-term bond issues decreased by 49.1 percent to 87 million as of the end of February decreasing from USD 171 million observed at the end of 2016. In the same period, short-term debt to official creditors recorded USD 259 million.
As of end of February, the currency breakdown of short-term external debt stock was composed of 51.4 percent US dollars, 30.1 percent Euro, 15.6 percent Turkish lira and 2.9 percent other currencies.
Short-term external debt stock on a remaining maturity basis, calculated based on the external debt maturing within 1 year or less regarding of the original maturity, recorded USD 161.2 billion, of which USD 20.5 billion belongs to the resident banks and private sectors to the banks’ branches and affiliates abroad. According to the borrowers, Public Sector accounted for 16.5 percent, Central Bankaccounted for 0.5 percent and Private Sector accounted 83 percent in total stock.

Source: Central Bank of the Turkish Republic – February 2017

What are the Developments In Private Sector’s Outstanding Loans Received From Abroad?

MuhasebeNews — Fri, 05 May 2017 07:32:22 +0000

As regards private sector’s outstanding loans received from abroad, long-term loansrecorded USD 202.7 billion as of February, increasing by USD 241 million whereas short-term loans (excluding trade credits) realized USD 15.2 billion, increasing by USD 902 million in comparison to the end of 2016.
From the borrower’s side, regarding long-term loans, banks’loan liabilities decreased by USD 193 million whereas bond liabilities amounted to USD 24.5 billion, increasing by USD 150 million in comparison to the end of 2016. In the same period, non-bank financial institutions’ loan liabilities decreased by USD 333 million; whereas bond liabilities amounted to USD 4.5 billion, decreasing by USD 51 million. Non-financial institutions’ loan liabilities recorded an increase of USD 592 million in comparison to the end of 2016; while bond liabilities amounted to USD 5.7 billion, as of February. Regarding short-term loans,banks’ loan liabilities realized as USD 10.8 billion increasing by USD 499 million; whereas non-financial institutions’ loan liabilities realized as USD 2.7 billion, increasing by USD 486 million in comparison to the end of 2016.
From the creditor’s side, regarding long-term loans, liabilities to private creditorsexcluding bonds amounted to USD 147.7 billion, decreasing by USD 31 million compared to the end of the previous year. Regarding short-term loans, liabilities to private creditors excluding bonds amounted to USD 14.8 billion increasing by USD 916 million compared to the end of the previous year.
Regarding the currency composition, of the total long-term loansin the amount of USD 202.7 billion, 60.9 percent consists of USD, 33.0 percent consists of Euro, 4.2 percent consists of Turkish lira and 1.9 percent consists of other currencies and of the total short-term loans in the amount of USD 15.2 billion, 50.9 percent consists of USD, 31.2 percent consists of Euro, 17.7 percent consists of Turkish lira and 0.2 percent consists of other currencies.
As for the sectoral breakdownby the end of February, of the total long-term loans in the amount of USD 202.7 billion, 52.0 percent consist of liabilities of the financial institutions, whereas 48.0 percent consists of the liabilities of the non-financial institutions. In the same period, of the total short-term loans in the amount of USD 15.2 billion, 82.1 percent consists of liabilities of the financial institutions, whereas 17.9 percent consists of liabilities of the non-financial institutions.
Private sector’s total outstanding loans received from abroad based on a remaining maturity basis; point out to principal repayments in the amount of USD 66.0 billion for the next 12 months by the end of February.

Source: Central Bank of the Turkish Republic – February 2017

Banking And Insurance Transactions Tax In Turkey!

MuhasebeNews — Wed, 03 May 2017 08:01:56 +0000

The subject of the tax is transactions and services performed by banks, bankers and insurance companies.
Taxpayers are banks, bankers and insurance companies.
All transactions and services performed by banks and insurance companies are subject to banking and insurance transactions tax (BITT) regardless of the nature of the transaction. There will be the tax upon the money, which they collect under the name of interest, commission and expenditure because of the services they performed on behalf of them. Bankers’ certain transactions and services performed and stated in the Law No. 6802 are the subject of the Tax. These are the bankers’ transactions and services. Other transactions of bankers are subject to VAT. The transactions of banks and insurance companies are exempt from VAT, but are subject to BITT, which is due on the gains of such companies from their transactions. The purchase of goods and services by banks and insurance companies is subject to VAT but is considered as an expense or cost for recovery purposes. The general BITT rate is 5% and some specific transactions are taxed at 1%. In addition, foreign exchange transactions are subject to 0 (zero) BITT according to the Council of Ministers Decision since 2008.

Taxation period in BITT is each month of the calendar year. Taxpayers declare their taxable transactions and pay their taxes by the evening of the 15th day of the following month.

***In 2015, 2.25% of the General Budget Tax Revenues comes from BITT and the total amount of tax revenues derived from BITT is 9.171.600.000 TL (Turkish Lira).

Source: Revenue Administration (Law No. 6802, Official Gazette No. 9362 dated 23.07.1956)

SPECIAL COMMUNICATION TAX IN TURKEY!

MuhasebeNews — Wed, 03 May 2017 07:43:46 +0000

Telecommunication services are subject to special communication tax. This tax is not included in the VAT base. Special communication tax rates are as follows:

a.On mobile electronic communication services (including the sales for pre-paid lines) %25,
b.The services regarding the transmission of radio and television broadcasts on satellite platforms and cable medium 15%,
c.The internet providing services by wired, wireless and mobile 5%,
d.Electronic communication services not listed above 15%.

Tax payers are the operators who provide the electronic communication services. The tax base for special communication tax is the same as the VAT base. Tax payers will declare the communication tax on the VAT returns and pay the accrued tax by the 15th day of the following month. Special communication tax is not deductible for income and corporate tax purposes.

***In 2015, 1.16% of the General Budget Tax Revenues comes from special communication tax and the total amount of tax revenues derived from special communication tax is 4.731.654.000 TL (Turkish Lira).

Source: Revenue Administration (Law No. 6802, Official Gazette No. 9362 dated 23.07.1956)

Israel Will Not Tax Turkish Tomatoes!

MuhasebeNews — Thu, 20 Apr 2017 14:25:27 +0000

The Israeli Ministry of Agriculture will not tax a certain amount of tomatoes imported from Turkey!

The Israeli Ministry has claimed that the price of the good increased excessively (the wholesale price of tomatoes reached 7 Turkish liras (7 shekels) per kilo in the country), as a result of that a certain amount of tomatoes impoted from Turkey will be exempt from tax.

Furthermore, Turkey is planning to expand the scope of Free Trade Agreement with Israel and increase the regional collaboration with the country.