Taxation of Transfer of Shares of the Stock Companies
IN THE TURKISH TRADE LAW, SHARE CERTIFICATE PRESENTMENT AND CERTIFICATE PRESENTMENT ARE DESCRIBED AS FOLLOW.
ARTICLE 486- Shares presented before registration of capital increase are invalid, however, obligations subscription of share capital are valid. If there are bearer securities, board of management will distribute the share to the owners within three months.
Certificate can be published until the share certificate attained. The provisions regarding share certificates are executed to the certificates too. If the ones who have little shares in the company request, written share certificate can be attained and disturbed. The one, who attained share certificate before registration, will be responsible for the damage resulted from this action.
2-Taxation on share certificate or certificate:
If stock certificate registered, the stock certificates having had more than 2 years will not be liable to tax, in the case of having those disposed. (Tax Law number 232)Consequently, stock certificate disposal will be considered as other certificates.
Incomes attained by Istanbul stock exchange cannot be included in the annual income tax declaration and income tax stoppage.
3- Taxation when share certificate or certificate does not exist:
To Whoever and whenever Corporation Company co-founder sells his shares, the gain resulted from this operation will be liable to tax. (Income Tax, Article number 80/4)
In the calculation of share gaining, share cost will be liable to indexing; exception will not be included in share gaining.
(Indexing system and calculation exist in taxation parts.)
4- Temporary Certificate for Stock Companies
Since % 90 of the Stock Companies in Turkey are the family companies, according to the provisions of Turkish Trade Law, they operate without having share certificates or other certificates, however, according to the income tax law, the acquirement from selling shares will be liable to tax.
5- Is temporary certificate substitute for stock certificate?
In corporate companies, temporary certificate; whether it is written to bearer or to the actual person, is substituted for stock certificate.
Since Temporary certificates are substituted for stock certificates, they include right to share owning. However, eve though they are temporary, their validity is not temporary.
5- How are temporary certificates implemented?
Since Temporary certificates will be exchanged and substituted for stock certificates, they have to be implemented just like stock certificates in terms of form and scope. In which method, stock certificates will be implemented is defined in Turkish Trade Law. Because of the fact that certificates are exchanged for stock certificates, the date of gaining those certificates is the date of certificate gaining.
6- Is it mandatory to get permission in order to get temporary certificate.
It is not mandatory to get permission in order to get temporary certificate. It is possible for temporary certificates to be prepared on computers and duplicated.
7- Is income tax paid, in the case of selling temporary certificates?
In the case that temporary certificates are disposed, and in the case that temporary certificates are liable to tax, related provisions are executed.
After these specific days past, if these are disposed after two years, they will not liable to tax no matter how much is it.
According to the Income Tax Declaration serial number 232 of Ministry of Finance, in the taxation of temporary gains; the provisions of stock certificates will be executed, according to income tax law.
8- Which information has to be in temporary certificates?
Temporary Certificate
…Corporate
…ISTANBUL
Trade Register Number
Date of issuance
Serial Number
İtem Number
Total Rated Capital
Total Share Number
Value of Common Stock
Partner’s
Name Surname:
ID Number:
Residence Address
Number of Shares
Source: ISMMMO
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