Executive summary

The Turkish Ministry of Treasury and Finance has issued a Communiqué regarding the protection of the Turkish currency in relation to export transactions. The Communiqué introduces an obligation for Turkish resident exporters to bring export proceeds into Turkey, sell them to banks and close the export accounts by the stipulated deadline. The Communiqué entered into force on 4 September 2018 and will be valid for six months.

Detailed discussion

According to the Communiqué, export proceeds generated from Turkish residents' export transactions should be brought or transferred directly to the related bank without any delay after payment by the importer. The export proceeds must be brought into Turkey within 180 days of the actual export transaction and it is obligatory to sell at least 80% of the proceeds to a bank.

Payment options for export proceeds are: (i) letter of credit, (ii) cash against documents, (iii) cash against goods, (iv) acceptance with credit, (v) documents against acceptance, (vi) goods against acceptance and (vii) advance payment.

It is essential to bring the export proceeds into Turkey in line with the declared Turkish lira or foreign currency. In addition, it is possible to bring the export proceeds in foreign currency into Turkey for the export transactions made based on Turkish lira.

In addition, it is compulsory to declare to the customs administration if the export proceeds will be brought to Turkey with a passenger.

For export proceeds paid in advance in foreign currency, the export transaction must be realized within 24 months.

Exporters will be liable for bringing the export proceeds into Turkey, selling them to banks and closing the export accounts by the deadline. Intermediary banks will be liable for monitoring the processes of bringing the export proceeds into Turkey and the sale to banks.

It is expected that a 5% penalty over the proceeds that are obliged to be brought to Turkey will be applied by the tax authority in the case of non-compliance with the provisions.

If the deadline for bringing the proceeds of export transactions which have been realized while this Communiqué is in force, ends after the expiration date of this Communiqué, the provisions of this Communiqué will remain in force.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S. Istanbul

• Ates Konca
  ates.konca@tr.ey.com
• Sercan Bahadir
  sercan.bahadir@tr.ey.com
• Yakup Günes
  yakup.gunes@tr.ey.com
• Gamze Durgun
  gamze.durgun@tr.ey.com

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ATTACHMENT

PDF version of this Tax Alert