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13 September 2018

Turkey requires contracts between Turkish residents to be valued in Turkish Lira

On 13 September 2018, the Turkish Presidential Decision amending Decree No. 32 Regarding the Protection of the Value of the Turkish Currency (Decree No. 32) was published in the Official Gazette.

Accordingly, under this Decision:

Effective as of 13 September 2018, except for cases to be declared by the Ministry of Treasury and Finance, for contracts concluded among Turkish residents, the contract price and other payment obligations arising from such contract shall not be determined in foreign currency or indexed to foreign currency. The following transactions between Turkish residents must be set in Turkish Lira:

  • The sale and purchase of movable and immovable property
  • Leasing of all kinds of movable and immovable property including vehicle and financial leasing
  • Employment, service and work contracts

For existing contracts, the agreed contract price and other obligations established in foreign currency, except for cases to be declared by the Ministry of Treasury and Finance, must be redefined by the parties in Turkish Lira within 30 days of 13 September 2018.

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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
  • Gamze Durgun
    gamze.durgun@tr.ey.com

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ATTACHMENT

PDF version of this Tax Alert

Document ID: 2018-6072

 
 

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