21.01.2022/1
2022 Interest Rates to be Applied in Rediscount and Advance Transactions
Article 45 of the Law No. 1211 on the Central Bank of the Republic of Turkey stipulates that “The Bank may accept for rediscount commercial bills and documents to be issued by banks within the principles to be determined by the Bank, provided that they bear at least two signatures that the Bank considers to be valid.” Pursuant to this article, the Central Bank accepts commercial bills and certificates issued by banks for rediscount and meets the temporary liquidity needs of banks. The Central Bank can also make advances by taking the bills that it can accept for rediscount as collateral.
In terms of tax law, the concept of rediscount is used in relation to the valuation of receivables and payables linked to promissory notes. Articles 281 and 285 of the Tax Procedure Law No. 213 (TPL) stipulate that receivables and payables linked to promissory notes that are not due can be revalued to the value of the valuation day. According to the aforementioned articles, rediscounting is mandatory for banks and insurance companies and optional for others. However, taxpayers who rediscount their notes receivable are also obliged to rediscount their notes payable. In the rediscount calculation, in cases where the interest rate is not specified on the bill, the official discount rates of the Central Bank should be applied.
According to the TPL General Communiqué No. 238, where the procedures regarding the rediscount transaction are explained in detail, the interest rate determined by the Central Bank for advance transactions will be applied in the rediscount calculation and the internal discount method will be used. With the Communiqué published in the Official Gazette dated 02/01/2022 and numbered 31707, the discount interest rate to be applied in the rediscount transactions to be made against the bills with a maximum of 3 months to maturity was determined as 14.75 percent per annum, and the interest rate to be applied in advance transactions was determined as 15.75 percent per annum.
Accordingly, taxpayers who wish to rediscount their receivables and payables based on promissory notes should apply the 15.75 percent interest rate determined for advance transactions by internal discount method, unless the interest rate is specified on the promissory note.
You can access the relevant Central Bank of the Republic of Turkey Communiqué here.
Sincerely,
BİLGENER
