24.03.2022/20
The BITT Rate on Foreign Exchange Sales to Account Holders at the Expiration of the Maturity Period of Deposit Accounts Opened within the Scope of Conversion to Turkish Lira has been Determined as Zero (0) Percent
According to Article 33 of the Expense Tax Law No. 6802, BITT is applied at the rate of two per thousand on the sales amount in foreign exchange transactions. The President of the Republic is authorized to reduce the tax rate specified in the article to zero and increase it tenfold for foreign exchange transactions
Pursuant to the authorization in the aforementioned article, the Presidential Decree No. 5349 was published in the Official Gazette dated 23/3/2022 and numbered 31787 regarding the application of 0 (zero) percent BITT on foreign exchange sales made by the relevant bank to the account holders by using the account balance at the end of maturity of the Turkish lira accounts opened within the scope of supporting the conversion to Turkish lira deposits and participation accounts.
With the Presidential Decree No. 5349, the following subparagraph has been added to subparagraph e of the first paragraph of Article 1 of the Council of Ministers Decree dated 28.8.1998 and numbered 98/11591, in which the BITT rates are determined:
“Foreign exchange sales made by the relevant bank to the account holders by using the account balance at the end of maturity of the Turkish lira accounts opened within the scope of supporting the conversion to Turkish lira deposit and participation accounts pursuant to the provision of subparagraph (g) of paragraph (I) of the third paragraph of Article 4 of the Central Bank of the Republic of Turkey Law No. 1211 dated 14/1/1970.”
Accordingly, BITT will not be applied to foreign exchange sales made by banks at the maturity date of TL conversion accounts. BITT will be applied on foreign exchange sales made before maturity.
You can access the relevant Decision here.
Sincerely,
BİLGENER
