27.09.2024/49
Certain Participants Operating in the Istanbul Finance Center Will Be Able to Keep Books and Issue Documents in Foreign Currency
With the Tax Procedure Law General Communiqué No. 569 published in the Official Gazette dated 26.09.2024 and numbered 32674, the procedures and principles regarding the participants operating in the Istanbul Finance Center (IFC) to keep books and issue documents in foreign currency if they meet the conditions have been determined.
Accordingly
– It is possible for the participants who operate in the Istanbul Finance Center and whose activities are exclusively based on the activities that constitute the basis for the discounts and exemptions listed in the first paragraph of Article 6 of Law No. 7412 or the activities that constitute the basis for the earnings discount within the scope of subparagraph (i) of the first paragraph of Article 10 of the Corporate Tax Law No. 5520 dated 13/6/2006, to make their book entries in any foreign currency whose rate is determined daily by the Central Bank of the Republic of Turkey (CBRT) starting from the 2025 accounting period (from the accounting period starting in 2025 for those who are assigned a special accounting period).
– Participants whose activities are among the specified activities, but who have not yet received the participant certificate as of the date of publication of the Communiqué, but who start to work for the first time in this place by obtaining a participant certificate until 31.12.2024, will be able to keep their book records in any foreign currency whose exchange rate is determined daily by the Central Bank of the Republic of Turkey (CBRT) from the date they start their work.
– In addition to these activities, those who wish to keep their book records in foreign currency exclusively for their branches within the region from the participants who have other activities in this region or outside the region, will apply to the Revenue Administration through the tax offices to which they are affiliated in terms of income or corporate tax.
– In order for them to be eligible to apply, at least 30% of their capital as of the date of application must belong to enterprises whose domicile, legal and business center is not in Turkey; and
– At the end of the most recent accounting period prior to the date of application, at least 30% of the income from activities in the region must be from the activities specified in the second paragraph.
– No income requirement will be sought for first-time participants.
You can access the relevant Communiqué here.
Sincerely,
BİLGENER
