Newsletter Re. Amendment Of Bitt Rate Applied To Foreign Exchange Transactions
With the Decree of the Presidency numbered 2568 published on the Official Gazette dated 24.05.2020, Decree annexed to the Decree of Council of Ministers dated 28.08.1998 and numbered 98/11591 regarding determination of rates of banking and insurance transactions tax (“BITT”) regulated under Article 33 of Expenditure Tax Law no. 6801 has been amended.
As of this amendment, foreign exchange transactions will be subject to 1% BITT over the sales amount, yet this rate shall be zero percent over the sales amount in the following transactions:
- Foreign exchange sales between banks and authorized institutions among one another,
- Foreign exchange sales to the Ministry of Treasury and Finance,
- Foreign exchange sales to the debtor by the lender or intermediary banks, with respect to the payment of the foreign exchange loan,
- Foreign exchange sales to entities with industrial registry certificate,
- Foreign exchange sales to exporters who are members of Exporters Unions.