The Decree on Promotion of Foreign Logistics Distribution Networks Has Entered into Force with Presidential Decree numbered 5449.

The Decree on Promotion of Foreign Logistics Distribution Network, which entered into force with Presidential Decree numbered 3080, has been abolished by the Presidential Decree numbered 5449 and provisions on promotion of foreign logistics distribution centers has been re-regulated with the aforementioned Presidential Decree published on the Official Gazette dated 20.04.2022 and numbered 31815. The scope of the promotion provided by the Ministry of Commerce has been extended under the provisions in question; accordingly, it was regulated that certain cost and fees of various operations carried out for such distribution networks to be activated including installation, support, maintenance, rental, employment, information systems, license, permit, legal consultancy and marketing, shall be covered at variable rates and amounts.

The Constitutional Court Resolved that Processing Fingerprint Data of Employees for Business Hours Tracking Purposes Violates the Right to Personal Data Protection.

As per the resolution of the Constitutional Court dated 10.03.2022 and numbered 2018/11988, published on the Official Gazette dated 19.04.2022 and numbered 31814, it was resolved that processing the fingerprint data against the employee’s will, is deemed as violation of right to claim personal data protection under right to privacy set forth in article 20 of the Turkish Constitution. Considering the facts that the applicant who is a state officer, did not consent to the processing of his sensitive personal data, and processing biometric data for tracking business hours and overtimes is not regulated specifically and explicitly under the applicable legislation, it was argued that such processing does not conform with the principle of legality. Accordingly, in case biometric data of employees’ such as fingerprint or retina will be processed, employer is obliged to gain employee’s explicit consent which has to be proportionate and based on a legitimate purpose.

FX Payments are Prohibited in Sale of Goods Contracts to be Concluded Among Parties Resident in Turkey.

FX payments are prohibited in sale of goods agreements in accordance with the Communiqué on Amendment of the Communiqué No. 2008-32/34 on the Decree No. 32 on the Protection of the Value of Turkish Currency published on the Official Gazette dated 19.04.2022 and numbered 31814. Prior to the amendment entered into force, contract prices and contractual payment obligations could be determined in foreign currencies or indexed to foreign currencies in all sale of goods contracts, other than vehicle sales, to be concluded among parties that are resident in Turkey. While the amended Communiqué does not provide a ban for determination of contract price and other contractual payment obligations in foreign currencies or to be indexed to foreign currencies in aforementioned agreements, it is stipulated that as of 19.04.2022, the contract payment obligations can only be made in Turkish Lira.

Sports Clubs and Sports Federations Law, Regulating Sports Joint-Stock Companies has Entered into Force.

Sports Clubs and Sports Federations Law numbered 7405 has entered into force with the Official Gazette dated 26.04.2022 and numbered 31821.  The law regulates establishment of sports clubs, sports joint-stock companies, and sports federations together with their organisational bodies, income and expenses, budget and expenditure principles, duties, authorities and responsibilities, as well as methods and conditions of any donation to be made to such organisations. The law also incorporates the concept of sports JSCs and general provisions on establishment, and shareholding and management structure thereof. Accordingly, sports JSCs incorporated in accordance with Turkish Commercial Code numbered 6102 will be qualified as sports JSCs once registered by the Ministry of Youth and Sports. It is also stipulated that sports federations are entitled to set a requirement of being qualified as a sports JSC for playing in certain leagues and a minimum capital requirement not less than 1,000,000.00 TRL as paid capital for such JSCs. Further principles on minimum content of articles of association, shareholding structure, capital, and organizational bodies of sports JSCs, on the other hand, will be regulated by a communiqué to be issued by the Ministry.

Local Currency-Denominated Cash Lending of Banks and Financing Companies will be Subject to Reserve Requirement.

In accordance with the Amendment Communiqué on the Communiqué on Required Reserves published in the Official Gazette dated 23.04.2022 and numbered 31818, reserve requirement imposed on liabilities on balance sheet is now imposed on assets as well. It is set forth in the Communiqué that local currency-denominated cash lending of banks and financing companies will be subject to reserve requirements. It is also stipulated that the required reserve ratio shall be 10% for such assets, and the reserves will be restricted and maintained in cash in the accounts opened before the Central Bank of Turkey. The Communiqué also provides principles on calculation methods of assets subject to reserve requirement, reserve maintenance period, differentiation as per conversion rate, and temporary practices thereof.