The Interest, Dividends and Other Income Acquired Under Certain Circumstances Will Be Exempt from Corporate Tax in Accordance with the Amendment Made to the Corporate Tax Law Numbered 5520.

Pursuant to the provisional article 14 of the Corporate Tax Law numbered 5520 introduced with the Amendment Law on Banking Law, Certain Laws and Statutory Decree Numbered 655 published on Official Gazette dated 28.05.2022 and numbered 31849, the interest, dividends and other income acquired under certain circumstances will not be subject to corporate tax. The amendment provides that if corporations convert their foreign currencies, which are available on their balance sheet dated 31.03.2022, into Turkish Lira until the end of 2022, at the conversion rate under the incentive for conversion to Turkish Lira deposit or participation accounts and manage these amounts in Turkish Lira deposit or participation accounts with at least three months maturity; the interest, dividends, and other income earned at the end of maturity date including those arising from period-end valuation of such accounts, will be exempt from corporate tax. The President shall be entitled to enforce such exemption to the foreign currencies available at balance sheets dated 30.06.2022 and/or 30.09.2022. It is also stipulated that aforementioned exemptions will be implemented to the maturity-end recurring deposit accounts until the end of 2022.

The Regulation on Granting Sale Authority to the Debtor Pursuant to the Enforcement and Bankruptcy Law Has Been Entered into Force.

The regulation on granting sale authority to the debtor pursuant to the Enforcement and Bankruptcy Law has been entered into force with the Official Gazette dated 28.05.2022 and numbered 31849. The regulation introduces provisions on submission and registration of the request of sale, form and content of the certificate of sale authorization, and determination of minimum sales price concerning the sale of seized properties with consent by the debtor. In addition to the aforementioned provisions, the regulation also provides procedures and principles on payment of the sales price, submission of the file to the relevant court, and transfer of the property by the order of the court.

Tax Procedural Law General Communique Numbered 538 Imposes a Duty to Give Information on Intermediary Service Providers, Social Network Providers, and Hosting Providers Interceding for Publication of Announcements for Purchase, Sale or Rental of Movable and Immovable Properties, Goods, and Services.

Tax Procedural Law General Communique numbered 538 published on the Official Gazette dated 31.05.2022 and numbered 31852 imposes a duty on intermediary service providers, social network providers, and hosting providers interceding for publication of announcements for purchase, sale or rental of movable and immovable properties, goods, and services to give certain information to the Revenue Administration Directorate regarding their transactions conducted during each and every month of the calendar year. It is set forth with the communique that those who give imperfect or misinformation or does not fulfill their duty to give information at all as required by the communique shall be subject to the relevant criminal provisions of the Tax Procedural Law numbered 213.

Istanbul Financial Center Law Numbered 7412 Has Been Entered Into Force on 28.06.2022.

Istanbul Financial Center Law numbered 7412 was published at the Official Gazette dated 28.06.2022 and entered into force through its publication. The law stipulates the management and operation of Istanbul Financial Center together with the activities of the center and incentives, reductions, exceptions and exemptions on such activities.

The Amendment Law Enabling Immovable Asset Sales to be Performed by Notary Publics was Adopted.

Pursuant to the article introduced to the Notary Law No. 1512 with the Amendment Law on Judges and Prosecutors Law and Other Certain Laws entered into force with its publication at the Official Gazette dated 28.06.2022 and numbered 31880, it has been regulated that the notaries will be authorized to perform sales contracts on immovable assets. The regulation will enter into force as of 01.01.2023, thus, real estate sales could be made by notary publics, as well as land registry officers, by the aforementioned date.

The Rate of Increase in Residential Lease Has Been Limited to 25% of Current Rental Payment.

In accordance with the provisional article introduced to the Turkish Obligation Code numbered 6098 with the Amendment Law on Legal Practitioners’ Act and Turkish Obligation Code published at the Official Gazette dated 11.06.2022 and numbered 31863, the rate of increase in lease agreements has been limited. Pursuant to the amendment, the amount of the rental price in residential lease agreements for the renewed rental period by and between 11.06.2022 and 01.07.2023, shall be valid only if the rate of increase is at or under 25% of the previous year’s rental price. If the rate of change in the consumer price index for the preceding rental year’s twelve-month averages are lower compared to the 25% limit introduced with the amendment, this lower rate will apply. This rule shall also be applicable for the lease agreements longer than one year. The exceeding amount of the rental price shall be invalid in lease agreements where the rate of increase is more than the aforementioned rates.