Turkey has increased the bank and insurance transaction tax rate tax on individual foreign currency and gold purchases from 0.2% to 1%. The tax on foreign exchange purchases will not apply to interbank market and credit transactions, purchases by Turkey’s Treasury and Finance Ministry, to exporters or to those paying loans in foreign currencies.
The withholding tax on banks’ commercial paper has also been increased to 15% from 10%. The withholding tax on interest from short-term deposits and on income from commercial paper is now equal.
The above changes were published in the Official Gazette of May 24th.
The Turkish Treasury said that the increased tax proceeds will be used to help relieve the economic impact of the coronavirus pandemic on businesses and citizens.
Turkey’s banking watchdog, the Banking Regulation and Supervision Agency (BDDK), announced on May 21st, 2020, that as from May 22nd, purchases of 110 grams or more of gold by individuals or legal entities will be performed with the following working day’s value date. In other words, the gold quantity will be posted to the purchaser’s bank account the following day.