NEWS Finance        24/05/2020

Turkey’s tax rise on F/X and gold purchases & banks’ commercial paper

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.

Turkey’s net minimum wage has been raised 21.56% to TL 2,825.90 (USD 380) as of 01.01.2021       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate increases to 19.25% in August 2021       Turkey’s official unemployment rate shoots back up to 12% in July 2021       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 83,614,362 as of 2020 yearend       Foreigners visiting Turkey in 2020 falls by 71.7% to 12.7 million       Turkey’s private sector foreign debt is USD 173.9 billion as of 2020 yearend       Turkey’s economy grew by 1.8% in 2020       Foreign Direct Investment inflow to Turkey was USD 7.7 billion in 2020