Newsletter on BSMV Change in Foreign Exchange Transactions

With the decision of the President No. 2568 published in the Official Gazette dated 24.05.2020, the decision of the Council of Ministers dated 28.08.1998 and numbered 98/11591 on the determination of the rates of bank and insurance transactions tax (“ BITT ”) in Article 33 of the Expense Taxes Law No. 6802. Annex The amendment was amended.

Accordingly, 1% (one percent) BSMV will be applied in foreign exchange transactions over the sales amount, and will be applied as zero over the sales amount in the foreign exchange transactions listed below:

• Foreign exchange sales of banks and authorized institutions among themselves or to each other,
• Foreign exchange sales to the Ministry of Treasury and Finance,
• For the payment of foreign currency loans, foreign exchange sales to the borrower by the bank that used or used foreign currency loans,
• Foreign exchange sales to enterprises with industrial registration certificate,
• Foreign exchange sales to exporters who are members of Exporters' Associations.