On May 15, 2019, the Bank and Insurance Transactions Tax (“BITT”) rate for foreign currency sales, which has been applied as 0% over the sales amount in forex transactions since 2008, was increased to 0,1% with the Presidential Decree numbered 1106 and published in the Official Gazette on the same day.
However, the Decree also provides that the increase shall not apply to the following transactions:
- Forex sales between the banks and authorized institutions;
- Forex sales to the Republic of Turkey Ministry of Treasury and Finance;
- Forex sales by the banks to borrowers of foreign currency loans, on the condition that the selling bank is either a lender in the relevant loan transaction or an intermediary bank for the utilization of the loan.
Therefore, the BITT rate for the above-listed forex transactions shall remain as 0% over the sales amount.
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