According to the amendment that entered into force by being published in the Official Gazette on April 19, 2022 (“Amendment”) that amends the Communiqué No. 2008-32/34 on the Decree No. 32 on the Protection of the Value of Turkish Currency, sales prices of the movables sold as per the sales and purchase agreement made by and between the residents of Turkey are prohibited to be paid in foreign currency.
Prior to the Amendment, the sales prices and the payment obligations arising from such agreements, excluding the vehicle sales contracts, could have been determined in, or indexed to foreign currency, and the payments could have been received in foreign currency. As per the Amendment, even though the sales prices can still be determined in, or indexed to, foreign currency, the relevant payments can only be made or received in Turkish Lira.
In order to refrain from any disputes in calculation of the Turkish Lira equivalent of the sales price of a movable asset set forth in foreign currency, it is necessary to make the necessary amendments between the parties the exchange or index rate since Amendment does not bring any principle about the matter. Other matters regarding the Amendment, on the other hand, are clarified by the Ministry of Treasury and Finance with an announcement, dated 21 April 2022.
Thus, residents in Turkey,
- will be able to fulfill their payment obligations in foreign currency regarding negotiable instruments in foreign currency given within the scope of the performance of the obligations stem from the agreements signed before 19 April 2022;
- will be able to fulfill their payment obligations in foreign currency within the scope of invoices issued before 19 April 2022.
- sale and purchase of precious metals and precious stones carried in foreign currency and the payment obligations within the scope of the clearing of these transactions in Precious Metals and Precious Stones Market of Borsa İstanbul A.Ş. can be fulfilled in foreign currency.
- It has been stated that the term “movable” within the scope of the Amendment covers all kinds of things other than immovable assets.
- It is possible to fulfill the payment obligations in foreign currency of the sales and purchase agreements made by and between a resident and non-resident.
- It is prohibited to use checks and similar payment instruments issued in foreign currency on or after 19 April 2022 in order to fulfill the payment obligations subject to the movable sales contracts executed/to be executed among the residents of Turkey.
- Agreements regarding the transactions fall within the scope of the Law No. 4749 on the Regulation of Public Finance and Debt Management will not be subject to the Amendment, and therefore will not be subject to a payment prohibition.
- Within the framework of the Capital Market Law No. 6362 and the related regulations, it is possible to establish, issue, buy, and sell capital market instruments, including foreign capital market instruments, depositary receipts and foreign investment fund shares and to determine the liabilities regarding the transactions, in a foreign currency.
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