BITT Rate on Foreign Exchange Transactions is increased to 1%
Through the promulgation of the Presidential Decision No. 2568 (“Decision”), published in the Official Gazette dated 24th May 2020 and No. 31136, the Bank and Insurance Transactions Tax (“BITT”) rate, which should be calculated over the sale amount of foreign exchange transactions is increased to 1%.
The BITT rate will continue to be applied as 0% for foreign exchange sales made:
- Between banks and authorized institutions,
- To the Turkish Ministry of Treasury and Finance,
- To a loan debtor by banks from which the foreign currency loan is obtained or by banks acting as an intermediary on the obtainment of the foreign currency loan, for the purposes of payment of the foreign currency loan,
- To companies which have industrial registry certificate,
- To companies which are members of Exporters' Associations.
Additionally, through the letter dated 21.05.2020 sent by the Revenue Administration to the Banks Association of Turkey, it is evaluated that the registered gold sales transactions made without any physical delivery over the deposit and investment accounts at the banks are within the scope of the foreign exchange transaction.
The Decision entered into force through its promulgation on 24th May 2020. You may find the full text of the Decision here.