BITT Rate on Foreign Exchange Transactions is Reduced to 2 per Thousand

Through the promulgation of the President Decision No. 3031 (“Decision”), published in the Official Gazette dated 30th September 2020 and No. 31260, the Bank and Insurance Transactions Tax (“BITT”) rate, which should be calculated over the amount of foreign exchange (foreign currency) transactions, is reduced to 2 per thousand.

Through the Decision, the BITT rate, which was applied as 1% over the sales amount related to foreign exchange transactions, is reduced to 2 per thousand.

However, no changes are made in the following foreign exchange transactions and the BITT rate will continue to be applied as 0% for these transactions:

  • Foreign currency sales among banks, authorized institutions or between banks and authorized institutions,
  • Foreign currency sales made to the Turkish Ministry of Treasury and Finance,
  • Foreign currency sales made to borrowers who have foreign currency loan, by the lender bank or the bank that mediate the use of foreign currency credits, intended for the payment of the foreign currency loan.
  • Foreign currency sales made to enterprises which have industrial registry certificate
  • Foreign exchange sales made to exporters who are members of Exporters' Associations.
  • Foreign exchange sales made to non-resident organizations that perform at least one of the activities accepted as financial institution activity in accordance with the Banking Law.

The Decree enters into force on the date of its publication.

You may find the full text of the Decree here.