An amendment is made on the banking and insurance transaction tax (“BITT”) ratios for the foreign exchange transactions with the 1106 numbered Presidential Decree (the “Decree”) published on the 15.05.2019 dated and 30775 numbered Official Gazette. According to this, the BITT ratio which was applied as zero on the sale amount of foreign exchange transactions before, is determined as %0.1 as of 15.05.2019. Notwithstanding, BITT sale amount shall be applied as zero for the foreign exchange transactions listed below:

• The foreign exchanges to be made between banks and/or authorized institutions,
• Foreign exchange sales made to the Ministry of Treasury and Finance,
• Foreign exchange sales made to the credit debtor by the bank from which the foreign exchange credit is used or mediated.

A Decision of Joint Chambers of the Supreme Court (the “Decision”) with 2017/9 E. and 2018/10 K. Numbered, has been published on the 09.05.2019 dated and 30769 numbered Official Gazette.

The procedure and principles to be followed in the transactions regarding work permit and work permit exemptions to be given to foreign nationals, are regulated with 6735 numbered International Labor Force Law (the “Law”) and the Governing Regulation on the Law Regarding Work Permits of Foreign Nationals (the “Regulation”). According to these legislations, missing day reasons of the foreign nationals working at a workplace are not accepted excluding working while maternity and breast-feeding leave; and 30 days of declaration is sought in a month. Social Security Institution (“SSI”) has made a revision with its 18.03.2019 dated regulation on the missing day documents; and made some regulations regarding the demand of monthly premium and service document along with withholding and premium service declaration.

The 1013 numbered Presidential Decree published on 01.05.2019 dated and 30761 numbered Official Gazette, has made some alterations on the tax base, amount and ratio of VAT and Special Consumption Tax (“SCT”). The subject headings of these changes are as follows:

• VAT implementation on construction contract works to be made for Darülaceze Directorate;
• VAT implementation in curtain mechanisms;
• Minimum lump sum tax implementation for some tobacco products;
• SCT ratio differentiation on cell phones;
• Tax base change in the determination of SCT amount to be cancelled regarding the scrapping vehicles.