Open menu
08October2018

Revisions on the Service, Employment and Relevant Agreements Within Turkish Currency Protection Law

Revisions on the Service, Employment and Relevant Agreements Within Turkish Currency Protection Law

As per the Presidential Decree announced on September 13, 2018, there has been uncertainty on the parties located in Turkey, which were to be prohibited from signing foreign currency-based contracts. The uncertainty has mostly raised a question for the parties that have a casual connection with parties outside Turkey, have non-Turkish shareholder/ownership, and/or have an obligation of foreign currency-based payments to abroad with the services, consultancy, and relevant agreements.

With the amendments and the Communiqué announced recently, it has been clarified which parties will be exempt from the prohibition.

Within the scope of the Communiqué dated October 6, 2018, announced on Official Gazette numbered 30557 on the Amendment on the Protection of the Value of Turkish Currency Law, the exempt cases which do not require the conversion of service, employment, and all relevant agreements (as per to the Law) to Turkish Lira have been clarified in detail. According to Article 16 on the Amendment, it is possible to have a foreign currency based or foreign currency indexed service and employment agreements for the subsidiaries, representative offices, liaison offices, entities that have a minimum 50% foreign shareholder that is located in Turkey, along with entities incorporated in free-zone regions.

You can refer to the full Communique in regards to our publication. In addition, to have further information on the employment contracts which are liable to amendments can be viewed from our informative memo..

In case you have queries with the relevant regulation and or need assistance, please contact us.

Written by Selim Tankut Akdağ, Posted in Foreign Exchange Legislation, Law on Protection of the Value of Turkish Currency

  • Notification!

    Contents provided in this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance put in the preparation of this article, CottGroup® and its member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject.

    Please consult your client representative if you are a customer of CottGroup® or consult a relevant party or an expert prior to taking any action in regards to the above content.

About The Author

Selim Tankut Akdağ

Certified Public Accountant, SMMM, Partner
This website is using cookies.
In this website, we use cookies to develop your user experience, obtain efficient work and track statistical data. You are agreeing to our use of cookies by browsing our website. Please review Çerezler (Cookies) page for detailed information of how we manage the cookies. This choice is valid for 30 days until you delete the cookies in your web browser.
x