05April2016

THE CRITERIA OF BEING SUBJECT TO INDEPENDENT AUDIT HAVE BEEN AMENDED

With the "Decision concerning the Amendment of the Decision on Determination of Companies which shall be Subject to Independent Audit" published in the official gazette on 19 March 2016, the criteria of being subject to independent audit have been amended. This decision entered into force to take effect as of January 1, 2016. According to the relevant decision;

  1. Companies which, themselves alone or together with their affiliates and subsidiaries, meet at least two of the following three criteria and companies within the scope of the list no. (I) annexed to the Decision no. 2012/4213 are subject to independent audit.

    1. Total assets are 40 million Turkish Lira and above
    2. Annual net sales proceeds amount to 80 million Turkish Lira and above
    3. Number of employees is 200 and above

  2. Out of the companies, of which minimum 25% of the capital directly or indirectly belong to professional associations, syndicates, associations, foundations, cooperatives, which are in the nature of public organization, and their parent organizations, those that meet at least two of the following three criteria.

    1. Total assets are 30 million Turkish Lira and above.
    2. Annual net sales proceeds amount to 40 million Turkish Lira and above.
    3. Number of employees is 125 and above

  3. Out of the companies which publish daily newspaper nation-wide, those that meet at least two of the following three criteria.

    1. Total assets are 40 million Turkish Lira and above.
    2. Annual net sales proceeds amount to 60 million Turkish Lira and above.
    3. Number of employees is 175 and above

  4. Excluding companies that have authorization without resource allocation and excluding call center companies; out of the companies which are subject to audit by Information and Communication Technologies Authority pursuant to Electronic Signature Law dated 15/1/2004 and numbered 5070, Electronic Communication Law dated 5/11/2008 and numbered 5809 and article 1525 of the Turkish Commercial Code no. 6102, those that meet at least two of the following three criteria.

    1. Total assets are 30 million Turkish Lira and above.
    2. Annual net sales proceeds amount to 60 million Turkish Lira and above.
    3. Number of employees is 200 and above

  5. Out of the companies which has a license, certificate or authorization certificate and which operate on the basis of regulations of Energy Market Regulatory Authority pursuant to the Electricity Market Law dated 20/2/2001 and numbered 4628, Natural Gas Market Law dated 18/4/2001 and numbered 4646, Petroleum Market Law dated 4/12/2003 and numbered 5015, Liquefied Petroleum Gases (LPG) Market Law dated 2/3/2005 and numbered 5307 and the Law on Amendment to Electricity Market Law (excluding public economic enterprises that are subject to the provisions of the Law no. 4046), those that meet at least two of the following three criteria.

    1. Total assets are 30 million Turkish Lira and above.
    2. Annual net sales proceeds amount to 60 million Turkish Lira and above.
    3. Number of employees is 200 and above

  6. Excluding subsidiaries and companies which are not active or the activities of which are temporarily suspended or canceled (including those of which the necessary articles of association amendments and similar procedural formalities have not yet been realized); out of the subsidiaries of the Savings Deposit Insurance Fund and the companies of which the audit and management have been taken over by the Fund pursuant to the abrogated Banking Law no. 4389 and Banking Law no. 5411, those that meet at least two of the following three criteria.

    1. Total assets are 30 million Turkish Lira and above.
    2. Annual net sales proceeds amount to 60 million Turkish Lira and above.
    3. Number of employees is 200 and above

  7. Out of the public economic enterprises that operate within the scope of the Decree Law concerning Public Economic Enterprises dated 8/6/1984 and numbered 233 and their affiliates, and the companies of which minimum 50% of the capital belongs to municipalities, those that meet at least two of the following three criteria.

    1. Total assets are 30 million Turkish Lira and above.
    2. Annual net sales proceeds amount to 40 million Turkish Lira and above.
    3. Number of employees is 125 and above

 

Please click here to view the law which includes the relevant regulation. Please contact your customer representative or an expert for further information.

Written by Mükremin Akbulut, Posted in Taxation Law

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