UTTS Price Update, Foreign Currency Contracts, Crypto Asset Legislation, Share Buyback Decision

Vehicle Identification Unit (VIU) 2025 Year Price Discount Regulation

It has been decided to apply a discounted fee of 2,172 TRY (including VAT) instead of the 2,791.45 TRY (including VAT) VIU price determined for the year 2025. For the price difference of 619.45 TRY:

- If the installation has been completed and the invoice has been issued: Various supports and advantages will be provided up to this amount.

- If the installation has not been completed yet and the invoice has not been issued: A refund of 619.45 TRY will be made via bank transfer following the completion of the VIU installation procedures.

.

Income Tax Return Filing and Payment Periods Extended

The filing period for the Annual Income Tax returns regarding the 2024 calendar year, which were required to be filed until the end of the day on April 2, 2025, has been extended until the end of the day on Monday, April 7, 2025.

Similarly, the payment period for taxes accrued through these returns has also been extended until April 7, 2025.

.

Regulation Regarding Contracts in Foreign Currency or Indexed to Foreign Currency

Except for vehicle rental, real estate purchase-sale, and lease agreements, the ban on transactions in foreign currency and indexed to foreign currency in all other contracts has been lifted.

However, transactions made in foreign currency are legally and financially complex, and it is definitely recommended to obtain legal advice before drafting the contract.

.

Tax Regulation on Bank-Based Book-Entry Gold Buying and Selling

Starting from March 17, 2025, Foreign Exchange Transactions Tax (FETT) at the rate of 0.2% (per thousand 2) has started to be applied to gold buying and selling transactions carried out through banks.

.

Secondary Legislation Regarding Crypto Assets Published

Basis of the legislation: The relevant regulations have entered into force within the scope of the Capital Markets Law (CML). Intermediary institutions are subject to the Public Disclosure Platform (PDP) and must fulfill the determined information disclosure obligations.

Exchange shareholding change: Any changes to be made in the shareholding structure of cryptocurrency exchanges are now subject to the permission of the Capital Markets Board (CMB), and even the smallest share transfer must be reported to the Board.

Capital adequacy:

- At least 150 million TRY for crypto exchanges

- At least 500 million TRY for custody institutions has been determined.

Custody of customer assets:

- Exchanges are required to keep at least 95% of customer assets in a licensed custody institution.

- A maximum of 5% portion can remain in the exchange's own accounts.

Liquidity obligation: Exchanges are required to continuously maintain liquid reserves equal to 3% of the customer assets they hold.

Prohibited transactions: Leveraged transactions, derivative products, lending transactions, and short selling are prohibited.

Additional income ban: Exchanges will not be able to engage in activities such as deposit collection, commercial real estate trading, and fictitious transactions.

Independent audit: Exchanges will regularly undergo independent audits in terms of internal control and information systems.

Compliance period: A period until June 30, 2026 has been granted to comply with the new regulations.

.

Capital Markets Board (CMB) Principle Decision Regarding Buyback Programs

- Partnerships whose shares are traded on the stock exchange and their subsidiaries will be able to initiate a buyback program with a board of directors resolution.

- The nominal value limit determined as 10% of the capital has been lifted.

- Shares bought back within the scope of the Principle Decision cannot be sold for 30 days from the date they were bought back.

.

SSI Circular Regarding Termination Declaration Correction/Deletion Transactions

Within the scope of the new regulation regarding the correction or deletion of employment termination declarations submitted by employers:

If an employee's reason for leaving employment was initially reported to the SSI in a way that severance or notice indemnity would not be paid, but severance payment was ruled as a result of a mediation process or a court decision, the reason for leaving employment in the SSI records will be changed.

.

Featured Updates

Law No. 5510 Incentive Reduction: The 5% SSI premium incentive applied to private sector employers has been reduced to 4% as of March 2025. However, the incentive will continue to be applied as 5% for the manufacturing sector.

Inflation Accounting: The application of inflation accounting for the 2025 provisional tax periods has been abolished.

Electronic Ledger Obligation: As of January 1, 2026, share ledgers, board of directors resolution ledgers, and general assembly ledgers will now be kept exclusively in electronic media.

VAT Exemption Expanded: The scope of VAT exemption for social content producers, those providing services over the internet, and mobile application developers has been expanded.

BRSA's TL Loan Utilization Decision: The foreign currency asset limit applied regarding TL loan utilization for companies subject to independent audit has been lifted.

NACE Codes Updated: Changes have been made in the NACE codes used in the classification of economic activities.

.

Decision of Stay of Execution Regarding Prior Year Losses in Minimum Corporate Tax

With the Decision of the Council of State 3rd Chamber dated 10/02/2025 and numbered E. 2024/5700, the execution of the provisions of the General Communique on Corporate Tax No. 23 regarding the non-deductibility of prior year losses from the minimum corporate tax base has been stayed.

- The domestic minimum corporate tax application has entered into force for earnings obtained as of January 1, 2025, and will be applied for the first time in the 2025 first provisional tax return.

- As long as the decision of the Council of State 3rd Chamber to stay execution remains valid, taxpayers will be able to deduct prior year losses from the minimum corporate tax base.

- However, if the Council of State Tax Dissenting Chambers Board cancels the stay of execution, or if the Council of State 3rd Chamber makes a decision on the merits and finds the relevant explanations of the communique lawful, the deductions made by taxpayers in this direction may be criticized.

.

Invoice Format and Writing TRID Number

- In e-archive invoices to be issued up to 9,900 TRY including VAT to ultimate consumers, if the customer does not want to provide detailed information, the invoice can be issued by writing the phrase "FINAL CONSUMER". It is possible to write "11111111111" (11 pieces of the number 1) instead of the tax number.

- In e-archive invoices exceeding 9,900 TRY including VAT, the customer's name, surname, and tax number/Turkish ID Number must be written completely.

- In all invoices to be issued to tax payers, regardless of the amount, it is mandatory to include the name, surname, title, address, tax office, and tax identification number information.

.

Annual Leave Right

- Employees working between 1-5 years: 14 days

- Employees working between 5-15 years: 20 days

- Employees working 15 years and over: 26 days

The annual leave period for employees under 18 and over 50 has been determined as at least 20 days.

National holidays, weekend rest, and general holidays are not counted from the annual leave period.

The right to annual leave cannot be waived. It is not possible to pay wages instead of leave before the employment contract terminates.

Leaves can be divided into several parts with the agreement of the employee and the employer, provided that it is at least 10 days.

.

Weekend Rest and Wage

- The employee has the right to at least 1 day of uninterrupted 24-hour rest per week. It is not mandatory for the weekend rest to be Sunday.

- When uninterrupted 24-hour rest is not provided, the weekend rest is considered not granted.

- The employee has the right to weekend rest even if they have worked less than 45 hours per week.

- Even if they work for 10 minutes on the weekend rest, they are entitled to a 50% premium weekend rest wage.

- An employee who is not allowed to use weekend rest or whose wage is not paid can make a justified termination and claim severance pay and other rights.

.

I celebrate your and all your loved ones' Holiday on this occasion

.