The Decision Amending The Decision On The Determination Of Companies Subject To The Independent Audit Was Published In The Official Gazette

With the Decision No. 9774 Amending the Decision on the Determination of Companies Subject to Independent Audit (“Decision No. 9774”) published in the Official Gazette dated May 1, 2025, and numbered 32887, the independent audit criteria previously determined by the Decision dated November 30, 2022, and numbered 6434 have been revised once again.

The thresholds used in determining companies subject to independent audit pursuant to Decision No. 6434 were most recently updated by the Decision No. 8313 Amending the Decision on the Determination of Companies Subject to Independent Audit, published in the Official Gazette dated April 6, 2024 (“Decision No. 8313”). With Decision No. 9774, the thresholds set out in Decision No. 8313 have been further increased, and the new thresholds are summarized below:

General Criteria for Being Subject to Independent Audit

The updated thresholds for being subject to independent audit, applicable to companies other than those listed in Annex (I) of Decision No. 6434—which are subject to independent audit regardless of any criteria—and companies considered publicly held under Capital Markets Law No. 6362, as well as those listed in Annex (II) of Decision No. 6434, are provided below.

 

Former Threshold

Revised Threshold

Total Assets

150 million Turkish Liras

300 million Turkish Liras

Annual Net Sales Revenue

300 million Turkish Liras

600 million Turkish Liras

Employee Count

150 employee

150 employee

 

Companies that exceed the thresholds of at least two of the three criteria above in two consecutive fiscal periods are subject to independent audit.

Companies listed in Annex (II)

Among the companies listed in Annex (II) of Decision No. 6434, those that exceed at least two of the three threshold criteria specified below for two consecutive fiscal periods shall be subject to independent audit starting from the following fiscal period. The updated thresholds for the companies listed in Annex (II) are provided below.

 

Former Threshold

Revised Threshold

Total Assets

60 million Turkish Liras

120 million Turkish Liras

Annual Net Sales Revenue

80 million Turkish Liras

150 million Turkish Liras

Employee Count

100 employee

100 employee

 

Companies deemed publicly traded under the Capital Markets Law

The thresholds applicable to companies whose capital market instruments are not traded on a stock exchange or other organized markets but are deemed publicly held pursuant to Capital Markets Law No. 6362 remain unchanged. Companies within this scope that exceed at least two of the three threshold criteria set forth below for two consecutive fiscal periods shall be subject to independent audit.

Total Assets

30 million Turkish Liras

Annual Net Sales Revenue

40 million Turkish Liras

Employee Count

50 employee

 

Decision No. 9774, which entered into force to be applied to fiscal periods starting on or after January 1, 2025, can be accessed at:https://www.resmigazete.gov.tr/eskiler/2025/05/20250501-8.pdf.

Best Regards,
Balay, Eryiğit & Erten

The Regulation Amending The Regulation On Special Equipment To Be Used In The Transportation Of Perishable Foodstuffs Has Been Published In The Official Gazette

The Regulation Amending the Regulation on Special Equipment to be Used in the Transportation of Perishable Foodstuffs was published in the Official Gazette dated 21.02.2025 and numbered 32820. (“Regulation”) The Regulation sets out the procedures and principles regarding the testing, approval, inspection and certification of special equipment to be used in the transportation of perishable foodstuffs. The important amendments are presented below for your attention.

Matters deemed important;

In Article 5 of the Regulation, the phrase “inspection centers” has been amended as “Business Authorization Certificate holders” and the following paragraph has been added to the same article.

  • Real and legal persons who will carry out perishable food transportation activities are obliged to have any of the authorization certificates appropriate to their field of activity according to the Road Transport Regulation.

It is mandatory to obtain a Perishable Food Transportation Certificate within 3 years from the date of entry into force of the Regulation for insulated equipment/vehicles manufactured in accordance with the relevant legislation and used for the transportation of perishable foods within the scope of the ATP Agreement with a model year prior to the effective date of the Regulation. In this context, the phrase “within 3 years from the date of entry into force of the Regulation” has been changed to “until 01/08/2025” and the deadline for obtaining a Perishable Food Transportation Certificate has been updated as August 1.

In Article 19 of the Regulation

  • It has been added that vehicles that are over 15 years old by model year and therefore cannot be issued a Perishable Food Transportation Certificate can continue to be used in perishable food transportation by replacing them with suitable superstructures and certifying them in accordance with the legislation.

With the amendment introduced in Article 23 of the Regulation, the period given to the business, which has been issued an administrative fine decision report for not meeting the conditions and acting contrary to the conditions, to correct the violation following the notification of the fine, has been increased from 30 days to 90 days.

The provisions on “Roadside Inspection” and “Obligation of the Record Keepers and Storage of the Record” in Articles 21 and 22 of the Regulation have been removed from the Regulation.

The Regulation is available at https://resmigazete.gov.tr/eskiler/2025/02/20250221-2.htm

Best Regards,
Balay, Eryiğit & Erten

 

The Communiqué Regarding The Maintenance Of Commercial Books Not Related To The Accounting Of The Business In Electronic Form Has Been Published In The Official Gazette

The Communiqué on the Maintenance of Commercial Books Not Related to the Accounting of the Business in Electronic Form (“Communiqué”), which includes important regulations regarding the creation, maintenance, preservation, and submission of commercial books in electronic form, has been published in the Official Gazette No. 32813 dated February 14, 2025.

Within the scope of the regulations introduced in the Communiqué, provisions have been established to allow the maintenance of the share ledger, board of directors’ resolution book, board of managers resolution book, and general assembly meeting and negotiation book in electronic form, while the obligation to keep electronic books has been gradually mandated.

Accordingly, as of July 1, 2025, companies whose establishment and amendments to their articles of association are subject to the approval of the Ministry of Trade, such as banks, financial leasing companies, holdings, insurance companies, independent audit firms, and companies subject to the Capital Markets Law, have been mandated to maintain their books in electronic form.

As of January 1, 2026, all newly established companies shall be required to maintain their books in electronic form.

In this context, companies established before January 1, 2026, and that are not subject to the Ministry of Trade’s approval for their establishment and articles of association amendments, may choose to maintain their books electronically. However, according to the Communiqué, companies that start maintaining their books electronically shall not be permitted to revert to maintaining them in physical form for any reason.

The Communiqué also stipulates that the company’s management body members and managers shall be responsible for ensuring that the books are maintained in the electronic system, the accuracy of the entries, and the potential damage that may arise from any discrepancies between the entries.

You can access the full text of the Communiqué, which will come into effect on July 1, 2025, at

https://www.resmigazete.gov.tr/eskiler/2025/02/20250214-7.htm

THE COMMUNIQUE REGARDING THE MAINTENANCE OF COMMERCIAL BOOKS NOT RELATED TO THE ACCOUNTING OF THE BUSINESS IN ELECTRONIC FORM HAS BEEN PUBLISHED IN THE OFFICIAL GAZETTE 14022025

Best Regards,
Balay, Eryiğit & Erten

The Regulation Amending The Regulation On Principles And Rules To Be Applied In Retail Trade Has Been Published In The Official Gazette

The Regulation Amending the Regulation on Principles and Rules to Be Applied in Retail Trade (“Amendment Regulation”) has been published in the Official Gazette dated 21.12.2024 and numbered 32759. The significant amendments introduced by the Amendment Regulation are presented below for your attention.

In accordance with the Amendment Regulation, the Regulation on Principles and Rules to Be Applied in Retail Trade (“Regulation”) paragraph (a) of the second subparagraph of Article 12/B has been amended as follows:

a.       a) a) Excluding the sales of mobile phones in the nature of refurbished products carried out by refurbishment centers or authorized dealers in accordance with the Regulation on the Sale of Refurbished Products published in the Official Gazette No. 31221 dated 22/8/2020, mobile phone sales with a price above twelve thousand Turkish Lira are subject to three months. a.       a) Excluding the sales of mobile phones that are in the nature of refurbished products and priced above twenty-five thousand Turkish Lira, and the sales of mobile phones that are not of this nature but are priced above twenty thousand Turkish Lira, mobile phone sales are subject to three months.

 

With this amendment, an installment limit has also been introduced for the sale of refurbished mobile phones. Refurbished mobile phones over 25.000₺ can only be sold in 3-month installments. Before the amendment, refurbished mobile phones could be sold in 12-month installments, but this has been limited.

In addition, the 3-month installment limit for the sale of mobile phones that are not refurbished products has been increased from 12,000₺ to 25,000₺.

Paragraph 3 of the same article of the Regulation is amended as follows

(3) The installment period cannot exceed forty-eight months for vehicle sales where the final invoice value is one hundred and twenty thousand Turkish Liras or below, thirty-six months for vehicle sales priced above one hundred and twenty thousand Turkish Liras but not exceeding three hundred thousand Turkish Liras, twenty-four months for vehicle sales priced above three hundred thousand Turkish Liras but not exceeding seven hundred and fifty thousand Turkish Liras, and twelve months for vehicle sales priced above seven hundred and fifty thousand Turkish Liras but not exceeding one million five hundred thousand Turkish Liras. No installment plans are allowed for vehicles with a final invoice value exceeding one million five hundred thousand Turkish Liras. (3) The installment period cannot exceed forty-eight months for vehicle sales where the final invoice value is four hundred thousand Turkish Liras or below, thirty-six months for vehicle sales priced above four hundred thousand Turkish Liras but not exceeding eight hundred thousand Turkish Liras, twenty-four months for vehicle sales priced above eight hundred thousand Turkish Liras but not exceeding one million two hundred thousand Turkish Liras, and twelve months for vehicle sales priced above one million two hundred thousand Turkish Liras but not exceeding two million Turkish Liras. No installment plans are allowed for vehicles with a final invoice value exceeding two million Turkish Liras.

 

With this amendment, a 2025 revision has been made regarding the monetary thresholds. However, no changes have been made to the general nature of the provision.

You can access the full text of the Amendment Regulation at www.resmigazete.gov.tr/eskiler/2024/12/20241221-3.htm

THE REGULATION AMENDING THE REGULATION ON PRINCIPLES AND RULES TO BE APPLIED IN RETAIL TRADE HAS BEEN PUBLISHED IN THE OFFICIAL GAZETTE 21122024

Best Regards,
Balay, Eryiğit & Erten

The Regulation On Market Surveillance And Control Of Products Offered To The Market Via Remote Communication Tools Has Been Published In The Official Gazette

The regulation on market surveillance and control of products offered to the market via remote communication tools

The Regulation on Market Surveillance and Control of Products Offered to the Market via Remote Communication Tools (“Regulation”) was published in the Official Gazette No. 32707 on 30.10.2024 and will enter into force on 01.04.2025. The Regulation introduces significant changes in the regulation and supervision of products sold through remote communication channels. The aim of the Regulation is to enhance consumer safety and strengthen market surveillance. Key changes in the Regulation are presented below for your attention.

Key points in the Regulation:

Under Article 5 of this Regulation,

It is regulated that in order for a product to be offered to the market or made available in the market through remote communication tools, the product must comply with the relevant technical regulations or the General Product Safety Regulation.

In sales made through remote communication tools, economic operators who meet at least one of the following conditions are considered to target final consumers residing in Turkey:

a) Offering a Turkish language option.

b) Providing the option to display the price in Turkish Lira.

c) Accepting payments in Turkish Lira

ç) Providing the option to ship to addresses in Turkey.

d) Sending physical deliveries to final consumers in Turkey.

e) In online sales, the domain name must be registered in geographic areas where shipment to Turkey is possible. With this provision, economic operators who meet these conditions and make sales via remote communication tools can be considered to have placed their products on the market and targeted final consumers residing in Turkey.

In the Paragraph 4 of the same article, a requirement has been introduced that products listed on the Ministry of Trade’s website can only be made available on the market through remote communication tools if there is an economic operator established in Turkey. In the Paragraph 5 of the article, these economic operators are specified.

Article 10 of this Regulation defines the obligations of the intermediary service provider:

In the Paragraph 2 of the article, the intermediary service provider is required to ensure easy access to information regarding products on their online platforms and to fulfill content removal requests from the competent authorities within 24 hours at the latest.

  • In the Paragraph 3 of the article, it is stipulated that if the intermediary service provider becomes aware of the non-compliance of a product on the market, they must immediately take action to remove the content or block access to it in the electronic commerce environment and inform the competent authority.
  • According to the regulation in the Paragraph 5 of the article, the intermediary service provider will establish an electronic contact point to enable final consumers to communicate directly and promptly regarding product safety. This will allow consumers to submit complaints and notifications related to the safety and compliance of the products.

Finally, the Regulation outlines the obligations of authorized representatives, performance service providers, and intermediary service providers, as well as the duties, powers, and responsibilities of the competent authorities. It is also regulated that administrative sanctions will be imposed on those who act in violation of the Regulation or fail to fulfill their obligations under the legislation.

The full text of the Regulation can be accessed at the address https://resmigazete.gov.tr/23.10.2024.

THE REGULATION ON MARKET SURVEILLANCE AND CONTROL OF PRODUCTS OFFERED TO THE MARKET VIA REMOTE COMMUNICATION TOOLS HAS BEEN PUBLISHED IN THE OFFICIAL GAZETTE 30102024

Best Regards,
Balay, Eryiğit & Erten

The Law On The Amendment Of The Law On Consumer Protection And Some Other Laws Has Been Published In The Official Gazette

On 30.10.2024, The Law on the Amendment of the Law on the Protection of Consumers and Certain Laws was published in the Official Gazette. The important amendments are presented to your attention as follows.

Amendments to Law No. 6502 on Consumer Protection;

  • The expression “or distance” has been added next to the expression “written” in Article 22/3 of the Law. Thus, in distance sales contracts, informations also can be provided in writing or digitally.
  • The phrase “or by permanent data storage” has been added to Articles 31 and 39 of the Law. Thus, after digital documents are transmitted to consumers, this information can be permanently stored.
  • According to Article 47/A added to the Law,

Companies that will engage in direct sales activities are required to be capital companies.

  • By introducing the prohibition of compulsory purchase and membership fees, it has been added to the article that direct sellers may not impose a compulsory entrance fee or any purchase condition for consumers to join or remain in the system. In addition, it has been added that financial obligations such as packages, dues or renewals that are not foreseen to be sold to consumers for entry into the direct selling system cannot be imposed.
  • Consumers have the right to withdraw without penalty within 30 days for products or services purchased within the scope of direct sales without any justification. Within this period, the consumer may notify the direct sales company or the seller by exercising the right of withdrawal.
  • Direct selling companies are obliged to establish an information system where consumers can submit their requests.

The first paragraph of Article 47/A defines the direct selling system. “The direct sales system is the sales system created by the direct sales company and in which direct sellers, who are not employed with an employment contract and who operate under the names of independent representatives, distributors, consultants and similar names in return for benefits such as commissions, premiums, incentives and rewards, market goods or services to consumers”. It is stipulated that administrative fines will be imposed on those who violate the law specified in the second and third paragraphs of the mine by amending paragraph 77/17 of the article of the same law.

  • Administrative fines within this scope;
  • For direct sales companies, an administrative fine of 5 million Turkish Liras will be imposed for each violation.
  • For those who violate the fourth, fifth and seventh paragraphs of the same article, a fine of 2,200 Turkish Liras will be imposed for each violation detected.
  • Companies that violate the sixth paragraph of the same article will be given three months to correct their deficiencies. If the conditions to be corrected are not corrected within this period, an administrative fine of 1 million Turkish Liras will be imposed.

The law stipulates that the amount of fines to be imposed for violations of the law will be determined by taking into account the severity of the violations, the profit or loss obtained as a result of the violation, and the economic situation of the companies committing the violation.

The full text of the Law can be accessed at https://resmigazete.gov.tr/eskiler/2024/10/20241030-4.htm

THE LAW ON THE AMENDMENT OF THE LAW ON CONSUMER PROTECTION AND SOME OTHER LAWS HAS BEEN PUBLISHED IN THE OFFICIAL GAZETTE 30102024

Best Regards,
Balay, Eryiğit & Erten

The Regulation On The Withdrawal Of Medicinal Products For Human Use And Special Medical Purposes Has Been Published In The Official Gazette

The Regulation on the Withdrawal of Medicinal Products for Human Use and Foods for Special Medical Purposes (“Regulation”) was published in the Official Gazette No. 32701 on October 23, 2024. These regulations draw attention as an important regulation in the field of health. The Regulation aims to protect public health and increase consumer safety by regulating the withdrawal of human medicinal products and foods for special medical purposes. The important amendments made by the Regulation are presented below.

The Regulation has been prepared based on the Law on Pharmaceutical and Medicinal Preparations dated 14/5/1928 and numbered 1262 and Articles 508 and 796 of the Presidential Decree No. 4 on the Organization of Institutions and Organizations Affiliated, Related, Associated Institutions and Organizations and Other Institutions and Organizations. This Regulation covers the withdrawal activities of medicinal products for human use licensed or authorized by the Agency, active substances used in their production and foods for special medical purposes, as well as the production, placing on the market and keeping on the market of the relevant products. Amendments made within this scope;

In Article 4 of this Regulation, definitions regarding the Regulation are explained. Namely;

  • Blocking: Stopping the movement of products in the supply chain that pose a risk to public health.
  • Withdrawal: The collection of faulty or suspect products by the marketing authorization/permit holder.
  • Withdrawal Evaluation Commission: The commission that evaluates notifications and complaints and makes recall decisions.
  • Classification Of Recalls: Level of recall according to the degree of health hazard of the product.
  • Voluntary Withdrawal: Withdrawal proposed by the marketing authorization/permit holder.
  • Product Suspected To Be Faulty: A product that may pose a danger to consumer health.
  • Defective Product: A product that poses a danger to consumer health or where quality defects have been identified.
  • Pharmaceutical Tracking System (PTS): Centralized system that tracks the movement of medicinal products for human use.
  • Good Manufacturing Practices: A system that ensures production and control in accordance with quality standards.
  • Institution: Turkish Medicines and Medical Devices institution.
  • Global Commercial Item Number (GTIN): The identifying number on the barcodes of commercial products.
  • Batch Number: A number obtained in the production cycle that identifies homogeneity.
  • Market Control: Activities carried out to ensure that products comply with legislation.
  • Registration/Permit Holder: The person or organization holding the registration or authorization for the product.
  • Product: Medicinal products for human use and foods for special medicinal purposes that have been authorized

Duties and Responsibilities, Notifications and Decision Process are regulated in the Second Part of the Regulation on the Withdrawal of Medicinal Products for Human Use and Foods for Special Medical Purposes

Article 5 of this regulation describes the procedures for the evaluation of products suspected to be faulty or faulty during the market control and inspection activities of the Authority. These are as follows;

  • Information Request: Requesting information and explanations from the license/permit holder if deemed necessary.
  • Explanation Evaluation: Evaluate the license/permit holder’s explanations and suggestions and request additional information.
  • Withdrawal Decision: Deciding on withdrawal and initiating the procedures.
  • Drug Tracking System (ITS): Carrying out blocking or withdrawal procedures.
  • Follow-up and Audit: Monitoring and auditing the timely execution of withdrawal procedures.
  • Production Suspension: To stop the production or import of the faulty product when necessary.
  • Precautionary Assessment: To assess whether the necessary measures have been taken to ensure that the nonconformity does not recur.
  • Withdrawal Termination: Termination and monitoring of the recall.

Article 6 of the Regulation explains the obligations of registration/permit holders regarding the withdrawal of defective products. As follows;

  • Withdrawal Plan: Have an effective withdrawal plan.
  • Record Keeping: Keep distribution records and withdrawal-related documentation for five years.
  • Announcement and Feedback: Ensure that the withdrawal is carried out effectively.
  • Rapid Notification: Providing feedback as soon as possible when requested by the organization.
  • Life Threatening Information: To provide immediate information in life-threatening situations.
  • Withdrawal Class and Level: Providing recommendations in case of voluntary withdrawal.
  • Export Information: To inform the license holder of the relevant country in case of export of withdrawn products.

Article 7 of the Regulation describes the notification process for defective products. It is as follows

  • The registration/permit holder should examine notifications and complaints in detail.
  • Notifications to the provincial health directorate are forwarded to the Agency.
  • Notifications can be made directly to the Agency.  

Article 8 of the Regulation states that the Withdrawal Evaluation Commission is managed by the Presidency that carries out market control activities and the related procedures are explained. As follows;

  • Research Expansion: May request additional information from the license/permit holder.
  • Blocking Procedure: May block the distribution of products via ITS.
  • Sampling: Sampling and analysis for other batch numbers.
  • Withdrawal Decision: Can make a withdrawal decision and request the relevant forms.
  • Good Manufacturing Practices: Can initiate an audit at the production facility.
  • Withdrawal Practices: Initiate procedures for the withdrawal of products

Section Three of the Regulation on the Withdrawal of Medicinal Products for Human Use and Foods for Special Medical Purposes regulates the Classification, Levels and Reasons for Withdrawal.

In Article 9 of the Regulation; it is explained that the class of withdrawal is determined according to the risk of harm to consumer health and the nature of the defect of the faulty or suspected faulty product. The classes are as follows;

  • First Class: Conditions that may cause serious and life-threatening health problems.
  • Second Class: Situations related to temporary and treatable health problems.
  • Third Class: Situations where the use of the product is not harmful to health.

Article 10 of the Regulation describes the levels of the distribution chain to be covered by the withdrawal. These are as follows;

  • A Level: Includes all users and recipients that can be contacted.
  • B Level: All places that supply the end user with the product.
  • C Level: Includes pharmaceutical retailers.

In Article 11 of the Regulation; the reasons for withdrawal are explained. These reasons are as follows; Quality defects, Effectiveness and safety problems, Out-of-specification results, Packaging defects, Non-compliance with license/permit information, Non-compliance with legislation and Non-compliance with Good Manufacturing Practices.

Withdrawal processes are initiated as follows;

  • Initiation by the Agency: The Agency notifies the marketing authorization/permit holder and requests the completion of the withdrawal form within five working days at the latest.
  • Initiation by the Marketing Authorization/Permit Holder: The marketing authorization/permit holder notifies the Agency; the proposed withdrawal class and level may be considered by the Agency.

Section Four of the Regulation on the Withdrawal of Medicinal Products for Human Use and Foods for Special Medical Purposes regulates the Announcement, Execution and Completion of the Withdrawal.

Article 12 of the Regulation explains the Announcement of Withdrawal. It is as follows;

  • Announcement Process: When a withdrawal decision is taken, the marketing authorization/permit holder is obliged to notify the situation as soon as possible in accordance with the announcement text in Annex-2. The announcement should be made in writing and a copy should be sent to the Agency. Additional communication methods may also be used.
  • Advertising Prohibition: The withdrawal announcement cannot contain advertising elements; the announcement is for informational purposes only.
  • Public Information: The Agency will inform the public about first class recalls through its official website.

Article 13 of the Regulation explains the Execution of the Withdrawal. It is as follows;

  • First Class: Must be controlled within 24 hours.
  • Second Class: It should be under control within 48 hours.
  • Third Class: Must be brought under control within 72 hours. The license/permit holder must provide periodic information to the Agency on the procedures.” It is regulated as follows. 

Article 14 of the Regulation states that the license/permit holder shall prepare and submit a preliminary report to the Agency within 10 working days.  

Article 16 of the Regulation states that the withdrawn product will be destroyed after being identified by the provincial/district health directorate.

Article 17 of the Regulation states that the registration/permit holder shall submit the final report on the completion of the withdrawal to the Agency within 12 weeks.

Section Five of the Regulation on the Withdrawal of Medicinal Products for Human Use and Foods for Special Medical Purposes regulates sanctions.

Article 18 of the Regulation;

  • Compliances: Articles 18 and 20 of Law No. 1262 will be applied for non-compliances detected about the license/permit holder.
  • Penalties for Withdrawals: Penal sanctions will be determined for second and third class withdrawals, taking into account the voluntary withdrawal status.
  • Contrary Behavior: Penalties will be imposed on the license/permit holder, manufacturer, pharmaceutical trade and pharmacies that continue to sell the faulty batch after the recall announcement or do not implement the recall decision within the framework of the following legislation: Law No. 1262, Product Safety and Technical Regulations Law No. 7223, Turkish Criminal Code No. 5237, Misdemeanor Law No. 5326

These regulations provide an effective control mechanism to protect public health and ensure product safety. It is of utmost importance that registration/permit holders comply with the withdrawal processes and fulfill the requirements of the legislation.

The full Regulation is available at    https://resmigazete.gov.tr/23.10.2024  

THE REGULATION ON THE WITHDRAWAL OF MEDICINAL PRODUCTS FOR

The Regulation on the Withdrawal of Medicinal Products for Human Use and Foods for Special Medical Purposes (“Regulation”) was published in the Official Gazette No. 32701 on October 23, 2024. These regulations draw attention as an important regulation in the field of health. The Regulation aims to protect public health and increase consumer safety by regulating the withdrawal of human medicinal products and foods for special medical purposes. The important amendments made by the Regulation are presented below.

Best Regards,
Balay, Eryiğit & Erten

The Income Tax General Communiqué (Serial No: 328) Has Been Published In The Official Gazette

The Income Tax General Communiqué (Serial No: 328) (“Communiqué”), prepared by the Ministry of Treasury and Finance, Revenue Administration, has been published in the Official Gazette No. 32695 on October 17, 2024. These regulations are based on the Income Tax Law No. 193 and other relevant legislation. The aim of the regulations introduced by Communiqué is to eliminate the period of cash rent payments. These regulations cover topics such as the declaration of rental income, exemptions, and tax calculation methods. It is of critical importance for property owners to fulfill their tax obligations under this communiqué. The significant changes introduced by the communiqué are presented below for your attention.

The Communiqué, referring to Article 66 of the Income Tax Law No. 193, regulates the obligation of taxpayers to declare their rental income. The changes made in this context are as follows:

In the First Section and the second paragraph of Article 1 of this Communiqué, it is stated:”Based on the authority granted to our Ministry, the collection and payment of transactions related to the rental of workplaces and residential properties carried out by income and corporate tax taxpayers, as well as non-taxpayers, must be documented by the following institutions:

  • Banks, as defined in the Banking Law No. 5411 dated 19/10/2005,
  • Turkish Post Office, established under the Postal Services Law No. 6475 dated 9/5/2013.

Failure to comply with the documentation requirement will result in the application of penal sanctions, as explained in this section, which forms the purpose and scope of the Communiqué.”

Under the provisions of this article, it is important for property owners/taxpayers to receive the aforementioned rent payments through the banks, postal, or telegraph services listed above in order to avoid any penal sanctions being applied to them.

The Second Section of the Income Tax General Communiqué (Serial No: 328) Regulates the Scope of the Documentation Requirement and the Application of Penal Sanctions.

In Article 2 of the Second Section of this Communiqué, the following regulations have been made:

  • It is mandatory for both landlords and tenants of residential and commercial properties to document rental-related payments and collections with documents issued by banks or the Turkish Post Office,
  • Collections and payments related to short-term rental agreements such as weekly, daily, or similar rentals are also subject to the documentation requirement,
  • Payments and collections made through legal means, such as through court or enforcement proceedings, or in-kind, related to the rental fee, are not subject to the documentation requirement,
  • In the case of leasing a property with shared ownership, if the full rental fee is paid to one of the lessors through a bank or the Turkish Post Office, it will be considered as fulfilling the documentation requirement,
  • As payments and collections made using methods such as deposits, remittances, EFT, checks, or bank and credit cards via banks or the Turkish Post Office result in the issuance of receipts or account statements, these documents are considered valid proof. Payments made via bank internet branches are also within the same scope. If individuals make rental payments by visiting bank branches, providing their identity number, tax identification number, name and surname/title, along with the “rent payment” explanation and depositing the amount into the landlord’s account, it will be considered that the documentation obligation has been fulfilled.

If This Obligation is not Complied with, the Penal Sanctions to be Applied to Both the Lessor and the Tenant are Specified in Article 3 of the Communiqué.

  • For each person who does not comply, a special administrative penalty will be imposed for each transaction as follows:
  • For first-degree merchants and self-employed professionals, the penalty will be 20,000 Turkish Liras,
  • For second-degree merchants, record-keeping farmers, and those whose income is determined through the simple method, the penalty will be 10,000 Turkish Liras,
  • For those not included in the above categories, the penalty will be 5,000 Turkish Liras or, at a minimum, 10% of the transaction amount, whichever is higher.

However, the total amount of special administrative penalties to be imposed within a calendar year cannot exceed 20 million Turkish Liras.

If individuals make a payment in violation of the documentation requirement and report the situation to the authorities within five business days following the payment, no special administrative penalty will be imposed on the person making the payment, in accordance with this regulation.

For those who do not comply with the obligation to document payments and collections through documents issued by banks, similar financial institutions, or postal authorities, the penalty amounts, both minimum and maximum, will be increased each year according to the revaluation rate announced under Law No. 213, based on the previous year’s data. These adjustments will be applied starting from the beginning of the calendar year.

You can access the full Communiqué at the address: https://www.resmigazete.gov.tr/eskiler/2024/10/20241017-5.htm

THE INCOME TAX GENERAL COMMUNIQU SERIAL NO 328 HAS BEEN PUBLISHED IN THE OFFICIAL GAZETTE 17102024

Best Regards,
Balay, Eryiğit & Erten

A Regulation Amending The Regulation On The Implementation Of The International Labor Law Has Been Published

The Regulation Amending the Implementation Regulation of the International Labor Law (“Regulation”) was published in the Official Gazette No. 32693 on October 15, 2024. The significant changes introduced by the Regulation are presented below for your attention.

The Regulation concerns the determination, implementation, and monitoring of policies related to the international labor force in accordance with the International Labor Law. It also addresses the foreigners applying for work permits and work permit exemptions, as well as the individuals and legal entities who employ or apply to employ these foreigners. Additionally, the Regulation sets out the authority, responsibilities, and rights and obligations in the field of international labor force.    

The changes made in this context are as follows:

According to Article 48 of the Regulation on the Implementation of the International Labor Law;

  • The evaluation period for the six-month work permit exemption for foreigners who could provide significant services and contributions in economic, socio-cultural, technological, and educational fields, as identified by relevant public institutions and organizations, has been extended to three years.
  • Foreign professional athletes, coaches, sports physicians, sports physiotherapists, sports mechanicians, sports masseurs, or similar sports staff coming to Turkey, with the approval of the Ministry of Youth and Sports or the Turkish Football Federation, will no longer be required to enter Turkey with a sports visa during the term of their contract with sports federations and sports clubs. This allows entry into the country with different types of visas.
  • Foreign press members entering under the permanent press card, with the opinion of the Presidency’s Directorate of Communications, will be included in the work permit exemption scope during their duties.

According to Article 49, Par. 3 of the Regulation on the Implementation of the International Labor Law;

  • Applications for work permit exemptions made from within the country must be submitted within thirty days from the foreigner’s entry date into Turkey, provided that the visa or visa exemption period is not exceeded. These applications must be made during the period the foreigner is legally present in Turkey.

According to Article 53 of the Regulation on the Implementation of the International Labor Law;

  • For foreigners granted a work permit exemption under subparagraphs (b) and (c) of the first paragraph of Article 48, no new application for the same exemption can be made unless six months have passed from the date the exemption was granted. For other work permit exemptions, no new application can be made unless twelve months have passed. For exemptions under subparagraph (ı) of Article 48, the calendar year will be used as a basis.
  • Those falling under subparagraph (ş) of the first paragraph of Article 48, with exceptions to Articles 49, 50, and 51, will be evaluated within the scope and duration specified in the notification for the work permit exemption. For these individuals, only a work permit exemption information form will be issued, as added to the relevant article.

You can access the full Regulation at the address: https://www.resmigazete.gov.tr/eskiler/2024/10/20241015-1.htm

THE REGULATION AMENDING THE REGULATION ON PRINCIPLES AND RULES TO BE APPLIED IN RETAIL TRADE HAS BEEN PUBLISHED IN THE OFFICIAL GAZETTE 21122024

Best Regards,
Balay, Eryiğit & Erten