Turkey Financial News

Posted by meb at September 14th, 2009

Following the end of extended tax reductions for motor vehicles on Sept. 30, the government is expecting to keep the lights on at the Turkish automotive industry with a different version of incentives.

Speaking to the Anatolia news agency, officials from the Finance Ministry said the government could introduce incentives for the replacement of old vehicles with new ones. Having initially introduced tax cuts on motor vehicles on March 16 for a period of three months, the government decided to extend the terms for another three months on June 15. The private consumption tax (ÖTV) on motor vehicles with engines of up to 1,600 cubic centimeters was set at 27 percent, while the tax on commercial vehicles was changed to 3 percent. Extended for a second time, the tax incentives are due to expire at the end of September.

Noting that they have studied examples of incentives for old vehicles in foreign markets, the Finance Ministry officials said the government could consider introducing such incentives in the coming months, expecting to keep the recovery going in the auto industry. Encouraged by recent tax cuts, the Turkish auto sector has enjoyed a remarkable increase in sales. (more…)

Posted by meb at April 14th, 2009

A reduction of the value-added tax (KDV) in the real estate sector, part of government’s efforts to fend off the ongoing global financial crisis, has led to an increase in the sale of residences in Turkey’s prominent tourism destinations.

After experiencing a 70 percent contraction in sales amid global financial turmoil, real estate agents in Alanya and Bodrum said sales had increased by 40 percent in just the last few weeks compared to the period prior to the KDV cut. Upon hearing of the tax break, parties interested in buying property here came from Norway, Denmark, Germany, the Netherlands and Ireland. (more…)

Posted by meb at November 17th, 2008

The government is taking steps to make it easier for the citizens of Gulf states and Turkic republics to buy real estate in Turkey by taking into consideration whether or not Turkish citizens are allowed to invest in real estate in those countries.

After making it possible for Turkish citizens abroad to bring money back into Turkey under the Varlık Barışı tax regulation, the government is now looking for ways to make it easier for citizens of the Gulf states and Turkic republics to buy real estate in Turkey.

The Varlık Barışı code made it easier for Turkish citizens abroad to invest in Turkish assets by lowering and under certain circumstances eliminating the heavy taxes levied on foreign holdings coming into the country. (more…)

Posted by meb at November 14th, 2008

The Turkish Parliament on Thursday adopted a bill that offers incentives and tax cuts in the hope of attracting the funds of Turkish citizens living in Turkey and abroad into the country’s financial system.

Under the bill Turkish expatriates will be encouraged to bring their money to Turkey under an “assurance” and by paying a 2 percent “nominal tax.” Turks residing inside the country will be able to put their cash savings in banks subject to a 5 percent tax rate.

Profits earned outside the country will be exempt from income and corporate tax if they are brought to Turkey by May 31, 2009. Turkish citizens will have to declare the current value in Turkish lira of their savings and property — money, gold, foreign currency, securities and capital market instruments and all fixed assets — to banks, brokerage houses or tax offices within three months after the law is published in the Official Gazette. The government will not carry out any inspections on the sources of savings for the term before Jan. 1, 2008, unless there is a pending specific complaint regarding the origin of funds. During debates on the bill at Parliament, Finance Minister Kemal Unakıtan told lawmakers that the government would take action on funds if there is evidence that money laundering has happened. “It is impossible to blame someone for something for which you have no evidence,” Unakıtan said in Parliament. “But of course, we do not want drug money or money earned from terrorism or illegal arms sales,” he said. (more…)

Posted by meb at November 12th, 2008

Turkey will make changes to a nuclear energy tender law nearly two months after it received just one bid in a tender to build the country’s first nuclear power plant, an Energy Ministry source told Reuters yesterday.

A consortium comprised of Russian Atomstroyexport and Inter Rao along with Turkey’s Park Teknik Group was the sole bidder in a tender to build and operate Turkey’s first nuclear power plant in Mersin on the Mediterranean coast. Turkey plans to build three nuclear power plants with a capacity of 4,000 megawatts, plus or minus 25 percent, as part of efforts to reduce a costly dependence on energy imports.

Turkey is still considering the bid submitted by the Russian-Turkish group, the Energy Ministry source said. (more…)

Posted by meb at November 12th, 2008

The Turkish government is set to take another step to stave off the adverse effects of the ongoing global financial crisis on the economy after having introduced incentives to encourage Turkish expats living abroad to bring their money into the country and households to contribute their personal savings to the economy.

The projected plan aims to attract Gulf capital to Turkey by creating interest-free instruments such as rent certificates, real-estate partnership bonds and participation certificates — known as sukuk in Islamic finance terminology. Anonymous sources from the government informed Today’s Zaman that the Treasury has already started working on these instruments and has sent a draft of a bill to the prime minister’s office. The same sources stated that the details will probably be publicized in a week’s time.

The idea of creating Shariah-compliant financial tools to attract capital owners with religious sensitivities against interest-yielding instruments has been on the current administration’s agenda since it first came to power in 2002. But to avoid fierce rejection by secular powerhouses, it had to shelve its intentions despite the fact that even centers of capitalism like the US and Britain have taken a great interest in interest-free finance. But global financial turbulence and the concurrent liquidity squeeze made the establishment of these interest-free tools urgently necessary. (more…)

Posted by meb at November 11th, 2008

Nearly 50,000 Turkish mobile phone users applied to change their GSM operator on the first day the number portability regulation came into effect, Hurriyet daily reported on Tuesday.

One thousand applications were completed within the first minutes of the implementation of the gentleman’s agreement between operators. However, no information was given regarding the distribution of those first 1,000 subscribers among the operators.

The number portability practice, which allows customers to keep their existing mobile phone number when switching operators, started in Turkey on Sunday.

The practice has been widely discussed in the industry as Turkey’s three leading GSM operators; Turkcell, Avea, and Vodafone, eye new customers who might be unhappy with their present operator.

NEW OFFERS FROM OPERATORS (more…)

Posted by meb at October 25th, 2008

Heat insulation regulations, which aim to make savings by reducing the amount of energy used for heating, have been revived and will be put into effect starting Nov. 1, said Kubilay Ulu, the head of the Heat Insulation Industrialists’ Association.

The heat insulation projects of new buildings and modifications in existing buildings must be carried out according to the standards of the TS 825 regulations, said Ulu, adding that this situation in turn would pave the way for more efficient energy use. Residents in buildings that are heated with room heaters will have to install insulation between both the walls and floors, according to the new standard, said Ulu. Residents will also have to use insulated windows from now on according to the new standard, he added. (more…)