Exceptions Introduced to Mandatory Turkish Lira Payments in Moveable Sales Contracts

Ankara The Amendment Regarding the Regulation of Decree No. 32 on the Protection of the Value of Turkish Currency, prepared by the Ministry of Treasury and Finance, has been published in the Official Gazette.

According to the amendment, certain exceptions have been introduced to the obligation of making and accepting payments in Turkish lira for moveable sales contracts, excluding vehicle sales contracts, concluded among resident individuals in Turkey.

Information obtained from the Ministry indicates that the amendment was made after evaluating intense demands from various sectors and addressing challenges in the current implementation. The exceptions introduced were carefully incorporated into the legislation, taking into account the purpose of the regulation without hindering its implementation.

Accordingly, the practice of fulfilling and accepting payment obligations in Turkish lira will continue for obligations other than those listed in the regulation.

The situations where payments can still be made in foreign currency are as follows:

  1. Payments under moveable sales contracts executed before April 19, 2022, involving currency-denominated securities that entered into circulation before the effective date of this amendment.
  2. Payment obligations under invoices issued before the mentioned date.
  3. Payment obligations related to precious metal and gemstone transactions conducted in foreign currency on the Borsa Istanbul Precious Metals and Precious Stones Market, and the settlement of these transactions.
  4. Payment obligations under moveable sales contracts for exports conducted through intermediary export companies or sectoral foreign trade companies based on intercompany export contracts under the relevant regulations dated December 8, 2004, and for exports conducted through companies holding the status of e-Export Consortium under the Presidential Decisions dated August 17, 2022.
  5. Payment obligations under moveable sales contracts for goods subject to customs declaration, including the sale and delivery of transit and customs warehouse-regime goods under the Customs Law dated October 27, 1999, and the application of temporary storage and free zone provisions.
  6. Payment obligations for the delivery of goods under moveable sales contracts related to exports carried out by companies operating in free zones and goods covered by moveable sales contracts in the scope of foreign trade transactions.

Some provisions of the amendment will be effective as of April 21, 2022, while others are already in effect as of today.

source: prepared by Melisa Beğiç

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