Tax Alert 3/2016  
Q3/2016 FATCA and Memorandum of Understanding annexed to it is approved by the Council of Ministers

The Agreement between the Government of the Republic of Turkey and the Government of the United States of America to Improve International Tax Compliance Through Enhanced Exchange of Information (“FATCA”) which has been signed between the parties July 29, 2015 and the Memorandum of Understanding (“MoU”) annexed to it is approved through the Decree of the Council of Ministers (Decree No. 2016/9139 and dated September 19, 2016) (published in the Official Gazette No.29848 and dated October 05, 2016).


Q3/2016 The VAT which applies at the rate of 18% over the sale of Residences is decreased to 8%

Through the Decree of the Council of Ministers (Decree No. 2016/9153) (published in the Official Gazette No. 29825 and dated 8 September 2016) (the “Decree”)a provisional article is added to the Decree of the Council of Ministers (Decree No.2007/13033) which determines the VAT rates which are applicable over the sale of residences. Accordingly, the VAT which applies at the rate of 18% over the sale of residences will be calculated at 8 % over the deliveries until March 31, 2017 (including this date).


Q3/2016 New Incentives for Eligible Investments on a Project Basis

The Law on Supporting Investments on Project Basis and Amending Certain Laws and Decree Laws (Law No. 6745) (the ‘‘Law’’) which aims to develop the investment climate of Turkey through a project-based investment incentives package, entered into force upon its publication in the Official Gazette No.29824 and dated September 7, 2016.

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Q3/2016 Amendments made by the Law No. 6745 on Certain Investment Incentives

The Communique regarding the application of the Decree on Public Incentives for Investments (No. 2012/1) was changed by the Communique No. 2016/2 (published in the official gazette dated June 25, 2016 and numbered 29753).

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  Tax Team  

The award winning Pekin & Pekin Tax practice team leaves regular compliance support to accounting firms and instead focuses on more complex cases, giving clients direct practical and innovative advice.

To discuss how these developments affect your business interests please contact either:

Fethi Pekin
Managing Partner
Firat Yalçin
Partner, Tax


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