Tax System In Turkey - Capital Gains

The taxation of capital gains, (included in "miscellaneous profits and earnings") varies according to the asset giving rise to the capital gain. The taxation of gains on the disposal of securities such as stocks and bonds is a particular case. Gains from the disposal of securities that have been acquired free of charge or are quoted on the stock exchange and have been held in possession for at least one year are exempted from taxation. (This rule is due to expire at the end of 1999.)

Gains from the disposal of immovable properties are also exempt if the property in question has been held for a minimum of four years. In other words, in sales transactions that are realized in the four years subsequent to the date of acquisition, no taxes are payable. Sales of other fixed assets acquired prior to 1 January 1993 are tax-exempt if the asset has been held for one year. In order to provide some protection against the effects of inflation on the taxation of capital gains on immovable