Recent Developments
The Banking and Insurance Transaction Tax ("BITT")
imposed on foreign currency ("FX") transactions decreased
to 0.2% from 1%
The BITT rate on FX transactions was increased from 0.2% to 1%
with the Presidential Decree No. 2568 published in the Official
Gazette dated 24 May 2020 and No. 31136.
The rate was then decreased to 0.2% with the Presidential Decree
No. 3031 published in the Official Gazette No. 31260 dated 30
September 2020. The new rate is in force as of 30 September
2020.
The 0.2% BITT rate for FX transactions will be calculated over
the FX sales amounts. The BITT will remain 0% for the following
transactions:
- FX sales made between banks and
authorized foreign exchange dealers (among themselves or to each
other)
