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Turkey Cuts Tax On Forex Transactions

Monday, October 5, 2020

Turkey has reversed an increase to the country's banking and insurance transactions tax (BSMV) on foreign currency and gold purchases.

Under a Presidential Decision published in the Official Gazette on September 30, 2020, BSMV on foreign currency and gold purchases was lowered from one percent to 0.2 percent.

The tax was previously increased from 0.2 percent to one percent from May 24, 2020.

Certain transactions are exempt from the tax, including forex transactions between banks and authorized institutions, foreign exchange sales to the Treasury and the Ministry of Finance, and forex sales by banks to borrowers with foreign currency loans.