The Law on Amending the Law on the Protection of the Value of Turkish Currency and Certain Laws and the Decree Law No. 635 has been promulgated

The Law on Amending the Law on the Protection of the Value of Turkish Currency and Certain Laws and the Decree Law No. 635 (“Amendment Law”), published in the Official Gazette dated July 24, 2025, and numbered 32965, introduces amendments to the authorization processes in certain areas of practice, primarily concerning foreign exchange and precious metals. The significant amendments are as follows:

1. Foreign Exchange and Precious Metal Transactions

• Transactions involving the purchase, sale, export, and import of foreign currency, precious metals and stones will now be regulated by the Presidential decrees.
• Severe administrative fines and permanent activity bans have been introduced for unauthorized operations in these areas.
• In the event of a repeated violation within five years, penalties will be applied as double the amount.
• The aforementioned regulations shall become effective on the date of publication of the Amendment Law.

2. Activities Now Requiring Prior Authorization from the Ministry of Treasury and Finance

The following activities now require prior authorization:

• Buying and selling foreign currency for commercial purposes,
• Trading in the Borsa Istanbul Precious Metals Market,
• Refining precious metals,
• Trading diamonds within the scope of the Kimberley Process.

The required authorizations and related fees are determined based on the attached tariffs. In the case of unauthorized activities, license revocation and penal sanctions will be imposed. The aforementioned regulations shall become effective on the date of publication of the Amendment Law.

3. Amendments to the Tax Procedure Law No. 213 and the Value Added Tax (“VAT”) Law No. 3065

• Inspection reports can now be issued electronically; the requirement for physical signatures has been abolished.
• Certain public procurements and vehicle deliveries related to the defense industry have been exempted from taxation.
• Lease of the real estate managed by the General Directorate of Foundations is now exempt from VAT.
• Technical amendments have been made regarding items included in the VAT base.
• The aforementioned regulations shall become effective on the date of publication of the Amendment Law.

4. Amendments Regarding Organized Industrial Zones, Industrial Zones, and R&D

• The scope of some tax exemptions in the organized industrial zones has been clarified.
• The wage ceiling for benefiting from R&D incentives has been limited to 40 times of the gross minimum wage.
• Similar restrictions have been introduced for technology development zones and public research infrastructures. This regulation shall enter into force at the beginning of the month following the publication of the Amendment Law (1 August 2025).

5. Corporate Tax Reduction under Investment Incentives

• The corporate tax reduction may be applied for a maximum of 10 fiscal years and at a rate of up to 60%.
• The investment incentive certificate required for applying these reductions will be issued by the Ministry of Industry and Technology.
• The President has been granted authority to determine investment contribution rates and set regional and sectoral priorities.
• These regulations shall enter into force as of the publication date of the Amendment Law, to be applied to investment incentive certificates obtained from such date, excluding those for which application was made before June 16, 2025, and which have not been rejected.

6. Updates in Labor Law and Social Security

• Employer notifications can now be made via registered electronic mail (REM). The cost of the REM will be borne by the employer.
• Transactions related to insured individuals working abroad can now be conducted through consulates/attachés approved by the Ministry.
• The aforementioned regulations shall become effective on the date of publication of the Amendment Law.

7. Amendments to the LPG and Energy Market Laws

• Restrictions have been imposed on LPG distributors selling to one another.
• License holders with available storage capacity are now obliged to meet incoming requests.

Administrative fines and license cancellation provisions have been introduced for companies that do not comply with these requirements. These regulations will enter into force on 1 January 2026.