Emerging Markets Rates and Currencies Handbook

Tax Summary – Turkiye Turkiye commission, late charges, foreign exchange losses and similar costs (other than amounts included in cost of investment) related with the exceeding part would be treated as non-deductible for the Turkish company. Deductibility of (FX) Losses • • FX losses are generally deductible • • However, FX losses corresponding to thin capital are non-deductible • • FER applicable • • FX losses are generally deductible • • If intercompany, explanations in the “inter- co debt” column apply • • FER applicable • Realized FX losses are deductible • Non-deductible Other Taxes/Duties • • Resource Utilisation Support Fund (RUSF) regressive rates apply to borrowings from abroad, depending on CCY andmaturity: • Maturity: <1 yr, FCY Loans: 3%, LCY Loans: 1% • Maturity: 1 (incl.) -2 yr, FCY Loans: 1%, LCY Loans: 0% • Maturity: 2 (incl.) -3 yr, FCY Loans: 0.5%, LCY Loans: 0% • Maturity: >=3 yr, FCY Loans: 0%, LCY Loans: 0% • • RUSF bases differ based on loan type and currency. RUSF calculated over:1) FCY loan- Over the principal amount 2) LCY • • Loans received by banks and financing companies are exempt from RUSF. • • RUSF applicable for loans received banks abroad. • • Since loan provider is Bank no stamp tax applicable. • N/A • N/A • 0% WHT on capital gains derived from listed equities on the Istanbul SE bought after 1 Jan 2006 Country Deductibility and Considerations Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equities