New regulation to watch

Turkey ratifies Lapis Lazuli Route Agreement

Turkey has ratified the Transit and Transport Cooperation Agreement (Lapis Lazuli Route Agreement) signed on November 15, 2017 in Ashgabat, Turkmenistan. The corresponding law came into force with its publication in the official gazette last week. Caspian-littoral states have been recently initiating a number of large international projects, including the Lapis Lazuli transport corridor running through Afghanistan Turk men is tan-AzerbaijanGeorgia Turkey. According to the Lapis Lazuli project, railways and highways should connect Turgundi in Afghanistan’s Herat province with Ashgabat, then with the Caspian Turkmenbashi port. The corridor will extend to Baku, then through Tbilisi to Ankara with links to Poti and Batumi cities, then from Ankara to Istanbul. The project budget, which aims to facilitate transit logistics and simplify customs procedures, is estimated at $2 billion.

Cultural cooperation ahead with Hungary

The decision on the approval of the Cultural Cooperation Agreement between Turkey and Hungary, which was signed in Budapest on November 7, was published in the Official Gazette. According to the agreement, the two countries will cooperate in the fields of cultural development, especially art, cultural traditions, libraries, publishing, archeology and museums, and will organize joint projects on the conservation, restoration and scientific research of intangible cultural heritage.

Localization supports

An amendment has been made to the Regulation of the Ministry of Energy and Natural Resources on “Supporting Local Parts Used in Plants Generating Electricity from Renewable Sources.”

Stoppage in financing bills increase

The withholding (stoppage) rate for natural persons in financing bills has been increased from 10 percent to 15 percent. The President’s Decision regarding the issue was published in the Official Gazette and entered into force. The rate of withholding applied to interest earned from short-term deposits and financing bonds of individual investors was equalized. For institutional investors, the withholding rate will continue to be applied as zero percent in financing bonds.

Additional tax on foreign exchange

Amendments to the determination of bank and insurance transaction tax rates have been published in the Official Gazette and have entered into force.

The foreign exchange transaction tax on foreign exchange sales by banks, exchange offices and other financial institutions was amended. Tax levied on non-physical gold sales for gold deposits or investment accounts opened in banks with foreign currency was also amended. Accordingly, the Bank Insurance and Transaction

Tax (BSMV) ratio in foreign exchange transactions has been increased from

0.2 percent to one percent. The BSMV will be zero percent for foreign exchange sales to exporters that are members of the Exporters’ Associations.

Appointments for insurance officials

Turker Gursoy was appointed Chairman of the Insurance and Private Pension Regulation and Supervision Agency, which was established to carry out duties regarding the regulation and supervision of the insurance and private pension sectors. The president and members of the institution associated with the Ministry of Treasury and Finance were determined by the President’s decision published in the •fficial Gazette. Accordingly, Ali Ersoy will act as vice president and Ender Senol, Fatih Kucukcan, Rifat Vefa Murteza as members.