Tarih 14 Eylül,2018
Paylaşan: Mustafa Güneş
Transaction values and amounts of agreements of sale, purchase, lease, financial leasing, service and to produce work shall be based on Turkish Lira.
In the Official Gazette published on the date of 13 September 2018, it was legislated by introducing paragraph “g” to Article 4 of the Decision numbered 32 regarding Protection of Value of Turkish Currency that payment obligations arising from certain types of agreements, especially lease contracts, shall not be based on or indexed to foreign currencies.
g) Transaction value and other payment obligations set forth in agreements with subjects of sales and purchases of movables and immovables including vehicles, leasing of movables and immovables including financial leasing, labour agreements, service agreements, and contracts to produce a work by and between the persons residing in Turkey; shall not be based on or indexed to foreign currencies.”
A provisional article has also been enacted to the Decision numbered 32 as in the following:
“Provisional Article 8 - Within 30 days as of effective date of paragraph (g) in Article 4 of this Decision, amounts determined in the agreements recited in the paragraph concerned, and agreements in force concluded before shall be adjusted by their parties to Turkish currency, with an exception of cases to be specified by the Ministry.”
It should be noted with emphasis that, in contrary to public perception, this amendment applies not only to lease agreements, but also to agreements concerning financial leasing, all kind of services and works.
What does the new provision bring about?
Prominent aspects of the said amendment may be explained as follows:
How are lawsuits and execution proceedings affected?
The decree does not provide broad information about this issue, however, notable aspects of the regulation introduced may be summarised as follows:
What is the consequence of incompliance with the Decree?
Sanctions shall be imposed upon those acting in breach of the Decree. Despite the Decree, persons determining transaction values and indexes on foreign currencies in agreements despite the Decree, will be levied with administrative fines from TRY 3,000.00 up to TRY 25,000.00 as per the first paragraph of article three of the Law numbered 1567.
This fine should be imposed per agreement. However, in some cases, it is observed that administrative fines are levied for each event. For instance, it may be enforced that fines for each month are issued in monthly rents. In the face of such cases, it is required to object to these fines by filing an annulment case.
What is the solution? May mediation be an alternative?
Last but not least, instead of resorting to courts, conflicts arising from adjusting transaction values can be settled by mediation, especially for the cases with parties who are willing to settle the disputes amicably. Settlements that are made through mediations are exempted from stamp tax, furthermore, the minutes recorded will be treated as an official document and stronger evidence.
Mustafa Gunes, Esq.
Etiketler: #turkishlira #turkishmoney