On 15 March 2017, the Council of Ministers Decision No. 2017/9973 (“Decision“), which sets out (i) new Resource Utilization Support Fund (“RUSF“) rates for TRY denominated loans utilized from abroad; (ii) new stamp tax rates for certain agreements relating to the construction sector; and (iii) the new title deed fees rate for certain real estate transactions, was published in the Official Gazette No. 30008 and entered into force.
1) RUSF rates
Previously, RUSF was applicable at 3% over the interest amount for TRY dominated loans obtained by Turkish individuals or legal entities (except for banks and financing companies) from abroad, regardless of the maturity of the loan.
The Decision now provides that RUSF will apply to TRY dominated loans, excluding fiduciaries, obtained by Turkish residents (except for banks and financing companies) from abroad at the following rates:
- 1% for loans with an average maturity up to one year
- 0% for loans with an average maturity of one year and more.
The RUSF rate for loans obtained by banks and financing companies from abroad remains 0%. In this respect, it can be seen that the use of TRY dominated loans is encouraged by the Turkish tax authorities.
2) Stamp tax rates
In an effort to stimulate the construction sector, the stamp tax rate applicable to agreements as specified below was reduced from 0.948% to 0% through the Decision.
- Construction agreements in return for flat (kat karşılığı inşaat sözleşmeleri) and revenue sharing construction agreements (hasılat paylaşımı inşaat sözleşmeleri) made in statutory form
- Construction agreements between building contractors and subcontractors drawn up within the scope of construction agreements in return for flat and revenue sharing construction agreements made in statutory form
- Consultancy agreements with regard to constructions in return for flat and revenue sharing construction affairs
- Building supervision services agreements
3) Title deed fees
The title deed fees rate applicable to transfers of residential or business real estate properties (including those with construction servitude) is reduced from 2% to 1.5% until 30 September 2017.
