PUBLICATIONS

DEVELOPMENTS IN TRANSFER PRICING

The Law No. 6728 Amending Some Laws for the purpose of Improvement of the Investment Environment entered into force with the Official Gazette dated 09.08.2016 and numbered 29796 (the “Law No. 6728”) and the following matters in Article 13 of the Corporate Tax Law No. 5520 has been amended in order to overcome the problems that may be experienced in practice and to comply with the international legislation. 

THE MECHANISM FOR THE CAPITAL ADVANCE PAYMENTS HAS BEEN AMENDED

With the Turkish Commercial Code dated 13 January 2011 and numbered 6102 which was published in the Official Gazette dated 14 February 2011 and numbered 27846 and which has entered into force as of 01.07.2012, the mechanism on the share capital increase has been amended together with a legislation change in the capital movements circular of the Turkish Central Bank.

The amendment on the capital increase mechanism had an impact on the “capital advance” procedure that is usually implemented during the incorporation of companies or equity injection. Accordingly, the Central Bank of the Republic of Turkey has amended its Circular on Capital Movements (the “Circular”) by issuing a circular numbered 2013/YB-7 and removed the concept of “capital advance” from the Circular 2002/YB-1.