NEWSLETTER-2020-metin

324 NEWSLETTER 2020 • FX sales made to the borrower of an FX loan by the lender or the intermediary bank that mediated the utilization of the FX loan, for the purposes of repaying the FX loan • FX sales made to enterprises holding industrial registration certificates • FX sales made to exporters that are members of exporters’ associations Within this scope, at the current stage, the BITT rate to be applied for non-physical gold sales transactions to be conducted after 24th May 2020 will be 1%. Our Evaluations No specific regulation stating that gold or other precious metals should be accepted to be in the nature of foreign exchange transac- tions is specified under Decree No. 32 on The Protection of The Value of Turkish Currency and the relevant Communiqué No. 2008-32/35. Additionally, as per Article 73 of the Constitution, the scope of the tax should be regulated by the law in line with the legality of the tax principle. Therefore, evaluation of non-physical gold sale transactions as foreign exchange is disputable in terms of the above-mentioned legality principle. Conclusion No specific regulation stating that non-physical gold sales should be accepted to be in the nature of foreign exchange transaction. This application came into “force” as a result of the Revenue Administra- tion’s letter sent to Turkish Bank Association. Therefore, we believe that this approach should be discussed in terms of the legality and predictability principles regulated under Article 73 of the Constitution.