TRANSFER OF SHARES IN JOINT STOCK COMPANIES

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DOING BUSINESS IN TURKEY Value Added Tax Currently, the VAT is applied at rates ranging from 1% to 18% in Turkey. For the transfer of JSC shares, if it is triggered, the VAT rate is 18%. a) If the JSC has issued share certificates or interim certificates, the transaction will not be subject to VAT. b) If the JSC has not issued share certificates or interim certificates, provided that the transferor legal person has been holding the shares for at least two years, the transaction will, again, not be subject to VAT. Currently, the VAT is applied at rates ranging from 1% to 18% in Turkey. 8 For the transfer of JSC shares, if it is triggered, the VAT rate is 18%. Stamp Duty Under Turkish tax regulations, execution of agreements that include prices triggers stamp duty. In connection with the transfer of shares; i. If the JSC has issued share certificates or interim certificates and the transfer of the shares is made by endorsing and delivering these certificates, the transaction will not be subject to stamp duty. ii. If the JSC has not issued share certificates or interim certificates and the transfer of the shares is made by executing a share transfer agreement, the transaction will be subject to stamp duty. iii. If the JSC has not issued share certificates or interim certificates, provided that the transferor legal person has been holding the shares for at least two years, even if the transfer of the shares is made by executing a share transfer agreement, the transaction will not be subject to stamp duty. 6 The stamp duty rate is currently 0.948% of the price mentioned in the agreement. In principle, no tax liabilities will be triggered when the shares of two different companies are exchanged between two parties. 8 For more information on the VAT regulations and practice in Turkey, please go to Tax at the Doing Business in Turkey section of our website. Transfer of Shares in Joint Stock Companies gurulkan & cakir
gurulkan & cakir Haluk GURULKAN, LL.M Managing Partner haluk.gurulkan@gurulkan.com + 90 532 456 82 52 Yasin ÇAKIR Partner yasin.cakir@gurulkan.com + 90 532 407 16 45 GURULKAN ÇAKIR AVUKATLIK ORTAKLIĞI Büyükdere Cad. 100-102 Maya Akar Center C Blok 4/24 Esentepe 34394 Istanbul - TURKEY T +90 212 318 90 30 F +90 212 211 98 24 M info@gurulkan.com W www.gurulkan.com Gurulkan Çakır Avukatlık Ortaklığı (“Gurulkan & Çakır”) is an attorney partnership registered at Istanbul Bar Association with a license number 105 and at the Union of Turkish Bar Associations with a license number 206. This publication provides general information only and should not be relied upon in making any decision. It is not intended to provide legal or other advice. Gurulkan & Çakır and its partners will not be liable for any loss or damage arising from reliance being placed on any of the information contained in this publication. Before acting on any information, readers should consider the appropriateness of the information provided herein, having regard to their legal and financial status, objectives and needs. In particular, readers should seek independent professional advice prior to making any decision. This publication may not be reproduced, in part or whole, by any process without prior written consent of Gurulkan & Çakır. © 2016 Gurulkan Çakır Avukatlık Ortaklığı | All rights reserved
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TRANSFER OF SHARES IN JOINT STOCK COMPANIES

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