TCMA Annual Report 2021 29 Taxation of Revenues Derived on Leveraged Trading Transactions The Association presented its opinions to the Republic of Türkiye Ministry of Treasury and Finance, Revenue Administration for clarification of the situation for the sector and for steering the implementations regarding taxation of revenues derived on leveraged trading transactions under Provisional Article 67 of the Income Tax Law. The explications provided by the Revenue Administration regarding taxation of revenues derived on leveraged trading transactions were announced to our members by our General Letter no. 841. In the Revenue Administration’s letter dated 22 January 2021 and no. 91378753-120.06.08[127]- E.10556 concerning taxation of revenues derived on leveraged trading transactions, leveraged trading transactions are deemed as FX-indexed transactions, and it is stated that Turkish lira currency gains/losses that will accrue until the position closure date of the foreign currency (FC) amounts in the nature of principal amount that are traded should also be added to the withholding basis. The Association presented to the Revenue Administration its opinions that withholding should be applied according to the tax basis which will be calculated by taking into account investors’ gains/losses in foreign currency terms and by not taking into account currency gains/ losses in leveraged trading transactions. Tax Issues of Collective Investment Schemes The issues stemming from the tax laws for real estate investment trusts (REIT), real estate mutual funds (REMF), venture capital investment trusts (VCIT), and venture capital mutual funds (VCMF) were conveyed in meetings participated by representatives from the Republic of Türkiye Ministry of Treasury and Finance. At the meetings where the Association was represented by the Chairperson and Vice Chairperson, opinions and suggestions regarding the following points were voiced: • VAT mismatch in real estate purchases and sales for REMFs and REITs, • Title deed fees issue for REMFs and REITs, • BITT and VAT issue in financing provided to startups by VCITs and VCMFs, • Stamp duty in the venture capital investments for VCITs and VCMFs, • Taxation through withholding of the revenues derived on REMF and VCMF shares under the Income Tax Law Provisional Article 67, and the withholding rates to be applied. TCMA Suggestion for FX-Protected Mutual Funds With the goals of encouraging savings and long-term investing, and making the FX-protected application available to individual savers investing in mutual funds, the Association shared its opinions and suggestions with the Republic of Türkiye Ministry of Treasury and Finance that FX-protected application should be provided in the following, taking the CBRT Policy Rate as the minimum rate of return: • Turkish lira term deposits opened by mutual funds invested in by investors, • Debt instruments, mutual funds and money market funds which are held by real person investors for at least three months, and of which are invested by 80% minimum in TL debt instruments and repo/reverse repo transactions.
RkJQdWJsaXNoZXIy MzMzNjEw