Stay updated with the latest legal updates , insights and analysis in Turkey prepared by Moral & Partners Compliance Team.
What Does the Regulation Bring?
An interesting progress has been the introduction of a definition for “crypto assets”. The definition provides that crypto currencies are “intangible assets created virtually using either distributed ledger technology or a similar technology and distributed across digital networks which shall not in any manner be qualified as fiat money, cash, digital cash, instrument, security or other capital market instruments”.
In this regard,
the law-maker has also blocked the way to qualify crypto currencies as securities or capital market instruments or payment instruments.
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What do the Regulations Regulate?
The Regulation regulates matters such as procedures and principles related to remote work, which have become an important -and even inevitable for certain sectors- element of business life during the pandemic, jobs that cannot be performed remotely, and the application of business rules related to data protection and sharing.
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Certain legal arrangements are introduced by the General Communiqué on the Implementation of Valuable Housing Tax (“
Communiqué”) on tax liability, tax basis and tax rate, tax statement, time and place of payment regarding the Valuable Housing Tax ("
VHT") introduced by the Law on Digital Service Tax and Amending Certain Laws and Statutory Degree numbered 375, and the building tax value ("
Threshold") as set out in Law on Immovable Property Tax numbered 1319.
Concept of Residential Property
VHT applies to residential properties (residential buildings and every independent section in buildings consisting of more than one independent section) located within the borders of Turkey and whose building tax value, which will be obtained from the municipality where the property is located, exceeds
5,227,000 TRY as of 2021.
It is stated that, for the evaluation of whether the property has a residential character or not, the actual use of the property will be examined in addition to the class of the property as registered in the records.
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The Decisions of the Information and Communication Technologies Authority on the Prohibition of Placing Advertisements on Social Network Providers that Do Not Fulfill the Obligation to Appoint and to Announce Representatives ("
ICTA Decisions") have been published in the Official Gazette dated 19 January 2021 and numbered 31369 and entered into force on the date of publication.
Under the ICTA Decisions, the Information and Communication Technologies Authority (“ICTA”) has placed a prohibition on placing advertisements on social network providers such as Twitter, Pinterest and Periscope, which did not appoint representatives in Turkey. The prohibition to advertise imposed upon social media networks such as Twitter, Periscope and Pinterest, which have a large number of users in Turkey, on the grounds that they did not assign representatives in Turkey within the specified time period, is an important step in the practical implementation of social media restrictions in Turkey.
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Scope of the Free Trade Agreement
The United Kingdom has been Turkey’s second-biggest export market for the year 2019, at the volume of 11,2 billion dollars, and became one of the countries with the biggest trade surplus Turkey has, by becoming one of the most prominent markets for export in many sectors, especially for automotive, televisions, household appliances and textiles and electrical equipment.
With the FTA that is signed with the purpose of preserving and strengthening the current trade relationship between the countries, the tariff rate for industrial products has been brought to zero and the concessions granted to the EU regarding agricultural products and processed agricultural products have been scaled and reflected in these new commercial relations. Additionally, the provisions of the FTA have been drawn up in a manner that would include all agricultural and industrial products.
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The “Human Rights Action Plan” (“
Action Plan”) was shared with the public at the Human Rights Action Plan Presentation Meeting on 2 March 2021 by the Presidency of the Republic.
Within the scope of the Action Plan, important regulations within the Turkish Legal System are envisaged, for the purposes of improving judicial processes, compliance with international law and protection and development of human rights.
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Per article 367 of the
Turkish Commercial Code No. 6102 (“TCC”), boards of directors of joint stock companies may transfer some authority related to the management of the company to some members of the board of directors or to third parties who are not members of the board of directors with an internal directive that it will prepare and put into effect.
The transfer of the authority of management allows the creation of an effective management organization in light of
corporate governance principles in joint stock companies, it also constitutes a tool that enables the limitation of the liability of the board of directors.
In this context, questions arise as to the limits of the transfer of liability of the members of the board of directors to certain members of the board or third parties, following such
transfer of authority, and the principles of general liability concerning the members of the board of directors transferring such authority shall be explained in our article.
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