The Turkish Revenue Administration Has Stated that Purchase and Sale Transactions for Gold that Occur without Physical Delivery Will be Subject to Banking and Insurance Transactions Tax as a Foreign Exchange Transaction

The Turkish Revenue Administration Has Stated that Purchase and Sale Transactions for Gold that Occur without Physical Delivery Will be Subject to Banking and Insurance Transactions Tax as a Foreign Exchange Transaction

In response to a question submitted by the Turkish Tax Inspection Board concerning an ongoing investigation, the Turkish Revenue Administration (“RA”) stated in a letter addressed to the Presidency of the Banks Association of Turkey, dated 21 May 2020 and numbered 70903105-180[5601-269-2]-E.53703 (“Letter”), that purchase and sale transactions for gold made by banks that take place without physical delivery through either investment accounts or other types of accounts constitute foreign exchange transactions.

For full copy of the alert, please click here.