TAX NEWS NO: 2012/7
December 24, 2012
Subject:
Leasing, Factoring and Financing Companies Law has been published in the Official Gazette.
Leasing, Factoring and Financing Companies Law (No. 6361) has been published in the Official Gazette dated 13 December 2012.
Beforehand, the foundation and activities of the financial leasing companies were regulated by the Financial Leasing Law numbered 3226 while the foundation and activities of factoring and financial companies were regulated by the Decree Law for Money Lending Transactions numbered 90.
With the entry into force of this law, leasing, factoring and financing companies and operating principles of the organization, financial leasing, factoring and financing agreements with their principles and procedures are regulated under an umbrella of a single law..
Certain important regulations introduced can be summarized as follows:
1. Minimum paid-in capital requirement has been raised to 20 million TL
Minimum paid-in capital requirement for financial leasing, factoring and financing companies to be established shall be at least TL 20 million. Companies that are already established, should increase their minimum paid-in capital as of December 13, 2015 (within 3 years) at the latest.
2. Leasing companies are now allowed to engage in operational leasing
Leasing companies have been permitted to carry out operational leases. On the other hand, the provisions regarding financial leasing transactions of the Law shall not be applicable to operational leasing transactions carried out by financial leasing companies.
3. Leasing companies are now allowed to lend cash loans
Financial leasing companies, within the framework of their agreements with customers and as part of the transactions carried out under the concerning agreements, may provide cash loans to customers at an amount not exceeding one per cent of the total paid-in capital.
4. Sale and leaseback transactions are now allowed
The new law has enabled financial leasing of the assets not only from third parties but also from the lessee. By this way, sell - lease back system which is a widely preferred financing method in many countries has been adopted.
For instance, a cash-strapped company can sell its real estate to a financial company and lease it back afterwards.
5. Stamp duty and fee exemption
The new law also has clarified the issue of stamp duty and fee exemption. According to the regulation;
financial leasing agreements as well as the papers related to the transfer and amendment of these agreements shall be exempt from stamp duty,
papers issued for their guarantee shall be exempt from stamp duty,
the transactions to be carried out in connection with these papers shall be exempt from fee.
6. Reproduced copies of computer software could be made subject of leasing
In order to address the practical needs arising from the application, in addition to movable and immovable property, reproduced copies of computer software can now be subject to leasing except for the intellectual and industrial rights such as patents
Yours sincerely,
Deloitte Turkey
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
These materials and the information contained herein are provided by Deloitte Turkey and are-intended to provide general information on a particular subject or subjects and are not on exhaustive treatment of such subject(s).
Accordingly, the information in these materials is not intended to constitute accounting, tax, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect your personal finances or business, you consult a qualified professional adviser.
These materials and the information contained therein are provided as is, and Deloitte Turkey makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte Turkey does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality.
Deloitte Turkey expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.
Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk off loss resulting from the use thereof. Deloitte Turkey will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statue, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein.
© 2012 Deloitte Global Services Limited