Numara : 10
Tarih : 21.9.2020


NO: 2020/10

Subject: The Dividend Distribution Restrictions Extended Until The End of The Year.
The Dividend Distribution Restrictions period has been extended by 3 months until the end of 2020 through the Presential Decree No: 2948, which promulgated Offical Gazette, dated 18 September 2020.
As may be remembered, dividend distribution restrictions were regulated in the Law No. 7244 dated 17 April 2020 and would be applied until 30.09.2020.
According to this Decree, unless the exceptions apply (exceptions are stated in the Communiqué dated 17 May 2020), dividend distribution restrictions will be applied until 31 December 2020 and thus;
a) Corporations will be allowed to distribute only %25 of their 2019 profits,
b) Previous year gains and legal reserves cannot be subject to distribution,
c) The General Assembly will be unable to grant authority to the Board of Directors for Advance Dividend Distribution.
If the General Assembly has decided to distribute dividends regarding FY 2019, but the shareholders have not yet been paid or have obtained partial payments, payments related to the portion exceeding 25% (twenty-five percent) of the annual net profit of the year 2019 shall be postponed until 31 December 2020.

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 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.

© 2020 Deloitte Global Services Limited