Exception

Real estate sale agreements for the real estate (including residences and roofed working places) within Turkey (including those in the free-trade-zones) among “Turkish Residents”
(Decree No: 32 Article 4 (g))
(Communique No: 32/51 Article 8 (1))

Real estate lease agreements for the real estate (including residences and roofed working places) within Turkey (including those in the free-trade-zones) among “Turkish Residents”
(Decree No: 32 Article 4 (g))
(Communique No: 32/51 Article 8 (2))

Employment contracts among “Turkish Residents”
(Decree No: 32 Article 4 (g))
(Communique No: 32/51 Article 8 (3))

• Employment contracts which will be performed abroad (Communique No: 32/51 Article 8 (3))
• Employment of person who are resident in Turkey but who are not Turkish citizens (i.e. employment contracts of expats) (Communique No: 32/51 Article 8 (11))
• “Foreign Party Contracts” (Communique No: 32/51 Article 8 (16))
• “Public Contracts” (Communique No: 32/51 Article 8 (12))

Service agreements including those that are related to consultancy, intermediary and transportation executed among Turkish Residents.
(Decree No: 32 Article 4 (g))
(Communique No: 32/51 Article 8 (4))

• Service agreements to which person who are not Turkish citizens are a party to (Communique No: 32/51 Article (8) (4) (a))
• Service agreements for services and activities with gains/revenues in foreign currency (döviz kazandırıcı) (Communique No: 32/51 Article (8) (4), (b))
• Service agreements executed within the scope of (i) exports, (ii) transit trades and (iii) sale and deliveries which are deemed exports, (Communique No: 32/51 Article (8) (4) (c))
• Service agreements executed for activities to be conducted abroad by “Turkish Residents” (Communique No: 32/51 Article (8) (4) (c))
• Service agreements related to electronic communication which (i) start in Turkey and end abroad and (ii) start abroad and end in Turkey (Communique No: 32/51 Article (8) (4) (ç)) 
• License and service agreements for hardware and software (Communique No: 32/51 Article (8) (8)) 
• “Foreign Party Contracts” (Communique No: 32/51 Article 8 (16))
• “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))
• “Defined Aviation Contracts” (Communique No: 32/51 Article 8 (17))

Construction contracts (eser sözleşmesi) executed among “Turkish Residents” 
(Decree No: 32 Article 4 (g))
(Communique No: 32/51 Article 8 (5))

• Construction contracts (eser sözleşmesi) for construction, repair and maintenance of vessels defined in Law dated 16/12/1999 and numbered 4490 on Amendment of Turkish International Ship Registry Law and Executive Order (Kanun Hükmünde Kararname) numbered 491. (Communique No: 32/51 Article 8 (5))
• “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))

Agreement for sale of movables executed among “Turkish Residents”.
(Decree No: 32 Article 4 (g))
(this restriction is limited with agreements for the sale of vehicles including construction vehicles (iş makinesi) among Turkish Residents)
(Communique No: 32/51 Article 8 (6))

•  “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))
• “Defined Aviation Contracts” (Communique No: 32/51 Article 8 (17))

Agreements for lease of movables executed among “Turkish Residents”
(Decree No: 32 Article 4 (g))
(this restriction is limited with agreements for lease of vehicles including construction vehicles (iş makinesi) among Turkish Residents))
(Communique No: 32/51 Article 8 (7))

• “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))
• “Defined Aviation Contracts” (Communique No: 32/51 Article 8 (17))

*Vehicle lease agreements (including those for the construction vehicles) in or indexed to foreign currency (which fall within the scope of the restriction) executed prior to 13 September 2018, are exempt from the re-determination requirement (Communique No: 32/51 Article 8 (17). 

Sale agreements for software

(Communique No: 32/51 Article 8 (8))

• Sale agreements for software produced abroad within the scope of information technology (Communique No: 32/51 Article 8 (8))
• “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))
• “Defined Aviation Contracts” (Communique No: 32/51 Article 8 (17))

License agreements
(Communique No: 32/51 Article 8 (8))

• License agreements for hardware and software (Communique No: 32/51 Article 8 (8))
• “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))
• “Defined Aviation Contracts” (Communique No: 32/51  Article 8 (17))

Leasing agreements including financial leasing
(Decree No: 32 Article 4 (g))
(Communique No: 32/51 Article 8 (8) and (9))

• Financial leasing agreements for the vessels defined in Law dated 16/12/1999 and numbered 4490 on Amendment of Turkish International Ship Registry Law and Executive Order (Kanun Hükmünde Kararname) numbered 491. (Communique No: 32/51 Article 8 (8))
• Prices/rates relating to the contract in financial leasing agreements to be entered into within the scope of Decree No 32 on Protection of the Value of Turkish Currency articles 17 and 17/A (Communique No: 32/51 Article 8 (9))
• “Public Contracts” (Communique No: 32/51 Article 8 (12))
• “Defined Contractor Contracts” (Communique No: 32/51 Article 8 (13))
• “Defined Aviation Contracts” (Communique No: 32/51 Article 8 (17))

N/A

• “4749 Contracts” (Communique No: 32/51 Article 8 (14))

N/A

• “Defined Capital Markets Transactions” (Communique No: 32/51 Article 8 (15))

Rates/prices in negotiable instruments issued within the scope of agreements for which the restrictions apply cannot be not be determined in foreign currency or as indexed to foreign currency. 
(Communique No: 32/51 Article 8 (18))

N/A

Meaning / Explanation

“Defined Aviation Contracts”

agreements entered into by:

• commercial airline businesses resident in Turkey that carry out passenger, freight and main transportation;
• corporations which provide technic maintenance services for air transportation vehicles (hava taşıma aracı), engines and their parts and accessories (aksam ve parça);
• (a) institutions with public or private legal entity status which are authorised or has a working license for carrying out ground servicing in airports within the scope of civil aviation legislation; (b) businesses and corporations established by such institutions; or (c) partnerships in which such institutions own minimum of 50% of the share capital

– other than real estate sale, real estate leasing and employment agreements-.
(Communique No: 32/51 Article 8 (17))

“Defined Contractor Contracts”

agreements between  contractors and  third parties which are within the scope of performance of:

• foreign currency or foreign currency indexed tenders and agreements that public institutions and organizations (kamu kurum ve kuruluşları) are a party to
• international agreements

- other than real estate sale agreements, real estate lease agreements and employment agreements- 
(Communique No: 32/51 Article 8 (13))

“Foreign Party Contracts”

employment and service agreements to which one of the following is a party to:

• branches, agencies, offices, liaison offices of non- Turkish residents, in Turkey,
• corporations in which non-Turkish residents own 50% or more of the share capital, or
• corporations within free zones – employment and service agreements that are within the scope of the activities within the free zone. 

“Indexed to foreign currency”

agreements

• which are, indexed to valuable metal and/or commodities price of which is determined over foreign currency in international markets and/or
• which are indexed to foreign currency directly or indirectly

are considered as agreements indexed to foreign currency within the scope of implementation of article 4 limb (g) of the Decree No 32 on Protection of Value of the Turkish Currency.  
(Communique No: 32/51 Article 8 (19))

“Public Contracts”

agreements to which one of the following are a party:

• public institutions and organizations (kamu kurum ve kuruluşları) or
• Turkish Armed Forces Foundation (Türk Silahlı Kuvvetlerini Güçlendirme Vakfı)

- other than real estate sale agreements, real estate lease agreements and employment agreements- 
(Communique No: 32/51 Article 8 (12))

“Turkish Residents”

real or legal person who has legal/official settlement (kanuni yerleşim yeri) in Turkey (Decree No 32 Clause 2 (b)) including:  

• Turkish citizens who are employees, works free-lance or are self-employed abroad (Decree No 32 Clause 2 (b)). 
• branches, agencies, offices, liaison offices of Turkish residents, which are abroad (Communique No: 32/51 Article 8 (20));
• funds which are abroad and operated or directed by Turkish residents (Communique No: 32/51 Article 8 (20)); 
• corporations which are abroad and in which Turkish residents own 50% or more of the shareholding (Communique No: 32/51 Article 8 (20));
• corporations which are abroad and owned directly or indirectly by Turkish residents (Communique No: 32/51 Article 8 (20))

“4749 Contracts”

agreements

• to which banks are a party and
• which relates to transactions realized by the Ministry of Treasury and Finance within the scope of Law on the Regulation of Public Financing and Debt Management dated 28/3/2002 and numbered 4749. 

(Communique No: 32/51 Article 8 (14))