Decree No. BLKB2016/803M dated 20 January 2017 has been published in Official Gazette No. 5003 on 23 February 2017 regarding implication of the exemption from the participation. The Decree updated and replaced the Decree No. DGB2010/2154M of 12 July 2010. The Decree provides for a large number of editorial amendments as well as various new approvals and clarifications on the exemption arrangements.
According to the Decree, the most important changes are given below:
In case of non-profit participating shares, 5% of minimum threshold implies on the calculation; the treatment of currency gains and losses in article 13 (7) of the CITL; effect participation relief on liquidation loss facility; tax debt requirement if the participation is a tax exempt entity; legal affiliations and the assumed investment price of the shares in article 13k para. 2 CITL; Liquidation loss rule for long-term liquidation processes and clarified procedures.
The Decree has effect from 20 January 2017.
