Turkiye has raised the foreign exchange (FX) conversion support rate for companies converting foreign currency into Turkish lira (TRY) from 2% to 3%. This change, effective from 1 May to 31 July 2025. This update is outlined in Communiqué No. 2025/11, issued on 3 May 2025.
Two special regulations have been published regarding the corporate tax aspect of the relevant support. These include the 5-point discounted rate for export earnings in relation to the corporate tax application of the 3% conversion support and its status under the exception outlined in temporary Article 14 of the Law.
Eligible companies (excluding banks and financial institutions) can sell foreign currency to the Central Bank through a commercial bank and convert the rest into lira. They must also agree not to buy back foreign currency beyond the amount they sold for a set period.
The support is 3% of the Turkish lira value of the foreign currency converted. The Central Bank pays this support to the commercial bank, which then transfers it to the company.
If a company violates the no-purchase condition, it must repay the support, including any interest or exchange rate differences, and will be banned from Central Bank loans for one year.
