Business, Financial and the Other Measures from TURKEY against Covid-19 as of March 20th, 2020 20 March 2020
Business, Financial and the Other Measures from TURKEY against Covid-19 as of March 20th, 2020
Regarding the spread of the coronavirus, Turkey unveiled an economic package called "Economic Stability Shield Against Coronavirus" consisting number of measures. It was announced that 100 billion lira (15.4 billion dollars) has been committed to protect Turkey from the financial effects of the coronavirus outbreak and many measures have been taken in various areas to prevent its spread.
A summary of the measures announced by the public authorities of Turkey is as follows;
1. Tax Measures
- The payments of withholding tax, value added tax (VAT) and Social Security Institution (SGK) premiums due in April, May and June will be deferred for 6 months in the sectors of retail, iron-steel, automotive, logistics-transportation, cinema-theater, accommodation, food-beverage, textile-garments and events-organization.
- Accommodation tax will not be applied until November 2020.
- Payments of easement fees and revenue sharing relating to hotel rentals due in April, May and June will be deferred for 6 months.
- The value added tax (VAT) on domestic airline flights has been cut from 18 percent to 1 percent for a period of 3 months.
- The period of withholding tax return, including the payments of stoppage at source, will be postponed for 3 months.
2. Social Measures
- Minimum wage support will continue.
- It will be ensured that employers are encouraged to introduce flexible and remote working models.
- Short-time Work Payment system, which provides temporary income support, will be implemented and its administrative process will be eased and accelerated.
- The lowest pension amount will be increased to 1,500 lira (230 dollars).
- The festive bonus of pensioners will be paid in early April. Also, the salary promotion of pensioners will be directly deposited into their bank accounts so that they will no longer have to go bank branches.
- Additional 2 billion lira ($308 million) will be provided for financial aid to families in need, according to criteria set by Ministry of Labor and Social Security.
- To ensure continuity in employment, make-up time compensation will be increased from two months to four months.
- Alternative channels in line with the priorities determined for production and retail, in case of disruption in global sourcing chains, will be initiated.
- The government is also launching a periodic follow-up program consisting of social and home health services for the elderly, i.e., those who are 80 or older and live alone.
- 12 days of administrative leave is to be granted to pregnant women working as public officials, as well as for those on breastfeeding leave, disabled people and staff over 60 years of age.
3. Financial Measures
- The administration will increase the Credit Guarantee Fund limit from $3.8 billion to $7.7 billion, and credit will first be given to businesses and SMEs (Small and Medium Enterprise) with a collateral deficit and in need of liquidity.
- The credit payments for firms facing cash flow disruptions due to coronavirus will be deferred for 3 months. Additional support will be provided to these companies when needed.
- Stock financing assistance, to maintain capacity during temporary slowdown in exports, will be given to the exporters.
- Turkish public bank Halkbank will postpone, for 3 months, credits, interests and debt payments of craftsmen and artisans negatively affected during this period.
- The government will promote credit packages with favorable and advantageous conditions for Turkish nationals.
- The amount of loans that can be taken out against residences valued below $77,000 will be increased from 80 percent to 90 percent, and the minimum payment on such loans will be reduced to 10 percent.
- In the event that companies fail to meet their financial obligations in April, May and June, because they are affected by the measures introduced against the spread of the virus, it will be ensured that "force majeure" will be noted in their credit registry.
4. Other Measures
- The activities in public places, such as coffee shops, cafes, cinemas, theaters, concert halls, wedding halls, baths, sports halls, indoor children's playgrounds and more, are temporarily suspended.
- Turkey also temporarily suspended the activities in entertainment venues, such as bars, casinos, night clubs, museums and libraries, where many people come together.
- A total of 20 countries were added to the list of countries from which flights are banned.
- For citizens coming from abroad, a 14-day self-quarantine obligation has been imposed.
- Off-base days for soldiers are cancelled, and non-urgent trials and other legal processes are temporarily suspended.
- All arts and culture events are postponed until the end of April.
- All mosques and prayer rooms are closed.
- All national and international events, open and closed meetings, conferences and military exercises are also suspended through the end of April.
- Activities such as general assemblies and training activities, where people are obliged to come together, have been postponed.
- All competitions in four major sports: football, basketball, handball and volleyball have been postponed until further notice in response to the coronavirus pandemic.
- The government will increase the number of laboratories working on developing responses to the coronavirus to 36 nationwide.
Non-urgent operations have been stopped in order to minimize the density in health institutions and to relieve the burden on healthcare personnel.
Other News
-
8.12.2025
What is OFAC? Its Strategic Importance For Investors And Areas Of Application
As the world changes and with each passing day, one of the terms we encounter more frequently is "OFAC". In today's globalized world, investors seeking to make international investments come across OFAC or interact with it in one way or another. This is because the sanctions imposed by OFAC relate not only to U.S. citizens or U.S.-origin companies, but also to individuals who have direct or indirect economic or financial contact with the United States. So, what is this OFAC?
-
4.12.2025
Loans To Shareholders And Adat Invoice
In practice, it is quite common for companies to extend loans to their shareholders. In situations where the company becomes a creditor of its shareholders, adat interest must be calculated on the outstanding balance and an invoice must be issued. Accordingly, adat is a method used to calculate accrued interest based on the period during which company funds are utilized by shareholders or related parties, ensuring that any potential tax loss is compensated. These calculations are important for compliance with transfer pricing rules, accurate determination of the tax base, and the fulfillment of legal obligations such as Value Added Tax (“VAT”).
-
28.11.2025
Notification Process To The Central Securities Depository & Trade Repository Of Türkiye For Bearer Share Certificates And Legal Consequences
1. Issuance and Notification of Bearer Share Certificates Pursuant to Article 484 of the Turkish Commercial Code ("TCC"), joint stock companies have two types of share certificates: registered shares and bearer shares. While the transfer of registered shares is completed through delivery, certain conditions have been introduced under the Communiqué on the Notification and Registration of Bearer Share Certificates with the Central Securities Depository ("Communiqué") for the transfer of bearer shares. Within the scope of the Communiqué, the registration of bearer shares with the Central Securities Depository & Trade Reposıtory of Türkiye ("MKK"), the adoption of a board resolution, and the registration and announcement of this resolution before the relevant trade registry directorate and in the Turkish Trade Registry Gazette are required.
-
20.11.2025
The Letter Of Intent Procsess in Merger and Acquisition Transactions
Merger and acquisition ("M&A") transactions are multi-layered processes from both legal and commercial perspectives. Before the parties proceed to the contractual stage, they enter into a preparatory phase in order to articulate their transactional intentions, exchange commercial expectations, and establish the legal framework. This preparatory phase constitutes the initial stage in which the parties discuss the fundamental principles of the transaction structure, formulate their negotiation strategies, and assess the transactional risks.
-
14.11.2025
New Constitutional Court Decision On Violation Of The Right To A Reasoned Decision Published İn The Official Gazette
1. INTRODUCTION The reasoning constitutes the part of judicial decisions that demonstrates the cause and justification for resolving the matter in the manner indicated in the operative section, and it is an extension of adjudication. The fact that the reasoning is satisfactory and consistent is crucial for ensuring the right to be legally heard and the right to a fair trial. By setting forth the court's impartiality, a reasoned judgment enables the parties to understand and be satisfied with the material and legal grounds upon which they have won or lost the case, owing to reasoning that genuinely aligns with the contents of the file, as well as with logic and law.
-
7.11.2025
Decision Of The Constitutional Court Concercing Excluded Pernonnel
In the Constitutional Court's Judgment published in the Official Gazette dated 22 September 2025.
-
24.10.2025
The Obligation for the Principal and Subcontractor Employers to Jointly Participate in Mediation Has Been Annuled by the Constitutional Court
An important Constitutional Court decision has been published regarding the mediation process that an employee can apply to with a request for reinstatement after the termination of employment relations in the workplace. The Constitutional Court ruled that the provision in paragraph (15) of Article 3 of the Labor Courts Law No. 7036, which states, "In cases where there is a principal employer-subcontractor relationship, for a request for reinstatement to be submitted to a mediator, the employers must participate in the mediation talks together and their intentions must be compatible for an agreement to be reached," is unconstitutional. The decision was published in the Official Gazette dated October 17, 2025, and numbered 33050.
-
23.10.2025
The Constitutional Court Has Annulled The Provision Granting The President Authority To Restrict Foreign Exhange And Money Movements!
In its decision No. 2024/193 Merits 2025/136 Decision1 dated 17 June 2025 ("Decision"), published in the Official Gazette on 15 October 2025, the Constitutional Court ("Court") annulled Article 1 of Law No. 1567 on the Protection of the Value of the Turkish Currency ("Law"). The annulled provision had stated that: "The President is authorized to make decisions for the regulation and restriction of the export from or import into the country of currencies, securities, and bonds, and of the purchase and sale of foreign exchange, cash, securities, bonds, precious metals, precious stones, and any goods and valuables made of or containing them; as well as of commercial papers and all means and instruments used for payment, and to take decisions aimed at protecting the value of the Turkish currency."
-
21.10.2025
Seizure of Property Belonging to Persons Other than the Debtor and Protection of Legal Rights
In enforcement proceedings, the seizure of property that does not belong to the debtor but rather to third parties is a situation frequently encountered in practice that leads to significant aggrievements. Uncertainties arising from property regimes complicate ownership relations, making it difficult to accurately determine to whom the property belongs during enforcement measures. Within this framework, when seizure is imposed on property belonging to the debtor's spouse or another third party, the most important legal remedy is the ownership claim (assertion).
-
20.10.2025
Mergers and Acquisitions and the Notification Obligation within the Framework of Competition Law
Mergers and acquisitions (M&A) are at the center of the growth and restructuring strategies of companies. These transactions, serving the purpose of companies to expand both nationally and internationally to increase their market shares or to enter into new markets, not only give rise to economic and commercial consequences but also carry the potential to directly affect the competition dynamics in the relevant market. Therefore, merger and acquisition transactions may affect the competition structure in the market. In this respect, while M&A transactions create strategic opportunities, they are also among the areas carefully scrutinized by regulatory authorities to preserve competitive order.
-
17.10.2025
Important Amendment to the Organized Industrial Zones (OIZ) Implementation Regulation: Additional Time Granted To Participant
Published in the Official Gazette No. 33050, dated October 17, 2025, the "Regulation Amending the Organized Industrial Zones Implementation Regulation" introduces a new Provisional Article 13 to the existing regulation.This new provision allows OIZ participants who have not yet obtained a building permit or a workplace opening and operating license to apply for an extension period under certain conditions.
-
15.10.2025
Current Status Of The Obligation To Maintain Commercial Books In Electronic Form
1. INTRODUCTION With the Communiqué Amending the Communiqué on Keeping Commercial Books Not Related to the Accounting of the Enterprise in Electronic Form, published in the Official Gazette dated September 20, 2025 and numbered 33023 (“Amendment Communiqué”), significant amendments have been introduced to the Communiqué on Keeping Commercial Books Not Related to the Accounting of the Enterprise in Electronic Form, published in the Official Gazette dated February 14, 2025 and numbered 32813 (“Communiqué”).
-
25.9.2025
Social Security Procedures To Be Carried Out By The Employer Following A Reinstateme
Upon receiving notification of a final and binding reinstatement decision, if the employee communicates their intention to return to work within 10 business days, the employer may either reinstate the employee or refuse reinstatement by paying both the four months' idle period wages determined by the court and the compensation for non-reinstatement. As seen, the employer has two alternative courses of action in this situation; however, the procedures to be carried out before the Social Security Institution (SGK) differ in each case.
-
19.9.2025
The Court of Cassation has Ruled That The Competent Court Fot Cases Brought On The Grounds Of Volation Of The Non-Competition Clause Is The Commercial Court of First Instance
1. Introduction The duty not to compete is a type of loyalty obligation owed by the employee to the employer. The employee undertakes not to compete with the employer during the term of the employment contract as part of their loyalty obligation. However, Turkish law does not contain any legal provisions prohibiting the employee from competing with the employer after the employment contract has ended. However, the parties may freely agree that the employee will not compete with the employer after the termination of the employment contract. Articles 444-447 of the Turkish Code of Obligations also contain provisions and restrictions regarding non-competition agreements that may be established between the employee and the employer.
-
16.9.2025
Transfer Fee: Legal Characterization and Practical Application
1. Introduction The concept of a transfer fee is not directly defined in the Turkish Labor Code; its framework and legal nature in practice have largely been shaped by the decisions of the Court of Cassation (Turkey). This practice, which arises particularly in sectors with intense competition and limited skilled labor, is a type of payment that employers must carefully consider within the scope of their employment policies.
