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Mr. Mehmet Şimşek announced that in order to support the Turkish lira, it was decided to extend the tax allowance established for protected cash deposits in banks until the end of this year 2023.

The tool for protecting bank accounts from fluctuations in the exchange rate of the Turkish lira is one of the most important tools of the government to ensure that savers have possession of the local currency without being harmed by its depreciation. Through it, the Turkish Central Bank gives a kind of financial protection to depositors’ money, in order to ensure that depositors maintain the value of their deposits. In Turkish lira, and their capital is not affected by fluctuations in the exchange rate of the lira. Indeed, this tool encouraged deposits in Turkish lira by citizens and foreigners alike since its adoption by the Turkish government in late 2021, as it protects depositors in banks in Turkish lira from exchange rate fluctuations, as they get On the prescribed interest in addition to the differences with the dollar exchange rate between the time of deposit and withdrawal if the Turkish lira falls.
It is also hoped that this mechanism will contribute to achieving stability in the exchange rate of the lira, at a time when tax exemption on these accounts contributes to encouraging bank deposits and thus enhancing investment methods, while the government continued to impose tax withholding on all time deposits in foreign currencies at rates ranging between 18% and 20%.
Head Quarter Legal Counsel