Quarterly 2023/4

The Quarterly is prepared every quarter in order to point out significant legislative amendments under Turkish law and developments in case-law.
I. Labor Law:

The minimum wage for 2024 is increased to Net TRY 17.002 (from Net TRY 11.402,00) and the State support granted to the employers is increased to TRY 700 (from TRY 500).

II. Corporate Law:

The minimum capital amount requirement for joint stock and limited liability companies to be incorporated after January 1, 2024, has been increased as below:

• For joint stock companies increased to TRY 250.000 (from TRY 50.000),
• For limited liability companies increased to TRY 50.000 (from TRY 10.000).

It is noteworthy to clarify that incorporated companies are not obliged to comply with the aforementioned amendment. Nevertheless, the Ministry of Trade has suggested to the incorporated companies to increase their capital by at least the determined amounts to strengthen their equity positions.

III. Competition Law:

The Turkish Competition Board has decided to initiate an investigation on 23.11.2023 against undertakings operating in the market of construction chemicals (e.g. Basf, Sika, Chryso - Saint Gobain, Mapei, MBCC) regarding violation of Article 4 of the Act no 4054 on the Protection on Competition by means of agreeing on price increases and pricing strategies, exchanging competitively sensitive information, bid rigging, making no poaching agreement and agreement to fix wages, resale price maintenance, restricting online sales and/or restricting customers/regions.

In October 2023, the European Commission also carried out dawn raids to construction chemical companies in cooperation with the UK, Turkish and US competition authorities.

IV. Tax Law:

The revaluation rate, which is applied to annually increase certain taxes, charges and fines, is announced at the rate of 58,46% for 2024. The President has the authority to reduce or increase this rate by 50%.

V. Banking Law:

Banking Regulation and Supervision Agency’s (“BRSA”) Regulation on Determination of Risk Groups and Credit Limits (“Regulation”) published in Official Gazette dated December 21, 2023.

Regulation has enhanced the restrictions over the companies operated by a certain risk group. In this regard, loans granted to (i) a person, or a risk group are limited to 25% of a bank's equity and Tier 1 capital, and (ii) a bank in a risk group are limited to 20% bank's equity and Tier 1 capital. New amendments shall be effective as of January 1, 2024.

VI. Personal Data Protection Law:

The Turkish Personal Data Protection Authority (“DPA”) published the Guideline on the Issues for Consideration about Processing of Genetic Data (“Guideline”) on October 13, 2023.

Guideline differentiates genetic data from other special categories of personal data. Natural person can be identifiable by raw data and biological samples even if they are not subject to any analysis.

VII. Procedural Law:

The Constitutional Court has published a significant decision on request of appeal. The Court annulled the monetary limits for the request of appeal in administrative jurisdiction. 

Such annulment amendment shall be effective as of September 21, 2024.

(For more information, please contact us via e-mail sdundar@dundarsir.com)