RESTRICTIONS HAVE ENDED: COMPANIES CAN NOW FREELY DISTRIBUTE DIVIDENDS :

The restrictions on companies’ distribution of their profits have been lifted as of 1 January 2021. In other words, it is now possible for companies to distribute their previous year's profits and free reserves and to authorize their board of directors to distribute advance profits.

GOVERNMENT PUBLISHES EXCEPTIONS TO RESTRICTIONS ON DISTRIBUTION OF PROFITS:

Exceptions to restrictions on companies’ distribution of their net profits in 2019 was published in the Official Gazette on 17 May 2020 through the Communiqué on the Principles and Procedures of Implementation of the Temporary Article 13 of the Turkish Commercial Code and entered into force the same day.

LEGISLATIVE PROPOSAL PASSES PARLIAMENT: PROFIT DISTRIBUTIONS BY COMPANIES ARE NOW RESTRICTED:

The Omnibus Law provides for a temporary article to be inserted into the Turkish Commercial Code no. 6102, setting out restrictions on companies’ distribution of their net profits in 2019. Accordingly, cash profit distribution of companies cannot exceed 25% of their net profits belonging to 2019.

LEGISLATIVE PROPOSAL SETS OUT RESTRICTIONS ON PROFIT DISTRIBUTIONS BY COMPANIES :

Legislative Proposal concerning the Law on Diminishing the Negative Impact of the Novel Coronavirus in Financial and Social Life and Amendment to Certain Laws is submitted to the Grand National Assembly as of 14 April 2020. Article 11 of the Legislative Proposal provides for a temporary article to be inserted into the Turkish Commercial Code, setting out restrictions on companies’ distribution of their net profits in 2019.