Export Proceeds Conversion Requirement in Turkey: Key Rules for International Businesses

Businesses exporting goods from Turkey must comply with foreign exchange regulations governing the collection, documentation and conversion of export proceeds. These requirements are particularly important for foreign-owned companies, international trading businesses and Turkish subsidiaries of multinational groups that receive payments from overseas customers.

Understanding the rules is essential not only for managing foreign currency receipts but also for meeting banking requirements, closing export accounts and maintaining accurate financial records.

Export Proceeds Repatriation and Currency Conversion Are Different Obligations

One of the most important points for exporters is that bringing export proceeds into Turkey and converting a portion of those proceeds into Turkish lira are separate regulatory obligations.

Under the general framework described in Turkey’s export proceeds regulations, eligible goods export proceeds are generally required to be brought into Turkey within 180 days of the actual export date, subject to applicable exceptions and special arrangements. The legally relevant date should be checked against the customs documentation rather than assumed to be the invoice date or payment due date.

Exporters must also complete the required banking documentation and ensure that the relevant export account is closed in accordance with the applicable procedures.

The mandatory foreign currency conversion requirement is a separate matter. It concerns selling a prescribed portion of eligible export proceeds through the bank responsible for the relevant transaction. Complying with one obligation does not automatically establish compliance with the others.

What Is the Mandatory Conversion Rate in Turkey?

Under the temporary framework described in current guidance, the mandatory sale rate is 35% of eligible export proceeds linked to an Export Proceeds Acceptance Certificate (İhracat Bedeli Kabul Belgesi — İBKB) or, where applicable, a Foreign Exchange Purchase Certificate (Döviz Alım Belgesi — DAB).

The applicable period, calculation basis and transaction requirements must be verified against the regulations in force when the proceeds are processed. The 35% rate is a temporary measure, not a permanent percentage that exporters should assume will apply indefinitely.

Businesses should therefore confirm the latest provisions of the Central Bank of the Republic of Türkiye’s Export Circular and the relevant implementation instructions before relying on a particular rate or deadline.

How Is the Mandatory Sale Amount Calculated?

The calculation begins with the eligible export proceeds linked to the relevant İBKB or DAB. The applicable percentage is then applied to that documented amount, subject to the specific rules governing the transaction.

For example, assume an exporter receives USD 100,000 from an overseas customer, but only USD 80,000 is linked to the relevant certificate and is subject to the mandatory sale requirement. If the applicable rate is 35%, the illustrative calculation would be:

• Eligible amount linked to the certificate: USD 80,000

• Mandatory sale rate: 35%

• Amount to be sold: USD 28,000

• Remaining amount before considering other applicable requirements: USD 52,000

This example is illustrative. The eligible amount and applicable treatment must be established from the transaction documents and current regulations. Exporters should not automatically calculate the requirement as 35% of every export invoice.

The Role of İBKB and DAB Documentation

An İBKB records the acceptance of eligible export proceeds under the relevant banking procedures. A DAB may also be relevant where the applicable framework provides for its use.

These documents help connect foreign currency receipts with the underlying export transaction and may be relevant to the mandatory sale process and closure of the export account.

Depending on the transaction, the bank may require customs declaration details, export invoices, payment confirmations and other supporting documents. Receiving money in a Turkish bank account does not, by itself, establish that every required documentation and account-closing procedure has been completed.

Exporters should confirm which bank is responsible for processing the transaction, which documents are needed and how the proceeds should be linked to the relevant export records.

Do the Same Rules Apply to Every Export Transaction?

Not necessarily. The applicable treatment may depend on the type of transaction, the relevant documentation and any specific exemption or special procedure under the regulations.

Exporters should assess service exports, micro-exports, transit trade, free-zone transactions, advance payments and receipts in different currencies separately where relevant. These transactions should not automatically be treated as subject to identical rules—or assumed to be exempt without checking the applicable provisions.

Where payments are received before shipment or in a currency different from that stated in the export documents, the company should coordinate with its bank to confirm how the transaction must be documented and processed.

Compliance Risks for Exporters

Businesses can encounter difficulties when they rely on outdated conversion rates, calculate the mandatory sale amount using an incorrect basis or fail to connect bank receipts with the corresponding export documentation.

Other risks include overlooking the applicable repatriation deadline, assuming that the export account has been closed automatically, and failing to retain adequate records of payments, certificates and bank transactions.

A practical compliance process should include monitoring export collections, tracking the applicable deadlines, confirming the relevant documentation, calculating any mandatory sale amount and retaining supporting records. Finance, accounting and treasury teams should coordinate these tasks, especially where the Turkish company reports to an overseas headquarters.

If an export account cannot be closed on time or a payment is delayed, the company should contact the responsible bank promptly to establish the applicable procedure and avoid assuming that an extension or alternative treatment applies automatically.

What Should Foreign-Owned Companies Do?

Foreign-owned businesses operating in Turkey should incorporate local export proceeds requirements into their group treasury and accounting procedures. Overseas payment policies alone may not address the specific documentation and banking steps required under Turkish regulations.

Companies should maintain a transaction-level record connecting each export invoice, customs declaration, payment, certificate and relevant bank transaction. They should also review regulatory changes periodically and obtain confirmation from their bank when the applicable rate, deadline or transaction treatment is unclear.

For a more detailed explanation of the repatriation deadline, İBKB and DAB documentation, calculation examples, transaction-specific considerations and compliance procedures, see A&M Consulting Co.’s guide to Export Proceeds Conversion Requirement in Turkey.

Conclusion

Turkey’s export proceeds framework requires businesses to distinguish between repatriating export proceeds, completing the relevant banking documentation and selling the prescribed portion of eligible foreign currency. Each obligation should be assessed independently under the rules applicable to the transaction.

By monitoring deadlines, coordinating with authorised banks and maintaining complete records, exporters can reduce compliance risks and improve the management of international receipts. For foreign-owned companies and international groups, integrating these requirements into routine accounting and treasury procedures is an important part of operating compliantly in Turkey.

Need Professional Advice?

Understanding Turkey’s export proceeds regulations can be challenging, particularly for foreign-owned companies managing international payments, banking documentation and local compliance obligations. The applicable conversion rate, documentation requirements and deadlines should be checked against the regulations in force for each transaction.

A&M Consulting Co. assists international businesses with accounting, tax consultancy and corporate compliance in Turkey. If your company exports goods from Turkey and needs guidance on its financial reporting or regulatory obligations, our team can help you assess the applicable requirements and organize your compliance procedures.

Sources

• Central Bank of the Republic of Türkiye (CBRT) — Export Circular (İhracat Genelgesi) — Rules and procedures concerning the repatriation and documentation of export proceeds.

• CBRT — Implementation Instructions for Foreign Currency Sales — Operational requirements relating to foreign currency conversion and supporting documentation.

• Republic of Türkiye Ministry of Trade — Export Legislation — Official export legislation and related regulatory materials.