For companies with foreign currency income, the decision to convert to Turkish lira directly affects working capital, financing needs, and exchange rate risk. Foreign Currency Conversion Support (DDD) is a mechanism that provides companies with additional payments in exchange for selling certain types of foreign currency to the Central Bank of the Republic of Turkey (TCMB) through banks.

A significant change has been made to the application as of October 1, 2026. The previous requirement of a one-month commitment not to purchase foreign currency has been replaced by a foreign currency position requirement; sales eligible for support are linked to a value-added limit calculated based on the company's operating profit and labor costs. The possibility of benefiting from the support has also been strengthened for suppliers and manufacturers participating in exports through intermediary exporters. Therefore, in the new period, it is not sufficient for companies to consider only the support rate. The source of the foreign currency, the company's readily available foreign currency assets, the available sales limit, documentation procedures, and the short-term payment plan must be evaluated together.

What is foreign exchange conversion support?

Foreign exchange conversion support is a cash subsidy calculated based on the sale of foreign-sourced foreign currency to the Central Bank of Turkey (TCMB) through an intermediary bank. A company's exchange of foreign currency at a bank alone does not entitle it to support. For the transaction to be eligible for support, the foreign currency must be obtained from a suitable source, the necessary documents must be submitted, and the company must meet the position and limit conditions.

The basis for the implementation is Circular No. 2023/5. The framework for the new period was established by Amendment Circular No. 2026/11; operational details are regulated in the Central Bank of Turkey Implementation Instruction dated October 1, 2026.

What is the current support rate?

As of October 3, 2026, the support rate is 3%. This rate applies until and including January 31, 2027. The base rate in the circular is 2%, and the 3% application is based on a temporary regulation. Therefore, the rate should be rechecked on the transaction date for subsequent transactions. The foreign exchange purchase price obtained by the company from any bank is not used in the support account. According to the Implementation Instruction, the conversion rate is the foreign exchange purchase rate announced by the Central Bank of Turkey at 11:00 AM on the day the foreign currency is converted to Turkish Lira.

The calculation is as follows:

Support amount = Amount of foreign currency sold under the support program × Conversion rate × Support rate

Example: Support account for $100,000 USD

Let's assume a company meets all eligibility requirements and sells $100,000 USD to the Central Bank of Turkey (TCMB) as part of the support program. For illustrative purposes only, let's assume the conversion exchange rate on the transaction day is 45 TL.

The 135,000 TL mentioned here is a separate support income from the foreign currency sales price. When calculating the company's net economic benefit, bank commissions, tax implications, and any future foreign currency needs should also be taken into account.

Who can benefit and which currencies are covered?

The Implementation Instructions define companies as legal entities legally domiciled in Turkey, excluding banks and other financial institutions designated by the Central Bank of Turkey (TCMB). Therefore, sole proprietorships should not be considered under this definition solely on the grounds that they engage in export activities.

The foreign currency sources covered by the support program primarily include the following:

• Foreign exchange earnings from goods exports.
• Foreign currency earnings from services provided to non-residents and brought into the country. Foreign currency earned from services provided to foreigners in Türkiye is also included within the scope of this definition.
• Foreign currency revenue earned by companies operating in the free zone solely from sales made abroad.

"Foreign exchange earnings from the export of precious metals as defined in Decree No. 32 are excluded from the scope."

Not all funds received from abroad qualify as foreign currency income eligible for support. Capital transfers, loans, joint debt, or intra-group financing transactions do not have the same legal status as export or foreign currency-earning service income. The contractual and invoice basis of the transaction is as important as the bank transfer description. The currencies that can be sold directly to the Central Bank of Turkey (TCMB) are US Dollars, Euros, and British Pounds. Other currencies traded by the TCMB are converted into one of these three currencies by an intermediary bank before being offered for sale.

The key requirement for the new era: the foreign exchange position ratio must not exceed 10%.

From October 1, 2026, companies wishing to benefit from the support must not have a foreign currency position ratio exceeding 10%. A ratio exactly at 10% is acceptable under this condition. Ratios above 10% will prevent eligibility for the support.

The calculation is as follows:

Foreign exchange position ratio = Turkish Lira equivalent of liquid foreign currency assets / The greater of net sales revenue and total assets.

This calculation is not a classic net foreign exchange position calculation where all foreign exchange liabilities are subtracted from the company's foreign exchange assets. It is based on the items specified in Annex C of the instruction.

Which items are considered in liquid foreign exchange assets?

According to the calculation in the form, the amounts of the following items within the scope of foreign currency and gold are taken into consideration:

• Till
• Checks received
• Domestic and foreign bank deposits
• Other readily available values
• Securities
• Receivables from partners, affiliates and subsidiaries

Issued checks and payment orders are deducted from this total.

Although trade receivables are listed as a separate heading in the form, they are not included in the formula relating to total readily available foreign currency assets. Similarly, foreign currency loans and trade payables are not used as a general offsetting item in this formula. This distinction is particularly important for companies that automatically consider themselves eligible due to having high foreign currency debt.

Which date and exchange rate are used in the calculation?

Ready foreign currency and gold assets are determined based on balances as of the date the form is completed . However, when calculating the Turkish Lira equivalents of these assets:

• For foreign exchange, the exchange rates announced by the Central Bank of Turkey (TCMB) on the first business day of the current year are:
• Gold prices announced by the Istanbul Stock Exchange on the first business day of the current year.

It is used. Assets and liabilities indexed to foreign currency or gold are also evaluated according to the form descriptions.

For the denominator, the larger of the total assets of the most recent year-end balance sheet reported in the annual tax returns submitted to the Revenue Administration and the annual net sales revenue in the same return is taken as the basis.

Therefore, the conversion rate used to calculate the support amount is different from the valuation rate used in the position form.

Example: Foreign exchange position suitability calculation.

Let's say a company has the following data as defined according to Annex C rules:

Foreign exchange position ratio = 8,000,000 / 120,000,000 = 6.67%

The company meets the foreign exchange position requirement.

If the company had readily available foreign currency assets of 13,000,000 TL, the ratio would increase to 10.83%, and the company would not be able to meet this condition. Furthermore, the fact that the company has foreign currency loans does not allow these loan amounts to be directly deducted from readily available foreign currency assets in the formula.

The role of the financial advisor in the Foreign Exchange Position Declaration Form.

The Foreign Exchange Position Declaration Form is prepared by a Certified Public Accountant (CPA) or Chartered Accountant (CA); it is approved by both the professional and the firm and submitted to the intermediary bank. The form must include a Certificate of Activity showing that the professional is registered in the employee list of the relevant professional association. For other forms prepared and approved by the same professional, submission of the original Certificate of Activity within three months of its submission to the bank is sufficient. The position form itself is valid for 15 days from the date of issuance. Multiple transactions can be made under the same form within this period. The bank will verify the conditions for each application.

The preparation required from the company's perspective is not limited to simply sending the transaction bank's statement to the financial advisor. Other banks, foreign accounts, cash, securities, and related party receivables must also be fully reported, including all relevant information.

How is the value-added-based sales limit for a company calculated?

In the new period, the Turkish Lira equivalent of the foreign currency that the company can sell within the scope of the support is limited by the company sales limit calculated by the Central Bank of Turkey (TCMB).

The value-added calculation that forms the basis of this limit is as follows:

Value added = Positive operating profit + 12-month labor cost

Operating profit is based on the amount declared by the company to the Revenue Administration. Labor costs consist of the total of salaries and wages reported to the Social Security Institution (SGK) for the purpose of calculating insurance premiums, and the social security premiums paid on behalf of employees.

The profit mentioned here is not the net profit for the period or the corporate tax base. If the company has incurred a loss, the negative operating profit is not deducted from labor costs; only labor costs are considered in the calculation. Therefore, a loss-making company is not entirely prevented from benefiting from the support.

Example: Separating the sales limit from the support amount.

Based on the data used by the Central Bank of Turkey in its calculations, a company's:

• Operating profit is 12,000,000 TL.
• The labor cost for 12 months is 28,000,000 TL.

let it be.

The company's added value is 40,000,000 TL.

This amount is not the amount of support that can be received. It forms the basis for the limit regarding the TL equivalent of the foreign currency that can be sold under the support program. Assuming that the 3% rate applies and other conditions are met, a supported sale of 40,000,000 TL would correspond to a support of 1,200,000 TL. The limit that the company can actually use is determined based on the data finalized by the Central Bank of Turkey (TCMB) and previous uses. Preliminary calculations made within the company do not replace obtaining confirmation of the available limit from the bank.

Will the limits be updated?

The company's sales limit is scheduled to be updated twice a year, primarily in January and July. Unused limits do not carry over to the next calendar year. For companies that lack operating profit data or have unusual characteristics that prevent this data from being used in the limit calculation, the limit can be calculated solely based on labor costs. The instruction also includes a specific procedure for including the operating profit for the relevant year in the calculation if it is substantiated by an e-CPA full audit report. This does not imply a general requirement for a full CPA audit for every application.

In the last quarter of 2026, the limits will be applied at one-quarter.

For the period from October 1st to December 31st, 2026, the company's sales limit will be applied as 25% of the calculated amount.

Furthermore, the maximum support amount, normally set at 100,000,000 TL for a calendar year, has been reduced by a quarter for this period. Thus, the maximum support limit for the last quarter of 2026 will be 25,000,000 TL .

These two boundaries are different:

Example: Last quarter account

For a company whose added value is calculated as 40,000,000 TL:

Sales limit for the last quarter = 40,000,000 × 25% = 10,000,000 TL

If the company also meets other conditions, it can make a profit from the sale of foreign currency equivalent to 10,000,000 TL during this period:

10,000,000 × 3% = 300,000 TL

They can get support.

The company's ability to receive 25,000,000 TL in support in the last quarter does not solely depend on the general support upper limit being at this amount. Its own sales limit must also allow for this.

In this pro-rata calculation, foreign exchange sales and support uses prior to October 1, 2026 are not deducted from the final quarter limits.

Are export proceeds sales obligations and support payments the same thing?

The repatriation of export proceeds, their documentation in the Export Proceeds Acceptance Certificate, the fulfillment of sales obligations, and the closure of the export account are all subject to separate regulations.

Foreign exchange conversion support is an incentive linked to these transactions, but it also has its own eligibility conditions.

The fact that export proceeds have been sold to the Central Bank of Turkey (TCMB) does not automatically guarantee the payment of support. The support request and supporting documents should be planned with the bank before the transaction.

What points should be considered regarding documentation and deadlines?

The Implementation Instructions prescribe different controls for different types of income:

In advance exports, the customs declaration to be submitted later must state "Advance Payment" as the payment method, and the declared amount must be at least equal to the amount of foreign currency sold to the Central Bank of Turkey (TCMB).

In advance export transactions, the Turkish Lira equivalent of the foreign currency is received during sales, while the support payment is made after the necessary documents are submitted. The sales limit is used during the foreign currency sale. Therefore, it would not be correct to include the support, which has not yet been received, in the cash plan as if it were an amount to be collected immediately.

Foreign currencies transferred between banks

The transfer of foreign currency from another domestic bank alone does not automatically exclude it from eligibility. However, the foreign source must be traceable via SWIFT message and related documents. Furthermore, the bank verifies that the balance in the account does not fall below the amount of export proceeds received between the date the export proceeds are received and the support request, and that the account is not replenished with non-export foreign currency. Therefore, using the collected export proceeds and then bringing them back to the same balance through a joint transfer or loan does not guarantee eligibility for support.

How can suppliers and manufacturers benefit from the support?

The new system should also be evaluated from the perspective of firms participating in exports through intermediary exporters.

In order for eligible foreign currencies, which are not subject to advance export payments, to be sold by the intermediary exporter on behalf of the supplier or manufacturer, the documents specified in the instruction are submitted to the bank. These include:

• The declaration within the scope of Annex E,
• Export brokerage contract,
• Customs declarations in which the supplier or manufacturer's title is registered,
• Relevant export registered goods invoices

It is located.

In this transaction, it is assumed that the foreign currency sale is made by the supplier or manufacturer, and the support is transferred directly to that company's account .

Example: Selling through an intermediary exporter.

Manufacturer company A sells its products abroad through intermediary exporter company B. Let's assume that company A meets the relevant documentation and eligibility requirements, and that a foreign currency sale equivalent to 2,000,000 TL is made on behalf of company A. A support payment of 60,000 TL, calculated at a rate of 3%, is paid directly to company A. This does not mean that every company selling goods to the exporter automatically receives support. The intermediary export and documentation structure required in the directive must be established. For companies acting as intermediaries in foreign currency earning services, all customer collections cannot be considered as their own income. The amount of support an intermediary can receive on their own behalf is determined based on the intermediary service fee they are entitled to.

Limitations that should not be overlooked in special transactions

Some processes require further examination even if general eligibility requirements are met:

• Effective payments received: Support requests for cash payments for foreign currency-earning services and cash payments for goods exports will not be accepted. For non-cash payments for goods exports, a Cash Declaration Form and specific bank conditions will be required.
• Inward Processing Regime: If there are duty-free imports subject to export, the amount used as the basis for the support calculation is determined by deducting the amount of duty-free imports from the export proceeds. If the duty-free imports are equal to or higher than the export proceeds, no support is paid.
• Certain rediscount credits: According to the specific Annex-4 provisions referenced in the instruction, firms using these credits will not receive support for the duration of the credit term. This limitation should not be generalized to all rediscount credits.

In companies where foreign trade, finance, and accounting departments operate independently, this information should be combined into a single file before submitting the application.

How is bank commission calculated?

Intermediary banks may charge a commission of up to 1% of the support amount paid to the firm . This rate does not apply to the Turkish Lira equivalent of the converted foreign currency.

The maximum commission for the 135,000 TL support in the first example is:

135,000 × 1% = 1,350 TL

It is possible.

In this case, the remaining support before taxes, if any, related to the commission and the company's income tax is 133,650 TL. Prior to the transaction, the total cost, including the commission and any related taxes, should be obtained from the bank.

How should this be evaluated from an accounting and tax perspective?

In accounting, three elements must be tracked separately:

1. The amount in Turkish Lira obtained from the sale of foreign currency.
2. The exchange rate difference between the recorded value of the foreign currency account and the selling price.
3. Foreign exchange conversion support income.

Converting foreign currency to Turkish Lira does not mean that the entire principal amount is re-recognized as income. The conversion between bank accounts is recorded; the difference between the recorded value and the sales price is also accounted for separately.

Example: Separation of exchange rate differences and support income.

Let's assume that the recorded value of the $100,000 USD sold is 4,300,000 TL in accounting records. Let's also say the amount received from the sale is 4,500,000 TL, and the support provided is 135,000 TL.

In businesses using the Uniform Chart of Accounts, positive exchange rate gains can be tracked in account 646 Foreign Exchange Gains; support, on the other hand, can be tracked in a separate income sub-account appropriate to its nature. Using a special sub-account within account 602 Other Income for support is an accounting approach that ensures traceability; it should not be considered a mandatory account code as required by the Central Bank of Turkey's directive.

Is the support tax-exempt?

Receiving support alone does not automatically result in a corporate tax exemption. Under the general taxation approach, support income is included in corporate income; if there is a special exemption or different application, its legal basis must be established. The net corporate income principle in Article 6 of the Corporate Tax Law forms the basis of this assessment. The period in which the support income is recorded should be evaluated based on when the entitlement is finalized. Especially in the case of advance exports, the application process and the finalization of the support entitlement are not the same stage. Regarding VAT, since the payment is not in the nature of the price of a good or service provided by the company to the Central Bank of Turkey (TCMB), it is considered that VAT should not be calculated within the framework of the general support payment approach. This is an interpretation of the general principle regarding support that is not in return for a delivery or service.

Do the previous commitments not to buy foreign currency still remain in effect?

The removal of the one-month foreign currency non-purchase requirement for new applications does not nullify commitments made before October 1, 2026. According to transitional provisions, breaches of commitments made in the previous period will be subject to the old regulations. Similarly, support transactions related to advance export proceeds sold before October 1 will be conducted under the old directive. For example, a company that made a commitment to not purchase foreign currency in September while receiving support should not begin purchasing foreign currency in October solely on the grounds of the new regulation. The obligation arising from the previous transaction must also be checked.

Risks the company may face in case of improper use

Incorrect position reporting, inclusion of ineligible foreign currency in the support program, or obtaining support through false documentation may not only result in the repayment of the received support. The Implementation Instruction stipulates time restrictions for support and CBRT-sourced loan applications, in addition to repayment including exchange rate effects, interest, and related VAT amounts. The general regulation imposes a one-year restriction from the payment date for the first assessment, and a three-year restriction for subsequent assessments. There is also a provision that the time restriction does not apply if the total support amount under assessment does not exceed 100,000 TL and the calculated amount is paid. However, the CBRT reserves the authority to make further assessments depending on the nature of the case.

Until the repayment is completed, the support and credit requests from the Central Bank of Turkey (TCMB) of other firms with which a control relationship exists may also be affected. Therefore, the risk may not be limited to a single legal entity in some company groups. In addition, even if the export is canceled without the company's intent or fault, the support received on the canceled export proceeds will be refunded.

How should companies plan their transformation decision?

The support should primarily be evaluated for firms that need Turkish Lira working capital. Proper conversion of foreign currency used for salaries, taxes, and domestic supplier payments can provide additional resources to the company. Conversely, for companies with short-term import, licensing, loan, or other foreign currency payments, the decision should be made in conjunction with cash flow in the relevant currency.

For example, a company converts $100,000 USD at an exchange rate of 45 TL and receives 135,000 TL in support. Later, if it needs the same amount of foreign currency and the exchange rate rises to 46.50 TL, the additional cost due to the exchange rate change alone would be 150,000 TL. Considering the spread between buying and selling prices and commissions, the support advantage could disappear. This example is not an exchange rate forecast; it demonstrates that the support rate alone cannot be the sole decision-making criterion.

Before the transaction begins, the company needs to complete the following preparations:

• Matching foreign currency revenue with invoices, contracts, and foreign trade documents.
• To monitor the account transactions from payment to application.
• Preparing the position form and activity certificate with a Certified Public Accountant (CPA) or Chartered Accountant (CA).
• To confirm available sales and support limits with the bank.
• To define specific conditions such as advance export, electronic customs declaration (ETGB), export processing fee (DİR), or intermediary export.
• Calculate the net benefit by taking into account the commission and tax impact.
• Track sales price, exchange rate differences, and support income separately.
• Storing all documents in a single digital file, on a transaction basis.

The key to successfully benefiting from foreign currency conversion support is completing financial and accounting preparations before applying to the bank. In the new system, the amount of foreign currency a company collects is as important as the amount of added value it generates and the financial structure in which it holds this foreign currency.

Sources

• Central Bank of the Republic of Turkey — Implementation Instruction dated October 1, 2026
• Central Bank of the Republic of Turkey — New Era in Foreign Exchange Conversion Support, September 28, 2026
• Official Gazette dated August 1, 2026, No. 33327 — Circular No. 2026/11

This text has been prepared taking into account the regulations in effect as of October 3, 2026. The exchange rates in the examples are hypothetical.