Turkey FX Conversion Support 2026: New 10% FX Position Test, Certification Requirements and Value-Added Limits

What Changed in Turkey’s FX Conversion Support Scheme?

Türkiye’s foreign exchange conversion support mechanism was introduced to encourage companies to convert qualifying foreign-source FX revenues into Turkish lira.

The framework has become increasingly relevant to exporters, service exporters and companies generating foreign-currency revenues. According to the Central Bank of the Republic of Türkiye (CBRT), approximately 44,000 firms have benefited from the scheme since its introduction in 2023, while the share of beneficiary firms among exporters reached approximately 34% in 2026.

The rules applicable from 1 October 2026 represent a structural change. Eligibility is no longer primarily based on a post-conversion restriction on purchasing foreign currency. Instead, the CBRT is placing greater emphasis on the company’s actual balance-sheet FX position and the economic value created through domestic operations.

1. The New 10% FX Position Ratio Test

To benefit from the scheme under the new framework, the company’s FX position ratio must not exceed 10%.

The CBRT describes liquid FX assets as including specified foreign currency-denominated balances such as cash, bank deposits, securities, certain checks and payment instruments, and receivables from shareholders, affiliates and subsidiaries.

Example

If the same company held TRY 10 million equivalent of relevant liquid FX assets, the ratio would increase to 12.5%. It would therefore fail the 10% test for the relevant assessment.

2. One-Month FX Purchase Restriction Removed

Under the previous mechanism, a company receiving FX conversion support generally committed not to purchase foreign currency for one month.

For new transactions from 1 October 2026, this commitment has been removed. The FX position ratio test now performs the principal balance-sheet control function.

3. Support Limits Are Now Linked to Value Added

One of the most significant changes for larger exporters is the introduction of a firm-level value-added limitation.

Under the new framework, the amount of export proceeds that a company can sell under the FX conversion support mechanism within a year is linked to the value added generated by the company.

For companies reporting a negative operating profit, the CBRT framework treats the operating profit component as zero for this calculation.

Accordingly, the new rules make the interaction between statutory accounting, corporate tax reporting, payroll data and treasury operations significantly more important.

4. TRY 100 Million Annual Support Cap

The total FX conversion support available to a company is capped at TRY 100 million per year.

The final quarter of 2026 is treated as the first limit-utilisation period. For this period, one quarter of the calculated annual value added and one quarter of the annual support cap apply.

5. What Is the FX Conversion Support Rate?

The support rate was originally 2% of the Turkish lira equivalent of qualifying FX converted under the scheme.

The rate was temporarily increased to 3%, and according to the CBRT’s September 2026 explanation, the temporary 3% rate remains applicable until 31 January 2027.

Companies should nevertheless verify the rate, transaction eligibility and available limits applicable on the actual conversion date.

6. FX Position Notification Form and SMMM/YMM Certification

The new balance-sheet test also creates an additional documentation requirement in banking practice.

Companies seeking to execute qualifying transactions may be requested to provide an FX Position Notification Form prepared and certified by their Turkish Certified Public Accountant (SMMM) or Sworn-in Certified Public Accountant (YMM).

The documentation package may include:

• the completed FX Position Notification Form;
• company approval/signature;
• SMMM or YMM certification;
• a valid professional activity certificate demonstrating the accountant’s registration with the relevant professional chamber; and
• underlying accounting and financial records supporting the calculation.

Banks may independently verify the validity of the professional activity certificate.

7. The Form Is Generally Valid for 15 Days

Based on current banking implementation, the FX Position Notification Form is valid for 15 days from its date of preparation.

Multiple qualifying FX conversion transactions may generally be completed using the same form during its validity period, subject to continuing compliance with the applicable rules and available limits.

For businesses with frequent export receipts, this makes timing important. Treasury teams should coordinate the certification date, expected FX collections and planned conversion transactions.

8. The New Framework Is More Relevant to Export Suppliers

The October 2026 framework is designed not only for direct exporters. It also seeks to improve access for Turkish companies that produce goods for export through intermediary exporters.

Under the new structure, after an intermediary exporter reaches its own firm-level value-added limit, it may convert qualifying FX proceeds on behalf of an eligible supplier, with the support transferred directly to the supplier.

A similar mechanism may also apply to intermediaries in foreign currency-earning service activities and the underlying service providers.

This can be particularly relevant for manufacturing suppliers, tourism businesses, agencies and other companies participating indirectly in export or service-export chains.

What Does This Mean for Foreign-Owned Companies in Türkiye?

For Turkish subsidiaries of multinational groups, the new framework should be considered not merely as a bank transaction issue but as part of the company’s broader statutory accounting and treasury controls.

A company may appear operationally eligible but fail the 10% test because of excess FX cash, an intercompany balance or another liquid FX asset recorded in its Turkish statutory accounts.

Conversely, companies that were previously unable to use the programme because they needed to continue purchasing FX for imports or operating expenses may find the new framework more workable, provided that they satisfy the FX position ratio and other requirements.

Recommended Process Before an FX Conversion

What Happens if the Information Is Incorrect?

The information included in the FX position documentation should be complete, accurate and reconcilable to the company’s books and supporting records.

Where support has been obtained on the basis of incorrect or misleading information or documentation, recovery of the support together with applicable interest, taxes or other financial consequences may arise under the relevant rules. Further restrictions on access to support or financing programmes may also become relevant depending on the circumstances.

For material transactions, companies should therefore perform a pre-conversion reconciliation rather than preparing the calculation solely from headline balance-sheet figures.

Frequently Asked Questions