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REQUESTS FOR CHANGES IN SECTOR-RELATED LAWS AND
REGULATIONS
Suggestions for improving the competitive environment:
1. Non-bank financial institutions should be allowed, in
the same way that banks are, to take advantage of the
provisions of
article 5/1-f of the Corporate Tax Code
and of
article 17/4-r of the Value Added Tax Code
concerning assets that are sold in order to liquidate non-
performing loans.
2. Amendments should be made in
Law 6361
and in the
Corporate Tax Code
to allow financial leasing, factoring,
and financing companies to deduct, in the same way that
banks do, specific reserves that they set aside pursuant to
BRSA rules from their corporation tax assessment base.
3.
Article 22 of Law no: 6361
should be amended so as to
make it clear that a lessee who becomes the owner of a
property at the conclusion of a real estate property-based
financial leasing contract in which a foreign-owned leasing
company is involved is required to satisfy the conditions
specified in
article 36 of the Land Registry Act (Law no:
2644)
.
4. Changes should be made to allow financial leasing,
factoring, and financing companies to make use of the
Address Sharing System specified in
article 45 of the Civil
Registry Services Act (Law no: 5490)
.
5.
Article 26 of the Land Registry Act (Law no: 2644)
should be amended so as to exempt financial leasing,
factoring, and financing companies to issue a bond when
establishing property liens.
6.
Article 52 of CBRT’s Governing Law no: 1211
should be
amended so that financial leasing, factoring, and financing
companies may also engage in open market operations.
7.
Article 25-3 of “Regulation on Roadway Transport”
should be amended so as to treat vehicles that are acquired
through financial leasing as “self-owned vehicles”.
8. Changes should be made so that financing companies
are included within the scope of
“Council of Ministers
Resolution 2016/9538 Concerning Treasury Support to
Be Provided to Credit Institutions”
and so that financial
leasing, factoring, and financing companies’ capital stake
requirements are made proportional to those of banks.
COMMITTEES AND WORKING GROUPS
In the wake of AFI’s 2016 general meeting, the Association’s
factoring sector working groups were reorganized.
AFI Factoring Sector Committees
• Legislative & Legal Committee
• Financial Affairs Committee
• Financial Crimes Investigation Board & Internal Control
Committee
• IT Committee
• Innovation & Business Development Committee
• Corporate Reputation & Communications Committee
The following working groups also continue to meet as needs
require:
• CIRS Working Group
• Supply-Chain Working Group
• Sharia-Compliant Products Working Group
• Refactoring Implementation Working Group
SECTOR-RELATED DEVELOPMENTS
“Stock Finance Standard Procedure”, which sets out procedures
and practices that should be adhered to throughout the sector
when financing goods and services that are being purchased for
resale was published on 20 January 2016.
“Regulation on the Amendment of the Regulation on the
Establishment and Operating Principles of Financial Leasing,
Factoring, and Financing Companies” was published on
27 September 2016.
“Regulation on the Amendment of the Regulation on the
Establishment and Operating Principles of Financial Leasing,
Factoring, and Financing Companies” was published on
2 June 2016.
“Central Invoice Recording System (CIRS) Application
Principles”, which was prepared pursuant to “Regulation on
the procedures and principles concerning the establishment,
operation, and management of the Central Invoice Recording
System” dated 8 July 2015 was updated on 28 August 2016.
Various uncertainties about leaseback-related tax issues
were cleared up with the publication of Law no: 6728 on
9 August 2016.
2016 AFI operations
Annual Report 2016
The Association of Financial Institutions
50