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Omnibus Bill Aiming at Reducing the Effects of Covid-19 on Economic and Social Life Is Passed

The Omnibus Bill entitled the “Law on Reducing the Effects of the New Coronavirus (Covid-19) on Economic and Social Life and Amending Certain Laws” numbered 7244 is published in the Official Gazette dated 17 April 2020 (the “Law”). The Law implements new legislative regulations and makes amendments or additions to certain existing laws in order to provide precautions to reduce the effects of the Covid-19 outbreak on economic and social life. The novelties brought by the Law may be outlined as follows:​

  • Prohibition of termination of all employment agreements by employers for a 3 months’ period with the only exception of circumstances against moral and good faith rules (This period may be extended up to 6 months by the President).

  • Providing monetary support to employees taking unpaid leaves who may not benefit from short-time work allowance as well to employees who are not entitled to unemployment allowance after being laid off from work.

  • Allowing distribution of only 25% of net profit pertaining to the year 2019 by capital companies and prohibition of distribution of previous years’ profits, free reserves and advance dividend by these companies until 30 September 2020.

  • Non-collection of the parts of annual announcement and advertisement taxes and annual environmental sanitation taxes of enterprises, whose operations are suspended or who may not currently operate, that falls into the non-operation periods.

  • Postponement for 3 months’ period of debts belonging to Treasury or municipality owned immovables, national parks, Forestry Directorate General’s immovables and permits, KYK (Credit and Dormitories Institution) loan debts, revenue tax withholding payments of municipalities and social security premium payments, and allowing municipalities to support public transportation operations for 3 months.

  • Non-collection of annual subscription fee required to be paid by travel agencies to Travel Agencies Association for the year 2020 and allowing transfer of operation certificates belonging to travel agencies separately from agency title.

  • Assignment of medical devices and materials directly related to fight against epidemic disease and seized in fight against smuggling to the respective public institutions immediately.

  • Postponement of this year’s instalment payment of the agriculture sales cooperatives’ loan debts to Support and Price Stabilization Fund to 2021.

  • Extension of validity periods of licences granted within the scope of Agriculture Products Licensed Warehousing Law for one year.

  • Allowing municipalities to postpone for 3 months water bills regarding residences and workplaces whose operations are suspended.

  • Providing aids to elders and disabled people for 3 months without requiring revenue criteria and grave disability condition.

  • Restructuring of receivables of TEDAŞ arisen from electricity consumption.

  • Postponement of general assemblies of various institutions such as TOBB (Turkish Union of Chambers and Commodity Exchanges), cooperatives, associations and agricultural producers’ unions and ensuring continuity of duties, authorities and responsibilities of their present organs within this period.

  • Postponement of mukhtar (village or neighbourhood headmen) elections required to be made in 2020 to fill the vacancies.

  • Extension of periods and inspections of certificates of sea worthiness issued to commercial ships until 01 August 2020.

  • Allowing operations in Research & Development and design centres and technology development areas to be temporarily conducted outside these areas.

  • Determination of methods the Ministry of Treasury and Finance in relation to creation, registration, transmission, protection and submission of information and documents regarding this Ministry in case of force majeure events.

  • Allowing transfer of resources from the budget of the Ministry of Treasury and Finance to state universities’ faculties of medicine and dentistry, as well as to circulating capital establishment units of their health implementation and research centre units and institutions providing health services affiliated to their rectorates.

  • Extension of Turkey Wealth Fund’s immunity from certain laws and regulations to the parties transacting with TWF, as well as to their direct or indirect subsidiaries and affiliates, in relation to certain articles of the Capital Markets Law and Turkish Commercial Code.