Sukuk (A Lease Certificate) is a security issued by an Asset Leasing Company in order to finance the assets that are acquired or leased on behalf and for the benefit of certificate holders. It entitles its holders to receive the revenues derived from such assets in proportion to their shares.
Coupon payment: Sukuk entitles the holder of the leased assets to receive periodic fixed rental income.
Asset Based: All issued certificates are based on a real commercial relationship and a visible and tangible property.
Liquidity Opportunity: Sukuk is traded in Borsa Istanbul in which secondary market transactions are available for liquidity purposes. The investors may convert their certificates totally or partly to cash prior to maturity date.
Term: There are many options including mostly 3 months, 6 months and 1 year.
- The revenues of limited and fully responsible real persons, as well as legal persons such as foundations and associations from the purchase and sales of Lease Certificate is subject to 10%(or 15% of rent certificates issued by Kuveyt Turk) Income Tax withholding. The withholding of 10%(or 15%) is the final tax for the real person investors and is not included in the annual income tax return.
- Revenues arising from Lease Certificate purchase and sales and rental payments are subject to 0% income tax withholding for incorporated, limited and limited partnership companies, investment funds and investment partnerships subject to Capital Market Board (CMB), foreign funds and partnerships similar to these and those which are determined to be similar by the Ministry of Finance.
- Those outside these are subject to 10% withholding and the paid withholding is deducted from the calculated corporate tax. The institutions subject to Banking and Insurance Transaction Tax (BITT) must pay 1% over the Lease Certificate purchase and sale revenues and 5% over the rent payment as BITT.
* The rates mentioned above can be updated by the Ministry of Treasury and Finance.
* Foreign issuances of Lease certificates subject to income tax. Rental incomes and currency appreciation in second hand sales may be subject to income taxes. Annual declaration and payment responsibility belongs to the taxpayer.
For more information, you can visit our lease certificates page.