Benefits of Lease Certificates

- Fixed on Various Terms: While the rate of return differs in participation accounts according to the period of the investment, lease certificates offer the opportunity of a fixed return in short, medium and long terms to the holder.

- Periodic Return Payments: Lease certificates are an alternative investment instrument for investors who aim to enjoy returns on regular and periodic lease income.

- Asset-Based: Lease certificates are based on a tangible material reality and a real commercial relationship that can be sold and converted into a financial source.

- Liquidity Potential: Lease certificates traded on Borsa İstanbul can be sold and purchased in the secondary market. Investors in need of liquidity may partially or wholly convert their securities into cash before maturity.

- Tax Benefits: Within the scope of an artifact contract in which the ALC becomes a business owner, it is issued to enable the creation of the work.

Deposit accounts are subject to 12% withholding tax at one-year maturity and 15% at 6-months maturity. On the other hand, regardless of the maturity, lease certificates are subject to 10% withholding tax for individual investors and 0% for corporate investors.

Revenues of natural persons who are limited and fully-obligated taxpayers, foundations, associations and similar entities generated from lease certificate trading and lease payments are subject to 10% income tax. A 10% withholding tax is the final tax for natural person investors, and not included in the annual income tax returns.

Earnings of joint stock companies, limited liability companies and limited partnerships; investment funds and investment trusts subject to Capital Markets Board (CMB); and foreign funds and partnerships and those that have been identified by the Ministry of Finance to be similar to the aforementioned on the trading of lease certificates and lease payments are subject to a withholding tax of 0%.

The rest is subject to a 10% withholding tax, and the paid tax amount is deducted from the calculated corporate tax.

Corporations obliged to pay Banking and Insurance Transactions Tax (BSMV) should pay 1% and 5% BSMV for their earnings on lease certificate trading and lease payments, respectively.

These rates are subject to change by the Ministry of Finance.

Lease certificate returns vary based on the issue. Lease certificates are not subject to Savings Deposit Insurance Fund of Turkey and there is no state guarantee in the form of any amount for lease certificates.