Legal Books and Accounting
Financial records in statutory books (see Table 2) must be kept in the Turkish language, although additional records may be kept in other languages. Companies must use the Uniform Chart of Accounts in accordance with Turkish tax laws.
TRY is used as the currency in statutory books, although records can be kept in foreign currency as long as the TRY equivalent is shown. It is not compulsory to show the TRY equivalent on documents issued to customers abroad.
The Council of Ministers is authorised to decide whether to allow book-keeping with currencies other than TRY for establishments with ≥40% of capital owned by bodies without a legal residence, headquarter or business place in Turkey and with a paid-up capital of US$ ≥100 million or equivalent TRY at the related book certification date. Transactions in TRY are converted to foreign currency according to the buying rate announced by Central Bank of Turkey for the date of the relevant transaction.
Table 2. Statutory books required to be kept by joint stock and limited liability companies.
|Joint stock company||Limited liability company|
|Journal Ledger||Journal Ledger|
|Inventory Ledger||Inventory Ledger|
|General Ledger||General Ledger|
|Share Book||Share Book|
|Board of Decision Book||Annual General Meeting Book|
|Annual General Meeting Book|
|Stamp Tax Book|
The opening and year-end closing of statutory books must be authenticated by a public notary.
Accounting records of statutory books such as the Journal Ledger, Inventory Ledger and General Ledger must be retained for 5 years following the relevant accounting period according to Turkish tax procedural law and for a period of 10 years in order to comply with the New Turkish Commercial Code and Social Security System.