Türkiye's stock exchange, Borsa Istanbul, has been accepted as a “Recognised Stock Exchange” by His Majesty’s Revenue and Customs (HMRC), the U.K.'s tax, payments and customs authority, the institution said in a statement on Wednesday.
"Aiming to make our capital markets more visible and accessible, particularly among U.K.-based investors, Borsa Istanbul, with this step, also contributes to efforts to increase foreign investors' interest in our markets," it said.
Moreover, with recognition of Borsa Istanbul, "it will be possible for investors resident in the United Kingdom to benefit from tax advantages on their investments in our capital markets," it added.
"Income earned by holders of Individual Savings Accounts (ISA) from their investments in 'Recognised Stock Exchanges' is exempt from taxation in the United Kingdom," the statement further said.
It also mentioned that lease certificates traded on such recognized exchanges are evaluated under the category of "Alternative Finance Investment Bonds” in the U.K., which it said, "simplifies investors’ decision-making and reporting processes and reduces the compliance burden."
In addition, it suggested that a “Recognised Stock Exchange” is a designation attributed by His Majesty’s Revenue and Customs "to qualified exchanges that meet certain criteria," explaining that it means that thereafter it is officially recognized within the scope of U.K. tax legislation.
Borsa Istanbul also provided a list of “Recognised Stock Exchanges,” including major exchanges operating in various countries, such as the “New York Stock Exchange,” “Nasdaq,” “Euronext,” “London Stock Exchange” and others.
Anadolu Agency (AA) reported earlier this month that Turkish authorities were weighing different incentives to draw global investors. The measures come amid ongoing global crises and reportedly include lowering corporate tax for manufacturer-exporters, while also special tax regimes for foreigners are said to be under consideration.
Turkish markets have managed to maintain the positive trend they built at the start of the year during the first quarter and throughout April, despite the conflict between the U.S., Israel and Iran.
