What is KKDF (Resource Utilization Support Fund)?
What is KKDF (Resource Utilization Support Fund)?
The Resource Utilization Support Fund (KKDF) is a type of fund deduction levied on financial transactions in Turkey. Introduced in 1988, this fund was created to ensure economic stability, support resource utilization, and contribute to the implementation of specific economic policies. In this article, we will discuss what KKDF is, how it is applied, and the considerations under Turkey’s trade regulations.
What is KKDF?
KKDF is a type of fund deduction imposed on certain financial transactions, with the proceeds being transferred to the state budget. It is generally levied on transactions such as credit operations, deferred imports, and foreign currency loans. The primary objective of KKDF is to optimize resource utilization and maintain economic balance.
Applications of KKDF:
KKDF is applied to various financial transactions. The main application areas include:
Deferred Imports:
Definition: The KKDF rate applied to import transactions with deferred payment terms may vary over specific periods.
Features: Typically, a 6% KKDF deduction is applied to deferred import transactions.
Credit Operations:
Definition: KKDF deduction is made in loans denominated in foreign currency or Turkish Lira used in Turkey.
Features: A 3% KKDF is applied to foreign currency loans, while a 1% KKDF is applied to Turkish Lira loans.
Leasing Operations:
Definition: KKDF deduction is made in financial leasing (leasing) transactions.
Features: The KKDF rate for leasing transactions is determined as 1%.
KKDF Rates and Calculation:
KKDF rates vary depending on the type of transaction. Below are the KKDF rates and calculation methods applicable to different transactions:
Deferred Imports: 6%
Foreign Currency Loans: 3%
Turkish Lira Loans: 1%
Leasing Operations: 1%
KKDF calculation is carried out by applying the determined rates to the transaction amount. For example, in a deferred import transaction worth $100,000, a KKDF deduction of 100,000 x 6% = $6,000 would be made.
KKDF According to Turkey’s Trade Regulations:
Under Turkey’s trade regulations, KKDF is applied within certain rules and regulations. Importers and credit recipients must act in accordance with the law and ensure timely payment of KKDF. Below are some considerations under Turkey’s trade regulations:
Customs Declaration and KKDF:
Correct calculation of KKDF must be made when filling out customs declarations for import transactions. Incorrect declarations may lead to penalties and late payment interest.
Tax and Duty Payments:
KKDF, like other import taxes and duties, must be paid regularly. Failure to fulfill payment obligations may result in administrative fines.
Documentation and Accounting:
KKDF deductions and payments must be accurately reflected in business accounting records. This is important for both legal compliance and financial auditing purposes.
KKDF Exemptions and Exceptions:
In some cases, certain transactions may be exempt from KKDF or eligible for exceptions. For instance, Eximbank loans and specific public projects may fall under this category. Relevant regulations and provisions should be reviewed for such exemptions.
KKDF (Resource Utilization Support Fund) is a significant fund deduction applied to financial transactions in Turkey. Applied in various areas such as deferred imports, credit operations, and leasing, KKDF is utilized to support economic stability and optimize resource utilization. According to Turkey’s trade regulations, it is crucial to make accurate and timely KKDF payments. Businesses need to exercise caution and comply with the law to conduct trade transactions smoothly and continue their economic activities.
