What is BSMV (Banking and Insurance Transactions Tax)?
BSMV is Türkiye’s transaction tax on banks, insurers and other financial institutions under the Expenditure Taxes Law No. 6802: it is charged on the money they collect in their favour — interest, fees, commissions and premiums — instead of VAT, because financial transactions are outside the KDV system. The cost is routinely passed on to customers, so every loan, card fee or policy in Türkiye quietly carries BSMV.
Rates and base
The general rate is 5% on interest, commissions and service fees; 1% applies to interbank deposit interest and certain money-market transactions; foreign-exchange sales carry a separate, periodically adjusted rate set by Presidential decision. The tax base is the gross amount received in the institution’s favour — no input-credit mechanism exists, which is why BSMV, unlike VAT, cascades.
Why fintechs care
Scope follows the nature of the institution and transaction: banks and insurers are always in; licensed lenders (factoring, leasing, financing companies) are in for their core transactions; payment and e-money institutions’ fee income has been treated as BSMV-liable in practice. A fintech pricing model that ignores 5% BSMV on fee income misstates unit economics — and a BaaS partnership must allocate who bears it contractually.
Is BSMV charged on top of KDV?
No — a transaction is subject to either KDV or BSMV, never both. Financial transactions within Law 6802 are KDV-exempt.
Do startups outside finance ever meet BSMV?
Yes: on every bank loan they take (the bank passes the 5% on interest through) and in venture debt term sheets, where all-in cost should be modelled BSMV-inclusive.
Related: KDV (VAT).