Month-on-month comparison

Consumer prices in March increased by 0.1%, month-on-month. In ‘food and non-alcoholic beverages’, especially prices of vegetables increased by 5.0%, pork by 2.2%, non-alcoholic beverages by 1.2% and UHT semi-skimmed milk by 6.0%. In ‘restaurants and hotels’, prices of catering services were higher by 0.9% and accommodation services by 2.5%. Price growth in ‘miscellaneous goods and services’ came mainly from higher prices of social care by 3.1%. In ‘clothing and footwear’, prices of garments were higher by 1.4%.

Month-on-month overall consumer price level decrease in March came from price drop in ‘housing, water, electricity, gas and other fuels’, where prices of natural gas were lower by 1.4%. In ‘recreation and culture’, prices of package holidays were lower by 4.5% due to the ending winter season. Price decline in ‘transport’ came mainly from lower prices of fuels and lubricants for personal transport equipment by 1.8%. In food, prices of eggs were lower by 9.9%, butter by 6.3% and cheese and curd by 1.1%, in particular.

Prices of goods in total went up by 0.1% and prices of services by 0.3%.

Year-on-year comparison

“Consumer prices moderated their year-on-year growth for second consecutive time. It amounted to 15% in March, which was the lowest value from the last April. However, most of this slowdown came from development of the last year higher comparative base. Prices in transport even fell year-on-year, mainly due to decreasing prices of fuels” noted Pavla Sediva, head of Consumer Price Statistics Unit of CZSO.

Consumer prices increased by 15.0% in March, i.e. 1.7 percentage points down on February. This slowdown¹⁾ of year-on-year price growth was mainly influenced by prices in ‘transport’ and in ‘housing, water, electricity, gas and other fuels’. In ‘transport’, prices of fuels and lubricants for personal transport equipment turned from growth by 0.4% in February into decrease by 19.0% in March. In ‘housing, water, electricity, gas and other fuels’, prices of natural gas moderated their growth to 60.0% (increase by 74.3% in February). Both partly due to their month-on-month increase in March 2022.

The biggest influence on the growth of the year-on-year price level in March came again from prices in ‘housing, water, electricity, gas and other fuels’, where besides owner occupied housing costs, also prices of actual rentals²⁾ increased by 6.7%, materials and services for maintenance and repair of the dwelling by 16.4%, water supply by 16.3%, sewage collection by 30.3%, electricity by 29.6%, solid fuels by 53.7% and heat and hot water by 44.6%. Next in order of influence were prices in ‘food and non-alcoholic beverages’, where mainly prices of rice were higher by 32.9%, flour by 32.6%, pork by 34.0%, UHT semi-skimmed milk by 45.2%, eggs by 75.5%, margarine and other vegetable fats by 36.3%, vegetables by 29.9% and sugar by 97.6%. In ‘restaurants and hotels’, prices of catering services increased by 21.5% and accommodation services by 19.1%. In ‘recreation and culture’, prices of package holidays increased by 24.6%. Year-on-year price level decrease came from prices in ‘transport’ in March (drop by 0.6%).

Owner occupied housing costs (imputed rentals) were higher by 6.8% (increase by 7.7% in February) mainly due to the growth of prices of construction materials. The overall consumer price index excluding owner occupied housing costs was 116.1%, year-on-year.

Prices of goods in total and services went up (17.0% and 11.7%, respectively).

Inflation rate, i.e. the increase in the average consumer price index in the twelve months to March 2023 compared with the average CPI in the previous twelve months, amounted to 16.4% (16.2% in February).

Level of consumer price base index with base period the average of 2015 = 100, increased to 147.5% in March (147.3% in February).

Harmonized index of consumer prices (HICP)

According to preliminary calculations, the HICP in Czechia in March went up by 0.3% month-on-month and 16.5% (18.4% in February), year-on-year. According to flash estimates of Eurostat, the MUICP (Monetary Union Index of Consumer Prices) in March 2023 amounted to 6.9% year-on-year (8.5% in February), 14.8% in Slovakia and 7.8% in Germany. It was the highest in Latvia in March (17.3%). According to preliminary data of Eurostat, the year-on-year change in the average harmonized index of consumer prices (HICP) in the EU27 member states amounted to 9.9% in February (0.1 percentage points down on January). In February, the rise in prices was the highest in Hungary (25.8%) and the lowest in Luxembourg (4.8%).

Source: Czech Statistical Office
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

The proportion of employed persons in the number of all persons aged 15–64 years reached 75.3% in January 2023. It increased by 0,4 percentage point (p.p.) compared to that in January 2022. The male employment rate was 81.6%; the female employment rate was 68,8%. The employment rate of persons aged 15–29 years was 44,3%, in the age group of 30–49 years it was 88,4%, and in the age group of 50–64 years it was 80,2%.

The general unemployment rate

The percentage of the unemployed in the labour force, that is in the total number of the employed and the unemployed (that means economically active persons), reached 2.6% in January 2023. It increased by 0.2 percentage point, year-on-year. The male unemployment rate reached 2,3%; the female unemployment rate reached 3,1%.

“In South European countries such as Greece, Spain, or Italy, male unemployment rates use to be typically lower than female unemployment rates. In Czechia, the situation is similar, females face a significantly higher risk of unemployment than males. During the whole period of the Labour Force Sample Survey taking place, i.e. since 1993, the female unemployment rate has been nearly by a half higher, on average; there has not been any period with the female unemployment rate lower than the male unemployment rate, yet,” Dalibor Holý, Director of the Labour Market and Equal Opportunities Statistics Department of the Czech Statistical Office, comments on the results.

The economic activity rate

The percentage of the economically active in the total number of persons aged 15–64 years reached 77.4%. It increased by 0.6 p. p. compared to that in January 2022. The male economic activity rate (83.5%) exceeded the female economic activity rate (71.0%) by 12.5 p. p.

International comparability

All data presented in the News Release are seasonally adjusted. They apply to the age group of 15–64 years. They come from the Labour Force Sample Survey (LFSS) carried out by a network of interviewers of the CZSO in households and are different in terms of methodology from administrative data of the Labour Office of the Czech Republic on registered job applicants (namely the “Share of unemployed persons” indicator).

The LFSS has an internationally comparable methodology, which defines the employed and the unemployed in accordance with recommendations of the International Labour Organization. The CZSO regularly sends data from the LFSS to Eurostat, which prepares monthly press release on unemployment as for Member States of the EU, however, for the age group of 15–74 years. The unemployment rate in that age group (of the aged 15–74 years) was 2.5% in the Czech Republic in January 2023.

In compliance with the international methodology for the LFSS, the survey is only carried out in private households; collective accommodation establishments as well as temporary shelters are not covered. Due to those reasons, coming of war refugees from the Ukraine will, for the time being, be reflected only marginally in the trends.

Tables 1 and 2 enclosed contain methodologically consistent time series of basic indicators of the labour market and numbers of the employed and unemployed persons, starting in 1993.

Source: Czech Statistical Office
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

However, the provisions on healthcare insurance in the agreements signed between Azerbaijan and Albania cannot be implemented due to the reasons stemming from their legislations.

Which persons can receive healthcare services abroad according to the social security agreements?
Unless otherwise provided in the agreement on social security, the following persons have the right to receive healthcare benefits on behalf of our Institution;

1. Insured persons (banks, insurance and reassurance companies, chambers of commerce, chambers of industry, stock markets and the workers employed in the unions constituted by them) under the scope of letter (a) of the first paragraph of Article 4 of the Law No. 5510 and of transitional Article 20 of the Law No. 506 and their dependent family members. Of the persons specified in this scope, the following can receive healthcare benefits while staying or residing in a foreign country:

• Insured persons temporarily posted to a foreign country,
• Persons who are permanently posted to a foreign country and their dependent family members,,
• Dependent family members of the insured and retired persons staying abroad for educational reasons,,
• Insured and retired persons staying abroad for touristic purposes and their dependent family members,,
• Dependent family members of the insured persons who are permanently residing abroad and retired persons and their dependent family members,,
• Members of universal health insurance who are sent to another country for treatment and their dependent family members.,

2. Apart from this; according to the legislation of our Institution, the following persons can avail themselves from the right to receive healthcare benefits provided by our Institution under the scope of universal health insurance on behalf of the contracted countries;

• For temporary stay; all the persons registered on the document (formulary) of right to healthcare benefits, only in cases of emergency,
• For permanent residence; persons specified in the social security agreements.

In this context, in order to receive healthcare benefits in our country, respective persons are required to be an insured member of universal health insurance or dependent of the insured in question.

Conditions for Receiving Healthcare Benefits for the Persons Having Foreign Insurance
Persons having foreign insurance, who either temporarily stay or permanently reside in our country, are required to get a formulary from the institution to which they are registered and submit it to the Departments of Foreign Services operating within the scope of Social Security Provincial Directorates/Social Security Centers in their place of stay or residence; or to the Social Security Centers designated by Social Security Provincial Directorates.

Through the Document of Healthcare Benefits under Social Security Agreement, they can avail themselves from right to healthcare benefits in contracted health facilities, like other insured members of universal health insurance, free of charge excluding the rates of contribution and share which have to be paid legally by the insured himself/herself.

In cases of emergency, the insured persons, coming from countries with whom a social security agreement including healthcare insurance applications has been concluded and who are temporarily staying in our country, can receive the formulary for the right to healthcare services from the “Department of Foreign Services” in their place of stay in Turkey by submitting the document issued by the social security institution in their country. Besides, these documents can be confirmed through Social Security Centers designated by Social Security Provincial Directorates.

Benefiting from Emergency Healthcare Services for the People Having Foreign Insurance
In order to receive healthcare services, foreign insured people are required to make an application to the contracted health facilities of the Ministry of Health or to the private or training health facilities with the “Document of Healthcare Benefits under Social Security Agreement.”
Only through the referral of our contracted units, services can be provided from the non-contracted health facilities. When a person applies directly to a non-contracted health facility, regardless of this regulation, his/her expenses of treatment can be covered by the Institution on condition that it is an emergency situation.

Whether the treatment is an emergency or not is determined through the inspection of the relevant submitted medical documents by the contracted health facilities.

In such a case, the insured person shall apply to the Social Security Provincial Directorate/Social Security Center together with the reports regarding his/her treatment and invoices if he/she has made the payment. If the treatment is accepted as an emergency, a reimbursement shall be made to the insured in accordance with the provisions set forth in Medical Enforcement Declaration (SUT).

Duration of Benefiting from Healthcare Services for Foreign Insured People who are Temporarily Staying in our Country and Determination of the Family Members to Receive Healthcare Benefits
People, who are temporarily staying in our country, have the right to healthcare benefits for the period specified in the documents that they brought with them. For temporary stay, people to receive healthcare benefits are determined according to the legislation of the country issuing the document.

In case healthcare benefit is needed after the expiration of the document;

• A new document for treatment period shall be requested from the contracted country by applying to the relevant unit of the Institution.
• Insured person shall directly contact with the insurance institution of the country to which he/she is subject and request a new document for treatment period. The healthcare services provided meanwhile have to be paid for.
• After the document for the extension of the period is received from the contracted country, a “Document of Healthcare Benefits under Social Security Agreement” shall be issued retrospectively and the expenses shall be reimbursed to the respective people pursuant to the provisions of Medical Enforcement Declaration (SUT).

Duration of Benefiting from Healthcare Services for Foreign Retired People who are Permanently Residing in our Country and Determination of the Family Members to Receive Healthcare Benefits
People, who are permanently residing in our country, have the right to receive healthcare benefits for the period specified in the documents issued by the institutions of the contracted countries until a notification regarding the termination of the right to healthcare benefits is received.

For the permanent residences, the people to receive healthcare benefits subject to the agreement.

In our agreements with Germany, Netherlands, Belgium, France, Czech Republic, T.R.N.C., Luxemburg and Croatia, family members are determined pursuant to the legislation of our Institution; while in our agreements with Macedonia, Romania, Azerbaijan, Bosnia-Herzegovina and Albania they are determined according to the legislation of the relevant country.

Documents of right to healthcare benefits in cases of permanent residence are sent to our Institution by the insurance institutions of contracted countries either for a long time or without specifying the date of termination of the right.

However, the rights of foreign insured people in order to receive healthcare benefits are sometimes terminated by the relevant sickness funds for various reasons.

For the purpose of checking whether foreign insured people’s rights to healthcare benefits are continuing or not, the mentioned documents are issued in every six months’ period and given to the relevant persons.

Where the Costs of Treatment can be reimbursed by Foreign Insured Persons who pay for Their Treatment without a Document of Right to Healthcare Benefits?
Foreign insured persons who pay for their treatment in our country without obtaining the document (formulary) for receiving healthcare benefits from the insurance institution to which he/she is registered shall keep their reports and invoices regarding the treatment. After returning to his/her country to which he/she is registered, he/she shall request a reimbursement by submitting the relevant reports and invoices indicating the healthcare expenses to the institution to which he/she is affiliated. In this case, if it is set forth in the agreement, the insurance institution receiving the application shall request information from our Institution on the specified cost of the treatment provided in our country by sending the relevant reports and invoices. Following the receipt of the notification on the specified cost of that treatment, institution shall reimburse the notified amount to relevant person.

Who can Receive Healthcare Benefits in Germany in Accordance with the Social Security Agreement between Germany and our Country?
Only our workers and retired workers were to avail themselves of the healthcare provisions of the Social Security Agreement signed with Germany.

By way of reaching a consensus with German liaison body, craftsmen and civil servants and people who are retired in this context and also their dependants are covered by the healthcare provisions of the Social Security Agreement between Turkey and Germany.

As a result of this regulation, all the insured and retired persons and their dependants going to Germany, have the opportunity to avail themselves of healthcare benefits.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

The EU28 unemployment rate was 8.0% in March 2017, down from 8.1% in February 2017 and from 8.7% in March 2016. This remains the lowest rate recorded in the EU28 since January 2009. These figures are published by Eurostat, the statistical office of the European Union.

Among the Member States, the lowest unemployment rates in March 2017 were recorded in the Czech Republic (3.2%), Germany (3.9%) and Malta (4.1%). The highest unemployment rates were observed in Greece (23.5% in January 2017) and Spain (18.2%).

Source: Eurostat

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

• to encourage FDI in the country
• to protect the rights of investors
• to align the definitions of an investor and investment with international standards
• to establish a notification-based system rather than an approval-based one for FDI
• to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

• freedom to invest,
• national treatment,
• expropriation and nationalization,
• freedom of transfer,
• national and international arbitration and alternative dispute settlement methods,
• valuation of non-cash capital,
• employment of foreign personnel,
• liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

• to regulate the work carried out by foreigners
• to stipulate the provisions and rules on work permits given to foreigners

  2. Bilateral Agreements
  2.a. Bilateral Agreements for the Promotion and Protection of Investments
  Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.