The power to change the commission rates of Law No. 195 is granted in the Law itself. The 1961 Council of Ministers Decision is one of the first exercises of that power.
The Details of the Decision
| Field | Information |
|---|---|
| Decision date | 15.10.1961 |
| Decision number | 5/1807 |
| Official Gazette date | 31.10.1961 |
| Official Gazette number | 10945 |
| Legal basis | The last paragraph of Article 24 of Law No. 195 |
| Proposal | The letter of the Directorate General of 20.9.1961, No. 2077, based on the proposal of the General Assembly of the Agency |
The Text of the Decision
It was decided by the Council of Ministers on 15.10.1961, under the last paragraph of Article 24 of the said Law, upon the letter of the Directorate General of 20.9.1961, No. 2077, based on the proposal of the General Assembly of the Press Advertisement Agency, that the following rates written in the first paragraph of Article 24 of Law No. 195 of 2/1/1961 on the Establishment of the Press Advertisement Agency be changed to at most 25%:
- a) the 15% commission fee rate, for the announcements and advertisements that natural and legal persons in foreign countries will give to newspapers and magazines published in places where the Agency has a branch,
- b) the 10% commission fee rate relating to other announcements and advertisements.
| Sub-para. | Which announcement | Statutory rate | Under the decision |
|---|---|---|---|
| a | The announcements and advertisements that natural and legal persons in foreign countries will give to newspapers and magazines published in places where the Agency has a branch | 15% | At most 25% |
| b | Other announcements and advertisements | 10% | At most 25% |
The Basis: Law 195, Art. 24
A commission fee of 15% on the announcements and advertisements it is the duty of the Agency to intermediate in publishing, and of at most 10% on other announcements and advertisements, is deducted over the invoices and recorded as revenue of the Agency.
(Amended: 4/7/1988-Decree-Law-336/1; accepted as is: 7/2/1990-3612/41) — The General Assembly is empowered to reduce down to 10% the 15% commission fee to be taken from newspapers whose owners participate in the administration of the Agency. These rates may be changed on the proposal of the General Assembly and with the approval of the President.
The Rate in Force — Regulation Art. 116
The commission rate to be applied to official announcements and advertisements and to private announcements and advertisements is 15%.
The Effect of the Commission on the Invoice — Regulation Art. 27
Newspapers and internet news sites are obliged to draw up an invoice, for the official announcements they publish, over the amount remaining after the commission of the Agency has been deducted from the amount calculated according to the principles and measures stated in the Official Announcement Price Tariff, and all periodicals likewise for private announcements and advertisements according to the amount calculated over the tariffs they themselves determine. We covered the detail in how the official announcement invoice is drawn up.
Do Not Confuse It with the Broker Commission — Law 195, Art. 44
Announcement and advertising brokers work by way of commission agency. They act on the basis of the invoices of those giving the private announcement or advertisement and of the newspapers, and may not take more than 25% commission.
| Commission | Who takes it | Rate | Basis |
|---|---|---|---|
| Agency commission | The Press Advertisement Agency | 15% (Regulation Art. 116) | Law 195, Art. 24 |
| Broker commission | The announcement and advertising broker | At most 25% | Law 195, Art. 44 |
| Dealer commission | The newspaper dealer | At most 40% together with the subscription discount | Regulation Art. 43/2 |
We covered brokerage in what announcement and advertising brokerage is and the dealer commission in whether the sale price of a newspaper is free.
Its Place Among the Revenues of the Agency — Law 195, Art. 17
The revenues of the Agency: the revenues to be obtained from the operation of the capital, the commissions to be taken from announcements and advertisements, the other revenues the Agency will obtain while performing its duties, and donations. We covered the detail in the revenues and commission fee of the Agency.
Conclusion
The Council of Ministers Decision of 15.10.1961, No. 5/1807, decided that the 15% commission rate relating to the announcements of natural and legal persons in foreign countries and the 10% rate relating to other announcements and advertisements, in the first paragraph of Article 24 of Law No. 195, be changed to at most 25%. The decision was taken under the last paragraph of Article 24 of the Law, upon the letter of the Directorate General of 20.9.1961 based on the proposal of the General Assembly. The rate applied today is 15%, under Art. 116 of the Regulation.