Procedures and Principles of the Asset Peace Determined

The General Communiqué on the procedures and principles of the new asset peace regulation introduced by the provisional Article 15 added to the Corporate Tax Law with Law No. 7417 has been published.

⎯ It is possible to declare cash, gold, foreign currency, securities, and other capital market instruments held abroad to banks or intermediary institutions in Turkey by 31/3/2023, within the framework of the provisions of the article.

⎯ For real and legal persons, a single declaration for assets held abroad is essential. However, since each month in which the declaration is made is considered a different taxation period in the application of the article, it is possible to make more than one declaration until 31/3/2023 (including this date).

⎯ Assets subject to declaration within the scope of the article must be brought to Turkey within three months from the date of declaration or transferred to an existing or newly opened account at banks or intermediary institutions in Turkey.

⎯ It is possible to bring assets held abroad that are not within the scope (e.g., real estate) to Turkey within the framework of the provisions of the said article by converting them into assets within the scope by 31/3/2023.

⎯ Banks and intermediary institutions will declare, as tax responsible persons, the tax they collect in advance from the declarant on the value of the declared assets, at a rate of 1% for declarations made until 30/9/2022, 2% for declarations made between 1/10/2022 and 31/12/2022 (including this date), and 3% for declarations made until 31/3/2023 (including this date), by the evening of the fifteenth day of the month following the declaration.

 ⎯ If assets held abroad and subject to declaration within the scope of the article are kept in accounts in banks or intermediary institutions in Turkey for at least one year from the date of transfer to these accounts or from the date they are brought from abroad and deposited into these accounts, the tax rate to be applied within the scope of the article on the value of the declared assets will be considered as 0%. In this case, taxes collected by banks and intermediary institutions and paid to the tax office as tax responsible persons will be refunded to the relevant party upon application to the tax office within the statute of limitations for correction.

 ⎯ Cash, gold, foreign currency, securities, and other capital market instruments, as well as real estate, owned by income or corporate taxpayers and located in Turkey but not recorded in the statutory books, can be declared directly to the tax office to which they are affiliated in terms of income or corporate tax by 31/3/2023 (including this date), or can be declared electronically in accordance with the procedures and principles specified in the General Communiqué of the Tax Procedure Law No. 340. A tax at a rate of 3% will be assessed by the tax offices on the value of the assets declared to the tax offices. The tax calculated in this way will be paid by the end of the month following the month in which the assessment is made.