Seven tips that you should know about the new tax amnesty prepared by Turkey
The Turkish government is completing in its parliament a tax amnesty to attract assets
Turkey in the last years is conducting an adaptation process to international common standards on transparency in the international automatic exchange tax information field.
In this regard, the Turkish government submitted to its parliament a draft law to enhance the investment climate last June. Its key measure is to announce a tax amnesty on undeclared assets abroad for Turkish residents.
In such a way, on this first stage, taxpayers will be allowed to declare their assets abroad tax free. What are this Turkish government’s new draft law’s key points?
- Legal entities and real persons that are residing in Turkey should notify their banks or banking intermediaries their assets abroad by before 31st December 2016.
- They should declare their receivables and immovable goods’ fair value to the tax authorities by before 31st December 2016.
- These goods will not be investigated, prosecuted nor audited by the tax authorities
- These goods’ use to adding them to a business’ social capital or to paying debts will be subject the companies’ discretion
- These declared goods will not be taxed by the corporate tax neither will be computed by that tax’ calculation.
- Neither do they by the inheritance tax
- To take advantage of this tax amnesty, taxpayers should declare their goods one month after receiving a notification and, in any case, by before 31st December 2016. In the case of receivables and immovable properties, their correspondent value in Turkey in Turkish lira or foreign currency should be brought to Turkey within a year after declaration date.
As a consequence, without any doubt, this measure can be framed in a context where the Syrian crisis are affecting Ankara and the negotiations with the EU are at low and, with it is aimed to attract funds.
Del Canto Chambers’ Newsroom