Law numbered 6486 was promulgated in the Official Gazette No.
28661 dated May 29, 2013 ("Wealth Amnesty Law").
Provisional Article 85 was added to the Income Tax Law (Law No.
193) (published in the Official Gazette dated January 6, 1961 and
No. 10700) together with Article 13 of Law No. 6486 which regulates
the wealth amnesty, came into force in May 29, 2013.
Turkey's new Wealth Amnesty Law encourages Turkish taxpayers
to transfer certain assets (see below) to Turkey. According to the
new regulation, assets outside Turkey which have been in possession
of taxpayers as of April 15, 2013, can be transferred to Turkey. To
benefit from the provisions of the Wealth Amnesty Law, the assets
should be reported to banks or brokerage houses in Turkey or
declared the tax offices with their market values in Turkish lira
by July 31, 2013.
Other capital market instruments,
The above assets are to be registered in the legal books of the
taxpayers holding the commercial books in accordance with the Tax
Procedural Law (Law No. 213) (published in the Official Gazette
dated January 10, 1961 and No. 10703) (the "TPL") by the
end of the month following the one in which the declaration is
made. Such assets will not be recorded as income, but a special
fund account will be created under the equity section of the
balance sheet which will be part of the equity. The amount recorded
in the special fund account cannot be used for purposes other than
increasing capital. Such fund will not be taxed should the
corporation be liquidated.
A 2% tax will be assessed over the market value of assets
reported/declared. If such assets are declared to the tax offices,
tax payments are to be made by the taxpayers by the end of the
month following the one in which the tax assessment is made. If
such assets are reported to banks or brokerage houses, those banks
or brokerage houses are liable to declare and pay the 2% tax to the
tax authority by the 15th of the month following the one in which
the assets are reported to the banks or the brokerage houses.
The tax to be paid in the scope of the Wealth Amnesty Law
cannot be regarded as deductible expense in terms of tax
There cannot be a tax examination or tax assessment of the
assets declared in accordance with the Wealth Amnesty Law.
Amortization provisions of the TPL will not be applicable to the
declared assets. The losses incurred due to the disposal of such
assets shall not be regarded as an expense or deduction from the
tax base in the calculation of the income or corporation taxes.
If the presence of assets located in foreign countries cannot be
supported by a reasonable documentation as of April 15, 2013, the
declared assets will not benefit from the provisions and will be
subject to a tax examination and assessments.
In addition to the above, if the declared assets will not
transferred to Turkey or deposited into the accounts opened in the
banks or the brokerage houses by the end of the month following the
one in which they are declared, the declared assets will not
benefit from the provision and will be subject to tax examination
Apart from the above stated regime, the below income, derived
outside Turkey by October 31, 2013 by real and legal persons with
full tax liability, will be exempt from income and corporation tax;
in the event that such income is transferred to Turkey by December
Income from the sale of participation shares of institutions
registered or with a business head offices outside Turkey;
Income from institutions of registered or business head offices
Business (commercial) income from permanent establishments or
permanent representatives outside Turkey.
In addition, income, gained by real and legal persons, who have
full tax liability, through the liquidation of foreign companies,
with registered or business head offices outside Turkey, will be
exempt from income and corporation tax providing that such income
is transferred to Turkey by December 31, 2013.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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