Turkey has declared several tax amnesties over the last
decade to collect more revenues. In August 2016, Turkey again
introduced another tax amnesty law that principally
restructured defined tax debts and certain public
Under the law, the scope of the restructuring programme for
public receivables generally contained taxes (e.g. individual
income tax, corporate income tax, VAT, special consumption
tax), levies and charges including penalties, default interest
and late payment interest regulated under the Turkish Tax
Procedures Code and assessed before July 30 2016.
There were also other public receivables (e.g.
administrative fines) and their late payment interest within
the scope of this latest tax amnesty.
In addition, the tax amnesty law contains the repatriation
of foreign assets (cash, gold, foreign exchange, securities,
and other capital market instruments) owned by Turkish
Previous tax amnesty laws required taxpayers to pay a
certain amount of taxes. This time, the law does not impose any
tax burdens and allows taxpayers to unconditionally repatriate
How to repatriate foreign assets
Foreign assets can be transferred to a new or existing
account in a bank or intermediary institution based in Turkey,
or the assets can be physically brought to Turkey.
Notification of securities and other capital market
instruments to banks or intermediary institutions by a taxpayer
or another authorised person will be sufficient for the
authorities to accept that such securities have been
repatriated. This means that it is not necessary to physically
bring the foreign assets to Turkey.
Proof for foreign assets repatriation
A bank receipt or intermediary institution transaction form
may be used to indicate that assets have been brought to
Turkey. A special form will be used when the foreign assets are
repatriated or the securities and other capital market
instruments are notified to banks or intermediary
No tax assessment and investigation
If Turkish taxpayers choose to repatriate foreign assets,
they will not be investigated and there will be no tax
assessments, and no tax penalties or administrative fines will
be applied. That means that there will be no retrospective tax
examination or any other type of tax assessment.
In the event that the person repatriating the assets is a
legal person, no tax investigation or prosecution will be
carried out with the legal representatives, partners and
deputies of the legal entity.
Last chance before AEOI
The Turkish cabinet used its authority and recently extended
the due date of application for tax free repatriation of
foreign assets. Accordingly, Turkish taxpayers may apply for
the repatriation programme until June 30 2017.
As Turkey has committed to the introduction of automatic
exchange of information (AEOI) by 2018, this tax amnesty scheme
is a good opportunity for Turkish taxpayers.
Considering the introduction of the AEOI, additional tax
assessments for those who have not repatriated their foreign
assets may be possible in the upcoming years once it is in
force. Therefore, individuals and companies should repatriate
their assets now and benefit from the tax free scheme.
Therefore, their foreign assets will not be questioned and
investigated once the AEOI is applicable.
Burçin Gözlüklü (firstname.lastname@example.org)
and Ramazan Biçer (email@example.com)
Tel: +90 216 504 20 66 and +90 216 504 20 66