All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Turkey: The effect of Turkey’s G20 presidency on the G20/OECD BEPS project

bicer.jpg

erginay.jpg

Ramazan Biçer


Mehmet Erginay

G20 events in Turkey

Turkey has been hosting G20 events since its presidency of the group began on December 1 2014. The G20 leaders' summit will be held in Antalya, the most attractive touristic destination of Turkey, on November 15-16 2015. We expect that BEPS related issues will continue to be hottest topics on the international tax agenda during the Turkish G20 presidency.

Automatic exchange of information (AEoI)

G20 finance ministers and Central Bank governors held a meeting on February 9-10 2015 in Istanbul. One of the most solid deliverables of the meeting is the commitment to complete necessary legislative procedures to begin AEoI within the previously agreed timeframe.

The OECD, in this regard, held a regional meeting of Eurasia in Ankara on March 4-5 2015 and AEoI was discussed in depth as it is highly important for the implementation of BEPS deliverables. According to Turkish tax authorities, Turkey is now drafting legislation on AEoI and will commence a pilot project in 2016 to meet its 2018 commitments in this area.

International Tax Symposium (ITS)

Turkey will also host G20 ITS on May 6-8 in Istanbul. Without doubt, the focal point of this meeting will be the 2015 developments and deliverables of the BEPS project. We believe that the effect of the BEPS project on the developing countries will be separately evaluated by the participants.

Therefore, it is expected that transfer pricing issues including the lack of comparables, the pricing of commodity transactions and treatment of intra-group services from the perspective of developing countries will be addressed by developing countries. Toolkits for the application of the BEPS measures by developing countries are also likely to be discussed during the symposium.

Turkey's role

These examples show that Turkey is acting as a voice of developing countries in the context of the G20/OECD BEPS project because developing countries have different priorities from BEPS deliverables than developed countries. Turkey also has such priorities and we anticipate that the BEPS Action Plan will bring a different outcome in its tax laws.

For the time being, as in many developing countries, the awareness of the G20/OECD BEPS project by the public and business community in Turkey is limited. Nevertheless, we believe that Turkey's G20 presidency will have a considerable impact both on the developing countries and on Turkish tax legislation. This also might bring in different work tailored for the developing countries.

Turkey, as the G20 chair in 2015, is monitoring the BEPS work which affects both developing and developed countries and shares its approach by delivering key notes to OECD member state tax authorities.

In this respect Turkey, a developing country, is focusing on the BEPS issues also from the developing countries' perspective and encouraging BEPS relevant priorities of developing countries to be rightly addressed in the BEPS deliverables.

Some conflicts may arise among developing countries and developed countries. However the work conducted within the G20/OECD BEPS project should satisfy all parties and we believe that Turkey is the right candidate to address such controversies.

Ramazan Biçer (ramazan.bicer@tr.pwc.com) and Mehmet Erginay (mehmet.erginay@tr.pwc.com), Istanbul, Turkey

PwC

Tel: + 90 212 3266675

Fax: + 90 212 3266050

Website: www.pwc.com.tr

more across site & bottom lb ros

More from across our site

The Biden administration is about to give $80 billion to the Internal Revenue Service to enhance the tax authority’s enforcement processes and IT systems.
Audi, Porsche, and Kia say their US clients will face higher prices under the Inflation Reduction Act after the legislation axes an important tax credit for electric vehicle production.
This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
Tax directors have called on companies to better secure their data as they generate ever-increasing amounts of information due to greater government scrutiny.
Incoming amendments to the treaty could increase costs on non-resident Indian service providers.
Experts say the proposed minimum tax does not align with the OECD’s pillar two regime and risks other countries pulling out.
The Malawian government has targeted US gemstone miner Columbia Gem House, while Amgen has successfully consolidated two separate tax disputes with the Internal Revenue Service.
ITR's latest quarterly PDF is now live, leading on the rise of tax technology.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree