BRINGING THE ASSETS LOCATED ABROAD OR DOMESTICALLY BUT NOT INCLUDED IN THE RECORDS TO THE ECONOMY
1. TIME ALLOWED FOR NOTICE ABOUT PERFORMANCE ASSETS WHİCH ARE ABROAD OR IN TURKEY BUT DOESN’T EXIST IN LEGAL BOOK ENTRİES.
a. Money, gold, foreign currency, securities and other capital market instruments abroad must be reported until 30.06.2021 (including this date).
b. Income or corporate taxpayers owned and located in Turkey, but not included in the statutory records; Money, gold, foreign exchange, securities and other capital market instruments and immovables must also be notified until 30.06.2021 (including this date).
2. NOTIFICATION PROCEDURE REGARDING THE ASSETS LOCATED ABROAD
a. First of all, these notifications to be made by real and legal persons can also be made by authorized representatives or legal representatives. In this case, it will be checked whether the relevant representative is authorized in the power of attorney or in the representation contract according to the Communiqué.
b. Notice from the date of the assets will be subject to notification must be brought to Turkey within 3 months. Otherwise, it is not possible to benefit from the opportunities provided by Law No. 7256.
c. Real and legal persons may notify banks or intermediary institutions (exclusively for securities and other capital market instruments) with the form in Annex-1.
d. Real and legal persons will not make any notification to the tax offices regarding the said assets.
e. Two copies of the document in ANNEX-1 will be filled and delivered to the bank or intermediary institution. After the bank or intermediary institution completes the transactions, a copy will be returned to the person concerned, together with the bank receipts or transaction result forms. No document other than ANNEX-1 will be requested. Tax Offices will not request any documents from the Bank or intermediary institution regarding the issue.
3. USAGE OF ASSETS LOCATED ABROAD IN THE CLOSURE OF LOANS REGISTERED IN THE LEGAL BOOKS
a. It can be used to close the loans used from banks or financial institutions abroad and registered in the legal books as of 17.11.2020 until 30.06.2021 at the latest.
b. Book deducting the condition of the recording, the requirement being brought to Turkey for the property used for the payment of the debt shall be required.
c. Evidence / proof documents to be obtained from banks or financial institutions abroad regarding the closure of the loans should be kept in case of any doubtful situation.
4. COVERAGE BUT NOT ABROAD INTO THE ASSETS (EX. IMMOVABLES) 30/06/2021 ASSETS IN HISTORY TO THE EXTENT to CONVERTED to be the BROUGHT BY TURKEY IS POSSIBLE.
a. Methods brought to Turkey can be one of the following procedures;
· Physically, be brought to Turkey or to be transferred to an account opened in the bank or brokerage house in Turkey these assets, (in this case the evidences / documents proving: Bank Receipt or Transaction Broker Result Forms).
· If the procedure stated in the first paragraph is not working, it is the notification of securities and other capital market instruments to intermediary institutions. (Documents that certify / prove this situation: Documents Received from the Customs Administration Based on the Declaration / Notification).
5. STATEMENT OF ASSETS IN TURKEY THE PROCEDURE
a. Income or corporate taxpayers owned and located in Turkey, but not included in the statutory records; Money, gold, foreign exchange, securities and other capital market instruments and immovables can be notified electronically to the tax offices of the affiliated tax offices in terms of income or corporate tax with the notification in Annex-2 until 30.06.2021 (including this date).
b. Following the notification, the asset must be deposited with the bank or intermediary institution. The securities subject to notification must be deposited with banks or intermediary institutions and their assets must be proved and certified by documents that must be issued by banks and intermediary institutions.
6. CAN THE REPORTED IMMOVABLE BE REGISTERED WITH THE CAPITAL IN KIND?
a. The immovables declared within the scope of Provisional Article 93 can be registered as capital in kind, providing the following conditions.
· Capital increase decision has been taken as of the notification date,
· Registration of the decision in the trade registry by the end of the 10th month following the notification date.
7. COMMON PROVISIONS (FOREIGN & DOMESTIC ASSET NOTICE)
a. It is essential that real and legal persons give a single notification for assets located abroad or domestically. However, it is possible to make more than one notification with the aim of correction.
b. Assets that belong to the company or its shareholders but are saved by the legal representatives of the company, other than their partners or representatives, and also the assets that belong to real persons but are saved by companies abroad (provided that the real person is notified) It will be possible to bring them to the country by being notified.
c. Assets will be valued with the following valuation criteria as of the date of notification, both in reporting assets abroad to banks or brokerage houses and reporting domestic assets to tax offices:
· Money in Turkish Lira = Nominal Value.
· Gold = Market Value.
· Currency Buying Rate = Central Bank of the Republic of Turkey with the setup.
· In Securities and Other Capital Market Instruments;
o Share certificates = with their stock market value, if there is no stock market value, with their current value, if this price cannot be determined, with their purchase price, if the purchase price is not known, with their nominal value
o Borrowing instruments such as bonds, bills, and Eurobonds = with their stock exchange rate, if there is no stock market value, with their current value, if this value cannot be determined, with their purchase price, if the purchase price is not known, with their nominal value.
o Mutual fund participation shares = with the closing price determined in the relevant market.
o Derivative instruments such as futures and options contracts = with their stock market value, if there is no stock market value, with their current value, if this price cannot be determined, with their purchase price, if the purchase price is not known, with their nominal value.
o Immovables = at fair value.
d. In the corrections / changes to be made until 30.06.2021 in order to reduce the declarations of correction or the assets subject to the notification, the values of the assets on the first notification date are taken as basis.
8. TAX LIABILITIES DUE TO REPORTED ASSETS
a. Due to the assets notified in accordance with the provisional paragraph 93/7, no tax inspection and tax assessment will be made under the following conditions.
· From the date of the statement of assets located abroad, subject to notification to be brought to Turkey within 3 months or be transferred to an account opened in the bank or brokerage house in Turkey
· In Turkey and is subject to declaration of assets other than immovable property credited to the accounts shows that the bank or brokerage firm by submitting the document,
b. Provisions regarding depreciation in the Tax Procedure Law No. 213 shall not apply to immovables that are subjected to notification and transferred to the legal book records.
c. Losses arising from the subsequent disposal of these assets in the records will not be accepted as an expense or deduction in the determination of income or corporate income in terms of income or corporate tax application.
d. Income tax or corporation with assets brought to Turkey payers of legal books on the recorded assets, such period may be included in, regardless of operating in earnings determination, the taxable income the same assets and distributable earnings for the institution Notwithstanding the determination may be withdrawn from the business.
e. Taxpayers who keep books on the basis of balance sheet will open a special fund account in liabilities for the assets they have recorded in their legal books. The account in question can be freely subject to savings, added to the capital or distributed to partners. These assets kept in the fund account will not be subject to taxation.
f. Taxpayers who keep books on the basis of self-employment earnings book and business account will be able to show the said assets in their books separately.
g. After the necessary notifications are made in accordance with the legislation, in case of disposal of the assets that can be registered in the legal books with the determined Turkish lira equivalent, this price will be taken into account in the determination of the sales gain.
h. 17.11.2020 date, the statutory books in registered capital advance of, who are abroad money, gold, foreign exchange, before the date mentioned securities and other capital market instruments, if met by brought to Turkey, they shall be deducted from the registry of these advances, it will be possible to benefit from the opportunity of tax inspection and tax assessment.
Atty. Kerim ALTINTAŞ & Atty. Melis ERDİNÇ
- 2 December 2020 Wednesday