19August2022

The Procedures and Principles of Asset Repatriation Law No. 7417

With the Law No. 7417 (In Turkish) published in the Official Gazette dated 05.07.2022 and numbered 31887, a new asset repatriation regulation has been added to the Corporate Tax Law (In Turkish) with a temporary article 15, and the details on the regulation have been shared in our article dated 13.07.2022.

Regarding the new regulation, a GENERAL COMMUNIQUE (SERIAL NO: 1) published in the Official Gazette dated 09.08.2022 and numbered 31887. With this Communique, the procedures and explanations has been shared.

The explanations can be summarized as below:

It would be possible to declare cash, gold, foreign currency, movable assets and other capital market instruments to the banks in Türkiye until 31.03.2023.
The main rule is to submit one declaration for the assets abroad. However, until 31.03.2023, it would be possible to make declarations more than one.
For the assets abroad and not located within the scope (like immovables), it would be possible to convert it to the assets under this Law and bring it to Türkiye until 31.03.2023.
The declared assets would need to be brought to Türkiye within 3 months upon declaration or transferred to the related bank accounts in Türkiye.
Banks, as a tax declaration responsible, will declare the assets that are declared to them to the tax office with the tax rate of 1% for the declarations until 30.09.2022, with the tax rate of 2% for the declarations between 01.10.2022 - 31.12.2022 and with the tax rate of 3% for the declarations until 31.03.2023.
If the assets abroad declared or transferred to the banks in Türkiye are kept in the accounts for 1 year, the tax rate applicable on these assets would be 0%. Based on that the taxes declared by banks can be requested back within the amendment period.
The assets in Türkiye and belongs to the income and corporate taxpayers, however, not recorded on the legal books, would need to be declared to the tax office until 31.03.2023 by visiting the tax office or by using the online portal. There would be a tax rate of 3% on these assets declared to the tax office and the related tax would need to be paid until the end of following month.

You can reach the related Official Gazette via that link. (In Turkish)

Should you have any queries or need further details, please contact your customer representative.

Author Selma Kıy, Category Taxation Law

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