The Law regarding ‘’The Restructuring of Certain Receivables’’ – also known as Tax Amnesty, which also includes the restructuring of public receivables in many various tax types, has come into effect with the publishing of Official Gazette dated 19th of August 2016. In this framework, we will review the details of this law along with the notification published by Ministry of Finance on 23rd of August 2016.

A ) Income Tax Exempted Severance Pay

According to the circular numbered 27998389-010-06-02-6152 released by the General Directorate of Budget and Fiscal Control on 07.01.2016 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective 01.07.2016.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2016 – 31.12.2016;

1. Maximum severance pay to be exempted from income tax is 4.297,21.- TL,

Every year until the end of May, Tax Plates must be registered according to the Tax Procedure Law.

After the approval of Income and Corporate Tax Declaration form in April, the IT department of Revenue Administration will upload the Tax Plates based on the data from 2015. The current Tax Plates which are uploaded into the system from Administration of Revenue must be approved until the end of May.

Every foreign capital company operating in Türkiye and corporation with a liaison office in Türkiye has to file a notification of activity in addition to other requested documents by submitting them to the Ministry of Economy either by hand or by return receipt requested mail each year, until the end of May.

ACTIVITY INFORMATION FORM FOR FOREIGN DIRECT INVESTMENTS

INFORMATION FORM REGARDING THE ACTIVITIES OF THE LIAISON OFFICES