Grand National Assembly of Turkey convenes: First 5 articles of the bill including asset peace accepted

The Grand National Assembly of Turkey (TBMM) convened under the chairmanship of Deputy Speaker of the Parliament Pervin Buldan to discuss the 'Bill on Amendments to Certain Laws,' which also includes regulations regarding asset peace. Following non-agenda speeches, 1-minute speeches by deputies, evaluations by group deputy chairmen, and discussions on motions submitted to the TBMM Presidency by political party groups, the assembly moved on to the bill. As a result of the deliberations, the first 5 articles of the bill were accepted.

According to the accepted articles; an amendment is being made to the 'Law on the Procedure for the Collection of Public Receivables.' If the payment of a public debt on its due date, the implementation of an attachment, or the conversion of attached assets into cash would place the public debtor in a very difficult situation, a deferral can be granted for a period not exceeding 72 months, with interest applied. If the debtor's total debt does not exceed 1 million liras, no collateral requirement will be imposed. For debts exceeding this amount, the mandatory collateral amount will be half of the portion exceeding 1 million liras. The President will be authorized to increase this amount up to 10 times or reduce it by half. With another article, an amendment is being made to the 'Income Tax Law.' Accordingly, for earnings and income obtained outside of Turkey that are exempt from income tax, or for transfers of property through inheritance subject to inheritance and gift tax during the period of exemption, the tax will be levied at a rate of 1 percent. With another accepted article, a regulation is being made regarding the income tax exemption for stock options granted free of charge or at a discount by employers to personnel working in technopreneurship companies that meet the criteria determined by the Ministry of Industry and Technology, which are considered as wages. Accordingly, the upper limit that can be subject to the exemption will be re-determined as twice the gross wage in the relevant year.

'EARNINGS OBTAINED BY INDIVIDUALS OUTSIDE OF TURKEY WILL BE EXEMPT FROM INCOME TAX FOR 20 YEARS'

With the bill, earnings and income obtained outside of Turkey by individuals considered to be residents in Turkey will be exempt from income tax for 20 years, provided that they did not have a residence and tax liability in Turkey in the last 3 calendar years before being considered a resident in Turkey. The existence of a tax liability due to real estate capital income, movable capital income, or capital gains obtained in Turkey by natural persons within the scope of this provision before falling under this scope will not constitute an obstacle to benefiting from this exemption. No annual tax return will be filed for these earnings and income, and if a tax return is filed due to other income, these earnings will not be included in the return. Expenses and costs related to exempt earnings and income will not be taken into account in the determination of taxable earnings and income. Taxes paid in foreign countries due to earnings and income within the scope of this exemption cannot be deducted from the income tax assessed in Turkey. If it is subsequently determined that the conditions for the exemption are not met, the taxes that were not accrued will be considered as having been lost. The Ministry of Treasury and Finance will be authorized to determine the procedures and principles regarding the implementation of the provision. This provision will enter into force on the date of its publication, to be applied to those considered to be residents in Turkey as of January 1, 2026.

INTERNATIONAL AGREEMENT BETWEEN TURKEY AND OECD ACCEPTED

Following the acceptance of the first 5 articles of the bill, discussions began on the 'Bill on the Approval of the Protocol Regarding the Renewal of the Memorandum of Understanding on the Establishment of the Istanbul Center' between Turkey and the Organisation for Economic Co-operation and Development (OECD). Deputy Speaker of the Parliament Buldan had the articles read one by one and submitted them to a vote. As a result of the voting, the bill was accepted.