Comprehensive tax regulation from the Treasury: Details of asset amnesty and incentives announced

The Revenue Administration (GİB) of the Ministry of Treasury and Finance has determined the implementation principles regarding the regulation known in the public as the "asset amnesty." With the communiqué published in the Official Gazette and entered into force, the process for bringing certain assets located abroad to Turkey and recording domestic assets not previously included in business records has been clarified.

According to the regulation, money, gold, foreign currency, securities, and other capital market instruments located abroad can be reported to banks or brokerage firms in Turkey until July 31, 2027. Declarations made on behalf of real and legal persons can also be carried out by authorized attorneys or legal representatives.

Banks and brokerage firms will collect a 5 percent tax in advance from the declarant on the assets reported to them. This tax will be declared by the 15th day of the month following the declaration in the capacity of a tax responsible party.

The communiqué also included a framework regarding the discounted tax application. Accordingly, if it is committed that the reported assets will be kept in time deposit accounts, government domestic debt securities, lease certificates, or venture capital investment funds, a discounted tax rate may be applied.

OTHER TAX INCENTIVES ALSO CLARIFIED

With the General Communiqué on Income Tax published in the Official Gazette, the conditions for the exemption granted to real persons living abroad who settle in Turkey by meeting certain conditions were also explained. In this context, the application and implementation process regarding the exemption of earnings and revenues obtained by these individuals abroad from income tax for a period of 20 years has been determined.

With other published communiqués, the implementation framework for regulations aimed at investment, production, exports, international trade, high value-added services, and strengthening the registered economy was also set forth.

Procedures and principles regarding the wage exemption for qualified personnel working in qualified service centers were regulated. An exemption will be applied for the portion of the wages of employees who meet the conditions up to three times the gross minimum wage. For those working in qualified service centers operating in the Istanbul Finance Center and certain industrial zones, this limit was set at five times the gross minimum wage.

The method of applying the income tax exemption regarding shares provided to employees of techno-entrepreneurship companies free of charge or at a discount was also detailed in the communiqué. Clarity was brought to the calculation of the exemption amount, the holding periods of the shares, and the tax consequences that will arise if they are disposed of before the determined periods.

In the General Communiqué on Corporate Tax, the scope of discounts to be applied to earnings obtained from transit trade or brokerage for the purchase and sale of goods abroad, the corporate tax discount regarding the foreign earnings of qualified service centers, and rate applications for producer institutions were regulated.

Transactions regarding the application of a 12.5 percent corporate tax rate to the earnings of producer institutions with an industrial registry certificate and those engaged in agricultural production were also clarified. Furthermore, principles were determined regarding the benefit of corporate tax exemption for taxpayers producing in free zones if they sell the products they manufacture within the zone and to other free zones.

News Source: 12punto