As you might recall, we published an article on “Act of Reconstruction of Some Receivables” setting the grounds for a very extensive tax amnesty implementation in Turkey.
While our previous article was mainly focusing on tax exemptions for companies, another significant aspect of the Act was a provision (Article 7) allowing individuals and legal entities to bring their movable properties into Turkey by 31 December 2016 without being subject to any tax liabilities.
Based on the Article 7 and corresponding Notice of Ministry of Finance, individuals and legal entities can freely dispose of their money, gold, securities and other capital market instruments held abroad and the assets cannot be subject to any type of tax inspection or tax assessment in Turkey and they will not trigger any tax liability in Turkey.
Assets that are outside of the scope of Article 7 of the Law (for example immovable properties) can be brought into Turkey under the tax amnesty by converting them into the assets within the scope of this article.
The assets that belong to companies, can be brought into Turkey under Article 7 as well. Companies can bring the assets that actually belong to them through their legal representatives, shareholders or proxies.
If legal entities bring these assets into Turkey, their legal representatives, shareholders or proxies will also be immune to any tax inspection, tax assessment or any type of investigation related to these assets. Further, no retrospective tax inspections or tax assessments can be conducted and no further information can be requested related to gains obtained from these assets in the past or to the resources used for their acquisition.
If individuals bring these assets into Turkey, the companies of which the individual is a shareholder or participates in the management will also be immune to any tax inspection, tax assessment or any type of investigation related to these assets.
