December 28, 2022
PROVISIONAL ARTICLE 15-
Related Law:
CORPORATE TAX LAW
Up until March 31, 2023, real or legal persons in Türkiye must notify banks or intermediary institutions of money, gold, foreign exchange, securities, and other capital market instruments abroad.
Assets covered by the first sentence may be used to repay loans obtained from foreign banks or financial institutions and recorded in the company’s books as of the day this article took effect, but no later than March 31, 2023. If the assets used to pay the obligation are deducted from the book records, the requirements of this article may be applied in this situation without requiring that they be transported to Türkiye.
In case the capital advances registered in the legal books as of the effective date of this article are met by bringing money, gold, foreign currency, securities and other capital market instruments abroad to Türkiye before the entry into force of this article, the provisions of this article shall be used, provided that the said advances are deducted from the book records until 31/3/2023 at the latest.
Money, gold, foreign currency, securities and other capital market instruments and immovables owned by income or corporate taxpayers and located in Türkiye but not included in the legal book records are declared to the tax offices until 31/3/2023.
Assets declared or declared within the scope of the first and fourth paragraphs are recorded in the legal books as of the date of notification or declaration by the taxpayers who keep the books in accordance with the Law No. 213. Taxpayers who keep books on the balance sheet basis open a special fund account in liabilities for the assets they have recorded in their legal books in accordance with the provisions of this article. This fund account cannot be withdrawn from the business, unless two years have passed from the date of notification or declaration, it cannot be used for any purpose other than adding to the capital, and it is not taxed if the business is liquidated.
Taxpayers who keep books on the basis of self-employment earnings book and operating account separately show the said assets in their books. These assets are not taken into account in the determination of the period income and can be withdrawn from the business without being taken into account in the determination of the taxable income and distributable income for corporations, provided that two years have passed from the date of notification or declaration. Those who do not have income and corporate tax liability can benefit from the provisions of the article without seeking other conditions other than the declaration in this paragraph, it is obligatory for them to deposit the assets other than the immovable by depositing them in banks or intermediary institutions as of the declaration date at the latest.
In accordance with the Fees Law No. 492 dated 2/7/1964, no fee shall be charged for the transactions to be made in the title deed regarding the transfer of the immovables to be registered as a business by declaring within the scope of the fourth paragraph. The transfer of these immovables to operation is not considered as disposal in the application of the repetitive Article 80 of the Law No. 193.
Based on the value of the assets reported to them from the notification owner in relation to the assets notified to them, banks and intermediary institutions declare and pay the tax they have collected in advance at the rate of 1% for notifications made until 30/9/2022, 2% for notifications made between 1/10/2022 and 31/12/2022 (including this date), and 3% to the tax office to which they are affiliated with a tax return, until the evening of the fifteenth day of the month following the notification. The tax rate is applied as 0% if the declared assets are kept for at least one year from the date they are transferred to accounts opened in banks or ntermediary institutions in Türkiye or brought from abroad and deposited into these accounts. In this case, the tax collected by the banks and intermediary institutions during the notification and paid to the tax office is returned upon the application of the notification owner to the relevant tax office.
A tax of 3% is levied on the value of the assets declared to the tax offices, and this tax is paid until the end of the month following the month in which the assessment is made. The tax paid in accordance with this paragraph and the sixth paragraph cannot be recorded as an expense and cannot be deducted from any other tax.
Regarding the assets subject to notification and declaration, the provisions of the Law No. 213 on depreciation are not applicable. Losses arising from the disposal of these assets are not considered an expense or deduction for income or corporate tax purposes.
No tax inspection or tax assessment is made regarding the amounts corresponding to the notified or declared assets. In case it is determined that the tax assessment difference found as a result of tax examinations started for other reasons and the decisions of the valuation commission arises due to the assets declared or declared within the scope of the article, and the amount of the notified or declared assets is equal to or more than the tax base difference found, no assessment is made regarding the base difference.
Although it is determined that the base difference found is due to the declared or declared assets, if it is greater than the said asset amounts, only the difference is taxed on the amount. In case the tax base difference is determined due to reasons other than the assets subject to notification or declaration as a result of tax inspection or valuation commission decisions, the amounts declared or declared within the scope of this article are assessed without deducting from the difference in the tax base.
Although it has been declared in accordance with the first paragraph, if the declared assets are not brought to Türkiye within three months from the date of notification or transferred to an account to be opened in a bank or intermediary institution in Türkiye, the taxes levied on the declared or declared amounts are not paid on time and the other conditions in this article are not fulfilled, the provision of the ninth paragraph cannot be utilized.
The provisions of the ninth paragraph shall not be applied for the assessments to be made as a result of the aforementioned examination or appraisal commission decisions due to the notifications and declarations made within the scope of this article after the date on which the tax examination was initiated or referred to the valuation commission. Failure to pay the accrued tax on due date, together with the late fee of the original tax, pursuant to Law No. 6183, does not constitute an obstacle to follow-up and collection. Collected taxes are non-refundable and non-refundable.
After the notification and declaration period has expired, no corrections can be made regarding the notification or declarations.
The Ministry of Treasury and Finance is authorized to determine the matters regarding the bringing to Türkiye, notification and inclusion in the operation of the assets within the scope of the article, the form of notification and declaration, the information, documents and return procedures to be used in the implementation of the article, and the procedures and principles regarding the implementation.
With the Law establishing this article, the amendment provision made in subparagraph (i) of the first paragraph of Article 10 of the Law is applied for 5 accounting periods, including the 2022 accounting period, for companies that increased their capital or were established for the first time before the effective date of this article.
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Source: Corporate Tax Law
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
