What is Turkish Cash Repatriation Peace (Asset Peace)?
The Turkish Cash Repatriation Peace is the legal and administrative regulations that ensure that assets in the form of money, gold, foreign exchange, securities and other capital market instruments and real estate owned both abroad and domestically but not registered inside Republic of Turkey are registered and included in the national economy accounts, with significant tax advantages.
What is the Legal Basis of the Asset Peace Arrangement?
The regulation regarding the new Asset Peace application has been made in the temporary article 15 added to the Corporate Tax Law No. 5520 with the Article 50 of the Act No. 7417, and the procedures and principles regarding the implementation have been determined by the General Communiqué on Bringing Certain Assets to the Economy with Serial No. 1.
What is the Purpose of the Asset Peace Application?
Its primary purpose is to enable real and legal persons to bring money, gold, foreign exchange, securities and other capital market instruments abroad to the national economy.
The second purpose is to enable the money, foreign currency, gold, securities, other capital market instruments and immovables that are in the country but not included in the legal book records of the income and corporate taxpayers to be declared to the tax office and recorded in the legal book records.
Lastly, its purpose is to enable the declaration of assets within the scope of the article by those who do not have income and corporate tax liability.
Who Can Benefit from the Asset Peace Application?
Real and legal persons holding money, gold, foreign exchange, securities and other capital market instruments abroad can benefit. It is not obligatory to be a taxpayer or a Turkish citizen in order to bring the said assets abroad to Turkey. Everyone from all over the world can benefit.
Income or corporate taxpayers and non-income or corporate taxpayers related to assets (money, gold, foreign currency, securities and other capital market instruments and immovables) located in the country but not included in the legal book records as of 5/7/2022 can also benefit.
Which Assets Located Abroad Can Be Subject to Notification?
From the asses which are located abroad; money, gold, foreign exchange, securities and other capital market instruments may be subject to notification as to benefit from the Turkish Asset Peace.
Which Assets in the Country Can Be Subject to Declaration?
Located in Turkey but not included in the legal books; money, gold, foreign currency, securities and other capital market instruments and immovables may be subject to declaration.
Until What Date Can Notifications Be Made in the Asset Peace Application?
The mentioned assets located abroad should be reported to banks and intermediary institutions until the deadline of 31st of March, 2023.
Until what date can declarations be made in the Asset Peace Implementation?
Assets in Turkey must be declared to tax offices until the deadline date of 31st of March, 2023.
What is the Tax Rate in the Declaration of Assets Located Abroad?
Over the value of foreign assets reported to banks and intermediary institutions;
1% for notifications made until 30/9/2022,
2% for notifications made between 1/10/2022 and 31/12/2022,
3% for notifications made between 1/1/2023 and 31/3/2023
The tax to be calculated at the rate of tax will be paid in advance to the banks and intermediary institutions at the time of notification.
All the assets that are benefited from the Turkish Asset Peace and brought and declared in Turkey are to be exempt from tax and other administrative inspections.
