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РусскийThe Period For Benefiting From The Cash Repatriation Law Has Been Extended
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PDF As remembered, in reaction to the economic downturn, Turkey passed the law,numbered 5811 introducing tax benefits for tax payers who repatriate or declare their unrecorded assets such as cash, real estate,foreign currency etc.
Basically , there were two group of assets benefiting from the law. First group includes cash, foreign currency, gold, securities and other capital instruments, real estate owned abroad. In order to benefit from the law, the first group of assets must be acquired before or on 1 October 2008 and declared to the banks, brokerage companies or tax offices till 2nd of March 2009. Foreign source movable assets must be repatriated or transferred to a bank or brokerage company within one month following the declaration. A tax of 2 % was imposed on the declaration value of foreign source assets repatriated to Turkey.
Second group is the same type of assets owned in Turkey which are not recorded as shareholders equity as of 1 October 2008.These assets must be put into the accounts opened in banks or brokerage companies and declared to the tax Office till 2nd of March, 2009.A tax of 5 % was imposed over the declaration value of the assets. The tax amount will be paid by the end of the month following the tax assessment. Existence of both first and second group of assets must be evidenced by a credible document, such as records kept by, or under the protection of state or issued by banks, brokerage companies and other financial institutions or certified by notaries public or Turkish Embassies and consulates in the relevant jurisdiction.
Additionally, capital gains and periodic revenues obtained from foreign participations or branches , including those obtained at any time up until 30 April 2009, are tax exempt if repatriated to Turkey by 31 th of May,2009.Gains arising from liquidation can benefit from the tax exemption brought by the law , on condition that it is repatriated to Turkey by 31 October 2009. With respect to declared assets, no tax investigation or assessment will be conducted for the fiscal period ending prior to 1 January 2008.However, this limitation does not extends to investigations and prosecutions initiated before the entry into force of the law (i.e, 22 November 2008).İn other words, tax amount calculated and paid over the declared assets can not be deducted from the tax assessment base resulted from the tax investigations initiated before the entry into force of the law no:5811. But, it can be deducted from the tax assessment base resulted from the tax investigations initiated after the entry into force of the law no:5811.
This time, a new law, numbered 5917,effective from 10.07.2009, has amended the previous law numbered 5811 and the period for benefiting from the law numbered 5811, has been extended by the end of september,2009.According to the new law, foreign source assets, such as cash, foreign currency, gold, real estates owned abroad etc and same type of assets owned in Turkey but not recorded as shareholder\\\'s equity should exist as of 01.06.2009 instead of 01.10.2008. Differently from the previous law, in order for the amounts declared to be deducted from the assessed tax base resulted from tax investigations, the tax amount calculated over the declared assets should be paid on time. In addition to these, tax investigations and prosecutions initiated before the entry into force of the new law numbered 5917 (19.06.2009) can not be benefited from the right of deduction.
