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Turkey Provides Rules for Latest Voluntary Disclosure Scheme — Orbitax Tax News & Alerts

Turkey's Revenue Administration has announced the publication of General Communiqué Series No. 1 in the Official Gazette, which provides rules for the implementation of the voluntary disclosure (amnesty) scheme recently introduced under Law No. 7417. As previously reported, the scheme is available for certain domestic and foreign assets, including cash, gold, foreign exchange, securities, and other capital market instruments.

The General Communiqué details the procedures for the declaration of assets and the payment of tax on declared assets, with separate rules for foreign assets and domestic assets, as well as other related matters. Foreign assets declared are subject to tax at a rate of 1% if declared by 30 September 2022, 2% if declared by 31 December 2022, and 3% if declared by 31 March 2023. However, an exemption (0% rate) is provided where assets are transferred to Turkey and held for at least 1 year in an account opened for this purpose. The exemption is provided through a refund of the tax collected. Domestic assets must be declared by 31 March 2023 and are subject to a 3% tax rate, without any reduced rates or possible exemption.