Tax Amnesty Law (Law No. 6736)  
 
 
A. INTRODUCTION

The Law regarding the Restructuring of Certain Receivables (Law No.6736) (the “Tax Amnesty Law”) has become effective with its publication in the Official Gazette dated August 19, 2016 and No. 29806.

 
 

B. THE RESTRUCTURING OF PUBLIC RECEIVABLES

1. The Scope of Public Receivables that are subject to the Restructuring

Under Article 1 of the Tax Amnesty Law, public receivables which can benefit from the restructuring provisions are clearly stated. They are as follows:

 
 

C. TAX INCREASE AND TAX BASE INCREASE

On the condition that taxpayers voluntarily increase or pay certain tax /tax base for certain taxes which they have declared between the fiscal years of 2011 and 2015 at the rates specified under the Tax Amnesty Law, they will no longer be subject to a further tax inspection for such taxes and fiscal periods. In other words, it will be possible for such taxpayers to avoid previous period tax risks by increasing their tax bases and paying tax principals.

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D. ADJUSTMENT OF BUSINESS RECORDS

1. Adjustment of Records in relation to Commodities, Machinery, Equipment and Inventories existing in the Business but are not included under Records

Taxpayers wishing to adjust their business records as those records will comply with the real situation, shall apply to the affiliated tax office until November 30, 2016 (including this date). Income and corporate taxpayers may register the commodities, machinery, equipment and inventories existing in their business but not existing in their records to their books with their current market value.

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E. WEALTH AMNESTY

1. Cash Repatriation

In cases where individuals and legal entities bring their money, gold, foreign currency, securities and other capital market instruments from abroad into Turkey until the date of December 31, 2016, they will have the right to freely dispose of such assets.

Assets brought from abroad into Turkey may be included under the enterprise of taxpayers keeping legal books. However, such transaction will not be considered during the calculation of annual profit of the enterprise and then withdrawn of those from the enterprise will not also be regarded as a dividend distribution. Due to those transactions, any taxes are not required to be declared and paid by taxpayers.

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  Tax Team  
 
 
 
 
 

The award winning Pekin & Pekin Tax practice team leaves regular compliance support to accounting firms and instead focuses on more complex cases, giving clients direct practical and innovative advice.

To discuss how these developments affect your business interests please contact either:

Fethi Pekin
Managing Partner
fpekin@pekin-pekin.com
or
Firat Yalçin
Partner, Tax
fyalcin@pekin-pekin.com

 

 
     
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