An opportunity not to be missed: Peace of Being

Murat ÇİFTÇİOĞLU – Tax Inspector

Provisional Article 93 of the Income Tax Law includes provisions relating to the acquisition of certain assets located abroad and in the national territory for the national economy, and the procedures and principles relating to the implementation of the provisions of said article are determined by the “General Notice on the contribution of certain Assets to the economy with serial number 1”. .

Although the deadline for benefiting from the regulations on the introduction of certain assets abroad and in the country into the economy was fixed at 30.06.2021 in the article of the law, it has been extended until 30.06.2022 by the decision of the President n° 5058 published in the Official Journal. No. 31706. We would like to point out that those who wish to make a notification must consider 30.06.2022 as the last day, recalling that the President last used the power to extend the time specified in the article of law.

Who can benefit from Asset Peace?

Natural and legal persons (there is no requirement to be a Turkish taxpayer or citizen) who have assets included in the scope abroad, and income taxpayers and companies who have assets in the country that are not included in the legal registers can benefit from it.

No distinction is made regarding the taxpayers’ income from the patrimonial peace arrangement, and it is indicated that all (those who keep accounts on the basis of a balance sheet, those who keep accounts on a professional basis, those who keep an independent activity accounting book) can benefit from it.

What assets are covered by Asset Peace?

located abroad;

· money,

· Gold,

· Cash,

Securities and other capital market instruments (Eurobond, Warrant, Swap, Real Estate Certificate, etc.)

Located in the country and not included in the legal registers;

· money,

· Gold,

· Cash,

Securities and other capital market instruments (Eurobond, Warrant, Swap, Real Estate Certificate, etc.)

· Buildings (Land, Land, Building, Rights etc.) are in the field of peace of heritage.

While buildings located in the country fall within the scope of heritage peace, buildings located abroad are excluded. Those who wish to make a notification will be able to benefit from the regulations by converting their properties abroad into the aforementioned properties.

What are the conditions for benefiting from the settlement?

In order to benefit from the regulations relating to assets located abroad;

Presence of silver, gold, currencies, securities and other capital market instruments abroad,

Declaration of these assets abroad with banks and brokerage houses in Turkey until June 30, 2022,

Bring or transfer these notified assets to Turkey within 3 months from the date of notification.

In order to benefit from the regulations regarding assets in the country;

Be a taxpayer or corporate taxpayer,

Assets in Turkey are not included in the taxpayer’s legal books and records as of November 17, 2020,

· Notification of silver, gold, foreign currency, securities and other capital markets and real estate to the competent tax authorities for income and corporate tax until June 30, 2022 ,

The property declared other than the building must be deposited by the taxpayers in their accounts in the banks and intermediary establishments,

In the event that the buildings are registered in capital in kind, the decision to increase capital must be taken from the date of notification of the building and this must be registered in the commercial register until the end from the 10th month following the date of notification,

Mandatory.

How to notify Asset Peace?

While notification regarding assets located abroad must be made to banks and intermediary institutions in Turkey, notification of assets located in the country will be made to tax offices.

For assets located abroad, banks and intermediary establishments will be notified by completing the Form (Annex-1) attached to the press release by natural and legal persons, and no notification will be made to the tax services concerning these assets.

On the other hand, assets located in the country will be submitted to the tax office to which they are affiliated for income and corporate tax, with the form (annex-2) attached to the release, and taxpayers may send their notifications in this context to the tax offices to which they are affiliated in an electronic environment.

It is essential to make a single declaration for assets located abroad and in the country. However, it is possible to make more than one notification (including notifications made for correction purposes) until 30.06.2022.

What are the Opportunities of the Peace of Being?

Assets brought to Turkey can be freely transferred,

It will not be taken into account in determining the income for the taxable period, i.e. it will not be added to the tax base as an item of income,

It can be withdrawn from the activity without being taken into account in the determination of the distributable profit for the establishments,

· In the event that the assets included in the business are distributed to the partners by the corporate taxpayers;

– No deduction due to the distribution of profits,

– These sums obtained by partners, natural and legal persons, will not be taxed.

No tax will be calculated or paid for these assets,

· There will be no inspection and tax assessment for these assets.

In order to benefit from the opportunities within the framework of Asset Peace;

Bring the assets abroad subject to the notification to Turkey within 3 months from the date of notification or transfer them to an account to be opened in a bank or an intermediary establishment in Turkey,

The national assets subject to the notification must be deposited by taxpayers in their accounts with banks and intermediary institutions. Asset Peace transactions for domestic assets are June 30, 2022.), then notification to the tax office with inducement documents is required.

As a result;

Although the opportunities for those who will benefit from Asset Peace have been laid out in our article, different tax rates (2%-5%, etc.) have been paid in the Asset Peace regulations implemented in recent years. say that it is a more advantageous arrangement than past practices of patrimonial peace, considering that it will not pay. In addition, we recommend that taxpayers take advantage of this by reminding again that the notification period will expire on 30.06.2022 and that this date does not coincide with the public holiday.

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