The Revenue Administration (GİB) published a communiqué in the Official Gazette, putting into effect the regulations for bringing assets located abroad into the Turkish economy.
According to the communiqué, real and legal persons may declare their money, gold, foreign currency, securities, and other capital market instruments abroad to banks or intermediary institutions in Türkiye until July 31, 2027. Declarations may also be made by authorized agents or legal representatives.
Banks and intermediary institutions will collect a 5 percent advance tax on the declared assets and will declare this tax as a tax agent by the evening of the 15th day of the month following the declaration. A reduced tax rate will apply if the assets are committed to be held in time deposit accounts, government debt securities, lease certificates, or venture capital investment funds.
Wage exemption for qualified personnel
The communiqué also set out the principles for the wage exemption for personnel working in qualified service centers. Accordingly, the portion of the wages of employees meeting the conditions up to 3 times the gross minimum wage, and up to 5 times for those working in qualified service centers in the Istanbul Financial Center and certain industrial zones, will be exempt from income tax.
Share certificate exemption for techno-enterprise companies
The income tax exemption for share certificates provided by techno-enterprise companies to their employees free of charge or at a discount was also regulated in detail. The calculation of the exemption amount, the holding periods of the share certificates, and the tax consequences in case of disposal before the specified periods were explained.
New incentives for corporate tax
The Corporate Tax General Communiqué determined the procedures and principles for the tax reduction to be applied to income derived from transit trade or from intermediating the purchase and sale of goods abroad, as well as the corporate tax reduction for income earned by qualified service centers from abroad.
A corporate tax rate of 12.5 percent will be applied to the income of producer institutions holding an industrial registration certificate and those engaged in agricultural production. Taxpayers producing in free zones will also benefit from the corporate tax exemption on income derived from the sale of the products they manufacture within the zone and to other free zones.
Additionally, the Income Tax General Communiqué clarified the application process and eligibility conditions for the exemption from income tax for 20 years on income and earnings earned abroad by real persons living abroad who settle in Türkiye under certain conditions.
