Numara : 10
Tarih : 1.8.2019


NO: 2019/10

June 25, 2019

Subject: Regulations concerning the tax legislation within the Law No. 7186

The Law No. 7186 on the Amendment to the Income Tax Law and Certain Laws has been published in the Official Gazette dated 19 July 2019 and No. 30836 (Reiterated).

Regulations concerning the tax legislation within the Law No. 7186 are provided below.
1. Wealth Amnesty

Article 2 of the Law No. 7186 containing regulations on wealth amnesty.

1.1. Assets abroad

Real persons and legal entities, will be able to freely dispose on money, gold, foreign currency, securities, and capital market instruments abroad provided that they declare the relevant assets to a Turkish bank or financial intermediary until 31 Dec 2019.
Banks and intermediaries shall declare and pay 1% tax to the related tax office, over the declared amount on behalf of the taxpayer until the end of the 15th day of the month following the declaration. 

The assets declared within this context are required to be moved or transferred to the accounts (bank accounts or intermediary institution accounts) in Turkey within three months following the date of declaration.


  • Assets located abroad can be used until 31 Dec 2019 for repayment of loans credited from banks or financial institutions which are recorded on legal books by the date of 19 July 2019. The assets used for above purposes will not be required to be transferred to Turkey. The tax payers benefitting from the above mentioned conditions would be obliged to prove with receipts documents that loans credited from banks and financial institutions located abroad are closed.

  • If capital advances that are registered in the statutory books as of 19 July 2019, are met through the transfer of money, gold, foreign currency, securities, and other capital market instruments from abroad into Turkey, taxpayers can benefit from the provision provided that such capital advances are removed from the statutory books.

  • The assets brought to Turkey and recorded into the statutory books by the income and corporate taxpayers, may be included in the company regardless of being included in the taxable profit. Furthermore, the relevant assets can be withdrawn from the company without being included in taxable and distributable profit.

1.2. Assets in Turkey
Income and corporate taxpayers, shall be able to declare assets in Turkey which are cash, gold, foreign exchange, securities, other capital market instruments and immovable that are not indicated in the statutory books to the tax office until 31 Dec 2019. 
The amounts declared in this manner shall be subject to taxation at a rate of 1%, which shall be required to be paid by the end of the month following the month in which the tax was assessed.

1.3. Assurances Provided by the Law

As per the relevant provisions of the law, no tax inspection or assessment shall be conducted with respect to the assets declared within the context of the concerning law provided that any requirement arising from another circumstance remains preserved.

In order not to be subject to assessment or tax investigation, the below conditions shall be met:

  • Income tax calculated for assets shall be remitted to the tax office before due date,

  • Assets shall be transferred to Turkey in 3 months following to notification or to transfer into the account which is opened in the Turkish bank or financial intermediary institution

2. Special provisions reserved by factoring companies

As is known, with the Law No. 7061 published in the Official Gazette dated December 5th, 2017, it was made possible for financial leasing and financing companies to treat special provisions reserved as expense in calculation of corporate tax base starting from 1 January 2019. 

In accordance with the article 26th of this Law, the same opportunity is granted to factoring companies.

3. Bad debt consideration of irrecoverable credit/receivables due to impossibility of collection 

As per the amendment made to Article 53 of the Banking Law No. 5411 via Article 16 of this Law, irrecoverable credits due to impossibility of collection will be considered as bad debt after reserving special provisions.

Similarly, in accordance with the Article 26 of this Law, irrecoverable credits due to impossibility of collection will be considered as bad debt after reserving special provisions within the framework of the Law on Financial Leasing, Factoring and Finance Companies numbered 6361.

4. Financial restructuring framework agreements

With the Article 17 of this Law, temporary Article 32 has been added to the Banking Law No 5411 by way of which financial restructuring including exemptions on fees, stamp duty, BITT and RUSF has been introduced.

5. Support the production of electric motor vehicles

In order to support the production of electric motor vehicles, within the scope of the reduced corporate tax rate incentive, the President has been authorized to allow the utilization of the amount of contribution to the investment, by being offset against the special consumption tax to be paid to the tax office at the first acquisition of the said goods, or by refunding the SCT in cash.
6. Increasing departure fee

With the Article 20th of this Law, departure fee which was formerly applied as TL 15 to the Turkish citizens travelling abroad, is increased to TL 50.

Yours sincerely,
Deloitte Turkey


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