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The asset peace incentive introduced with Law No. 7256 provides various opportunities for the assets held abroad or located in Turkey but not included in the business records to be brought to Turkey or be recorded. You may find the details of the asset peace incentive in our bulletin here. With the publication of Presidential Decree No. 5058 (“Decree”), the deadline for the notices to be made to avail of the asset peace has been extended from 31 December 2021 to 30 June 2022.
With the publication of the Decree in the Official Gazette dated 31 December 2021 No. 31706, the deadline to benefit from the asset peace incentive, which was brought within the scope of Law No. 7256 on Restructuring Certain Receivables and Amending Certain Laws (“Law No. 7256”), has been extended for six months (until 30 June 2022).
What does the Decree introduce?
With Temporary Article 93 amended to the Income Tax Law No. 193 (“ITL”) by the Law No. 7256, a new asset peace incentive was introduced and various opportunities were provided for the assets held abroad or located in Turkey but not included in the business records to be brought to Turkey or be recorded.
To benefit from the incentive under Law No. 7256, the following regulations apply:
- Turkish banks or intermediary institutions should be duly notified by 30 June 2022 regarding money, gold, foreign exchange, securities and other capital market instruments held abroad.
- Tax authorities should be notified by 30 June 2022 regarding money, gold, foreign exchange, securities, other capital market instruments and immovable properties held in Turkey but not recorded in legal books.
With the Decree, the deadlines for the above notices have twice been extended and for one year in total. Since Temporary Article 93 of the ITL states that the deadline for availing of the asset peace can be extended for one year only, there will not be any further extension in this regard after 30 June 2022.
With the Decree, the period of the asset peace incentive introduced by Law No. 7256 has been extended until 30 June 2022, allowing those who have not yet benefited from the asset peace to use this incentive. However, taxpayers considering the benefit from the asset peace should note that the deadline would not be extended again.