New Developments
With Presidential Decree No. 4196 (“Decree“) published in the Official Gazette dated 30 June 2021 No. 31527, 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 31 December 2021).
What Does The Decree Introduce?
With 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 recorded. We discussed the asset peace incentive in our bulletin dated 19 November 2020 (you can find the bulletin here).
As per the extension brought by the Decree, to benefit from the incentive under Law No. 7256, the following regulations apply:
- Money, gold, foreign exchange, securities and other capital market instruments held abroad should be duly notified to Turkish banks or intermediary institutions by 31 December 2021.
- Money, gold, foreign exchange, securities, other capital market instruments and immovable properties held in Turkey but not recorded in legal books should be notified to the tax authorities by 31 December 2021.
Conclusion
With the Decree, the duration of the asset peace incentive introduced by Law No. 7256 has been extended, allowing those who have not yet benefited from the asset peace to use this incentive.
