The law on making changes in the civil servants law no. 7417, some laws and the decree-law no. 375 was published in the official gazette dated 5/7/2022. The regulation regarding the new asset peace application has been made in the temporary article 15 added to the corporate tax law numbered 5520 with the article 50 of the law no.

We have summarized the general questions and answers as the time for the notification about the peace of existence is approaching.

1.            What is the purpose of the peace-of-existence application?

• Bringing real and legal persons’ money, gold, foreign exchange, securities and other capital market instruments abroad into the national economy,

• Money, foreign currency, gold, securities, other capital market instruments and immovables that are in the country but not included in the legal book records of income and corporate taxpayers can be declared to the tax office and recorded in the legal book,

• Ensuring that the assets within the scope of the article in the country are declared by those who do not have income and corporate tax liability.

2.            Who can benefit from the asset peace application?

• Real and legal persons holding money, gold, foreign exchange, securities and other capital market instruments abroad can benefit. It is not obligatory to be a taxpayer or a Turkish citizen in order to bring the said assets abroad to Turkey. everyone can benefit.

• Income or corporate taxpayers and non-income or corporate taxpayers related to assets (money, gold, foreign currency, securities and other capital market instruments and immovables) located in the country but not included in the legal book records as of 5/7/2022. can benefit.

3.            Which assets located abroad can be subject to notification?

located abroad; money, gold, foreign exchange, securities and other capital market instruments may be subject to notification.

4.            Which assets in the country can be declared?

located in Turkey but not included in the legal books; money, gold, foreign currency, securities and other capital market instruments and immovables may be subject to declaration.

5.            Until what date can notifications be made in the asset peace application?

The said assets located abroad should be reported to banks and intermediary institutions until 31/3/2023.

6.            Until what date can declarations be made in the Asset Peace Implementation?

 Assets in Turkey should be declared to tax offices until 31/3/2023.

7.            What is the tax rate in the declaration of assets located abroad?

Over the value of foreign assets reported to banks and intermediary institutions;

 • 1% for notifications made until 30/9/2022,

 • 2% for notifications made between 1/10/2022 and 31/12/2022,

• For the notifications made between 1/1/2023 and 31/3/2023, the tax to be calculated at the rate of 3% will be paid in cash to banks and intermediary institutions at the time of notification.

8.            When are taxes collected by banks and intermediary institutions declared and paid to the tax office?

Banks and intermediary institutions shall declare and pay the tax they collect in cash to the tax office to which they are affiliated with a declaration as tax officer until the evening of the 15th day of the month following the notification.

9.            How to refund the tax paid within the scope of wealth peace?

If the declared assets are kept in these accounts for at least 1 year from the date on which they are transferred to accounts opened in banks or brokerage houses in Turkey or brought from abroad and deposited in these accounts, the tax will be applied as 0%. In this case, the taxes collected by the banks and intermediary institutions during the notification and paid to the tax office will be returned upon the application of the notifier to the relevant tax office within the correction time limit.

10. What is the tax rate in the declaration of assets located in the country?

 A tax of 3% will be levied on the value of the domestic assets declared to the tax offices, and this tax will be paid until the end of the month following the month in which the assessment is made. Payments;

• Via Www.Gib.Gov.Tr Website (Interactive Tax Office and Gib Mobile Application) of our Presidency; » With Credit Cards of Contracted Banks » BANK CARDS OF CONTRACTED BANKS OR from bank account, » Banks operating in foreign countries; 7 with credit cards, debit cards and other payment methods

• Contracted banks; » branches, » alternative payment channels (internet banking, telephone banking, mobile banking, etc.),

• Ptt workplaces, • all tax offices.

11. What are the basic conditions for benefiting from the regulation regarding assets located abroad?

In order to benefit from the regulation;

• Notifying the Banks or Intermediary Institutions in Turkey of Money, Gold, Foreign Exchange, Securities and Other Capital Market Instruments Held Abroad until March 31, 2023, • Bringing These Assets to Turkey Within 3 Months From the Date of Notification,

• The calculated tax must be paid on time. 8 14. Assets located in the country

12. What are the basic conditions for benefiting from the regulation on domestic assets?

In order to benefit from the regulation;

• Declaring money, gold, foreign currency, securities and other capital market instruments and immovables in Turkey but not included in the legal book records to the tax office to which you are affiliated in terms of income or corporate tax until March 31, 2023,

 • The calculated tax must be paid on time.

13. How will assets owned abroad be reported?

 The said assets owned abroad can be reported to banks or intermediary institutions over the Turkish lira value by using the fixed notification form. Only securities or other capital market instruments can be reported to intermediary institutions. Real and legal persons can make this notification themselves, as well as their authorized proxies or legal representatives.

It is essential to report the assets abroad to the bank and intermediary institution, and it is not possible to declare them to the tax offices by real or legal persons. No documents will be requested from the banks or intermediary institutions regarding the declared assets. However, if the notification is made by the representative or legal representative of the real or legal person, banks or intermediary institutions will check whether the said proxy or legal representative is authorized.

The assets used by real and legal persons in closing foreign loans and capital advances must also be reported to banks and intermediary institutions.

14. Can the declared assets be used to close foreign loans?

The assets subject to the notification can be used to close the loans used from banks or financial institutions abroad and recorded in the legal books as of 5/7/2022, until 31 March 2023 at the latest. In this case, the condition of being brought to Turkey will not be sought for the assets used in the payment of the debt, provided that they are deducted from the book records.

15. How will assets abroad be brought to Turkey?

If money, gold, foreign currency, securities and other capital market instruments are physically brought to Turkey or these assets are transferred to an account to be opened in banks or brokerage houses in Turkey, the condition of bringing them to Turkey will be met. The documents obtained from the customs administration based on the declaration/notification made during the physical bringing of the said assets abroad to Turkey can be used to prove that the assets have been brought to Turkey.

In case the assets located abroad are used to close the loans used from banks or financial institutions abroad and recorded in the legal books as of the effective date of the regulation, the condition of actually bringing them to Turkey will not be sought, provided that these loans are deducted from the book records. In case the capital advances registered in the legal books as of 5/7/2022 are met by bringing money, gold, foreign currency, securities and other capital market instruments abroad before this date, provided that the said advances are deducted from the book records, Assets will be deemed to have been brought to Turkey.

16. Can companies declare assets that appear on behalf of third parties and not in their own name?

 The assets that appear on behalf of the legal representatives, partners or proxies of the companies, not in their own name, or that are disposed of by persons other than them, may also be subject to notification or declaration.

17. Will the title deed fee be charged for the registration of the immovables declared in the name of the enterprise to the title deed?

No fee will be charged for the transactions to be made in the title deed regarding the transfer of the immovables to be declared and registered as the enterprise.

18. Will there be an investigation on the declared or declared assets?

No tax inspection and tax assessment will be made regarding the amounts corresponding to the declared or declared assets.

19. What is the expense and depreciation application for reported assets?

The provisions regarding depreciation in the tax procedure law will not be applied to the assets that are transferred to the legal book records by being the subject of notification. Losses arising from the subsequent disposal of these recorded assets will not be considered as an expense or deduction in the determination of income or corporate income in terms of income or corporate tax application. Taxes paid due to declared or declared assets shall not be recorded as expense and cannot be deducted from another tax. Income and revenues arising from the holding and disposal of the said assets will be taken into account in the determination of income and corporate income within the framework of general principles.

 20. Is it possible to make corrections after the peace-of-existence implementation ends?

After the notification and declaration period has expired, no corrections can be made regarding the asset peace declaration or declarations. However, it is possible to make corrections within the framework of the explanations made in the general notification during the notification and declaration period.

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