Turkey

Corporate - Other issues

Last reviewed - 16 October 2020

Intergovernmental agreements (IGAs)

Following the negotiations between Turkey and the United States, Turkey has been included on the list of jurisdictions that have reached agreement in substance as of 3 June 2014, and Turkey was regarded among the countries that will sign the Model 1 IGA. On and after 3 June 2014, Turkey and the United States had further negotiations and infrastructure tests, which were finalised by the beginning of July 2015, and the agreement was signed on 29 June 2015.

The IGA entered into force by the Council of Ministers Decision No. 9229 dated 19 September 2016, which is published in the Official Gazette dated 5 October 2016, and numbered 29848.

Tax authorities are currently working on finalising the Draft Secondary Legislation. Turkish financial institutions are waiting for the secondary legislation to be finalised and come into force and eligible to be fully Foreign Account Tax Compliance Act (FATCA) compliant. As of November 2017, Draft Secondary Legislation is still not published.

Turkey, as a member of G-20 and OECD, has officially stated that it will be in compliance with the OECD’s Common Reporting Standards (CRS). As of 20 May 2017, the agreement has been published in the Official Gazette and has entered into force. Simultaneously, the tax authorities shared a draft version of the CRS Secondary Legislation ("Communiqué") with Turkish banks to request their comments, which has been published as of 30 June 2017. The draft communiqué has not been published in the Official Gazette but rather a  CRS Guideline was published  on 25 August 2020 announcing that Turkey will start exchanging financial account information of 2019 by the end of 2020. Bilateral exchange will be made with 54 countries whereas 17 countries will be sending information to Turkey.

For up-to-date information

For up-to-date information on the most recent and significant developments in Turkish tax regulations, please refer to the tax bulletins added to our tax portal, Vergi Portali, which can be accessed at Vergiportali.com.