A new Law No. 7256 published in the official gazette on 27 November 2020 includes a new wealth amnesty regime which is applicable until 30 June 2021.
The aim of this amnesty is to attract cash (including foreign currency), gold, securities, and other capital market tools, movable assets and immovable assets located outside of the country into Turkey.
The legislation brings an immunity from inspections, enquiry, penalty, assessment for the above mentioned assets if declared to a financial institution in Turkey by 30 June 2021.
Following the declaration, the assets should be physically brought or transferred to a bank or financial institution in Turkey within three months after declaration. Unlike the previous amnesty regimes, no tax rate is predicted over the transferred asset amount for both
the foreign and domestic assets.
Apart from the above, there has been 2 significant developments in 2019 regarding individual taxation:
1 - An additional tax bracket of 40% has been introduced, which has become the marginal tax rate applicable for the income after annual income of 600,000 TRY (650,000 TRY for 2021).
2 - Individuals who received all their salary income from one Turkish employer did not have to report such salary income in their annual income tax returns until 2020. From 2020 and onwards, individuals earning annual salary income over 600,000 TRY (for 2020) would be obliged to report such salary in their annual income tax returns even though they received their salary from a single Turkish employer.
Filing an annual income tax return does not necessarily bring additional tax burden for such salary earners, as the applicable tax rate and brackets in the tax return is the same as the ones in payroll taxation. Then again, if the individuals have other types of reportable income in the tax return, the applicable tax rate for such income would automatically rise to 40% due to salary income inclusion in the tax return.