Turkey Eyes Repatriation Tax Break
April 26, 2013 Taxation in Turkey
ISTANBUL – Turkey is looking to claw back over TRY 130 billion in funds via a new amnesty program which encourages reparation of funds which are currently held overseas.
On April 24th a new bill was tabled in the parliament of Turkey, setting out a proposal to enact new regulations for the repatriation of capitals and assets held overseas by Turkish taxpayers.
Under the newly proposed rules, funds brought into the country by local taxpayers will be taxed at only 2 percent.
According to the Prime Minister of Turkey Recep Tayyip Erdo?an, the government will not conduct investigation into the source of funds when they are declared, and no further investigations will be launched in the future in regards to the repatriated capitals.
It is expected that the loosened rules will lead directly to the repatriation of up to TRY 130 billion (approx. USD 72.8 billion) of funds currently held overseas.
It has been suggested that the repatriation program will prove to be effective due to the stability of the Lira and the high returns currently being offered by banks in the country.
Photo by World Economic Forum