Turkish Tax Amnesty a Booming Success

August 2, 2013 Taxation in Turkey

TurkeyANKARA – The Turkish government has extended the period of a tax amnesty program by two months, after it led to a TRY 1 billion rise in tax revenues.

Over the last two months, Turkish taxpayers have utilized a tax amnesty program to declare more than TRY 50.5 billion worth of assets, capitals and funds previously hidden abroad, according to a statement issued on August 1st by the Turkish Ministry of Finance.

Due to the success of the amnesty, the Turkish government has announced that the program will be extended by another two months to October 31st, despite originally being scheduled to end on July 31st.

Under the conditions of the the current tax amnesty, Turkish taxpayers declaring and returning any previously undisclosed assets or capitals hidden abroad will pay a tax of only 2 percent, instead of the standard rate of up to 40 percent, and tax authorities will also forgo investigations into whether the declared capitals were originally generated in Turkey.

According to government estimates, the declarations which have already been made under the amnesty will lead to the collection of an extra TRY 1 billion in taxes, with the revenues expected to rise even further in the coming two months.

Since the government of Turkey launched the amnesty, Turkish taxpayers have already declared approximately TRY 49.038 billion in cash and funds, TRY 819 million worth of gold, TRY 518 in securities and other financial instruments, TRY 19 million of tangible assets, and TRY 12 million in real estate.

Photo by Tolga “Musato”