Scope of Tax Amnesty Program
On June 9, 2021, a tax amnesty program was launched in Turkey. According to Law No: 7326, under the program taxpayers can:
- restructure unpaid tax debts and other payables to the State,
- settle pending tax disputes,
- protect past accounts against potential tax audits by making voluntary tax base increases,
- correct business records to reflect the reality of their situations
Eligible Taxpayers and Deadline
Individual income taxpayers and corporate income taxpayers both benefit the tax amnesty program. The deadline had been defined as 31, August 2021. However, it was extended to September 30, 2021. Taxpayers must apply for the tax amnesty program until September 30, 2021.
Legal Counseling
Tax amnesty program aims to decrease the number of controversies with taxpayers and facilitate Turkish Revenue Agency’s tax collection . In that regard, tax amnesty program obliges the taxpayers to withdraw their court appeals against Turkish Revenue Agency’s administrative actions by September 30, 2021. Moreover, taxpayers are obliged to renounce all future rights to appeal!
Tax amnesty program provides opportunities for the benefit of taxpayers. However, the Law No:7326 requires to withdraw all present and future legal rights. Therefore, we strongly suggest that taxpayers who decides to settle under tax amnesty program shall have legal advise from experienced tax lawyers in order to analyze the impacts of tax amnesty in each individual case.