1. Financial Conditions and Legal Processes of Wealth Amnesty
To benefit from the "zero tax inspection" shield provided to enterprises by Law No. 7582, the declaration and preservation conditions of the repatriated assets must be fulfilled completely. The fixed-rate tax approach seen in previous amnesties has been abandoned; instead, taxation is determined based on the duration the capital remains in investment instruments (within the financial system):
The final legal date granted to declare assets (domestic and foreign) owned by real or legal persons to banks or brokerage firms is July 31, 2027.
Taxpayers keeping books on a balance sheet basis are obligated to record the declared assets in their statutory books and open a special fund account under liabilities.
This special fund account opened under liabilities cannot be withdrawn from the enterprise until at least 2 years have passed from the declaration date, and cannot be used for any purpose other than capital addition.
2. Conditions for Reduced Tax Rates (Tiered System)
The new law encourages not only bringing the money to Turkey but also keeping it in long-term investment vehicles. The discounted tax rates to be applied based on the commitment to hold the declared asset in time deposit accounts, government domestic debt securities (DİBS), lease certificates, or venture capital investment funds are as follows:
| Commitment to Hold in Investment Vehicles | Applicable Advance Tax Rate |
|---|---|
| If held for at least five (5) years | 0% Tax |
| If held for at least four (4) years | 1% Tax |
| If held for at least three (3) years | 2% Tax |
| If held for at least two (2) years | 3% Tax |
| If held for at least one (1) year | 4% Tax |
Note: For declarations made starting from January 1, 2027 (until July 31, 2027), half (+0.5) a point is added to these rates.
Penalties for Breach of Commitment
If the declared assets are not brought to Turkey within 2 months, not deposited into the bank, or if the funds are liquidated without complying with the commitment periods given for the discounted tax (e.g., 5 Years 0% tax), the shield against tax inspections is nullified. Furthermore, the taxes that were not accrued on time are immediately collected by the state along with default interest.
3. Repatriation of Foreign Funds (Step-by-Step Procedure)
To legally bring assets (free from tax inspection) located in foreign bank accounts, stock exchanges, or safety deposit boxes into Turkey, the following official steps must be followed:
-
Step 1: Submission of the Declaration Form (ANNEX-1)
By applying to a bank or brokerage firm in Turkey, the type of foreign assets (Money, gold, foreign exchange, securities, and other capital market instruments) and their Turkish Lira equivalent are declared via the active Wealth Declaration system.
-
Step 2: Two (2) Months Physical Transfer Period
It is a legal obligation that the foreign funds subject to the declaration are physically transferred to the bank/brokerage firm accounts in Turkey (or physically brought through customs and deposited into the account) within a maximum of 2 months from the date of the declaration.
-
Step 3: Letter of Commitment (ANNEX-2) and Tax Collection
If the funds are to be held in long-term (1-5 years) investment vehicles, the ANNEX-2 commitment letter is submitted. The Bank/Brokerage Firm collects the tiered tax corresponding to the relevant investment period in advance and pays it by declaring it to the tax office.
-
Step 4: Bookkeeping Records (Special Fund Account)
For companies subject to the balance sheet basis, the brought amount is processed into the "Special Fund" account under liabilities by the CPA, accounting for it and initiating the non-withdrawal calendar (2 Years).
4. Causality Link and Risks in Wealth Amnesty (Supreme Administrative Court Precedents)
According to judicial decisions, Law No. 7582 does not constitute an unlimited "general amnesty". The limits of the immunity to be obtained within the scope of wealth amnesty are as follows:
Causality Link (Nexus) Requirement
It must be proven with concrete information and documents that the tax base difference found during a tax inspection originates from the declared asset. If it cannot be proven, the declared amounts cannot be offset, and the tax assessment is applied.
Pre-Inspection Declaration
Declarations made after a tax inspection has begun or after referral to the appraisal commission do not provide protection for the relevant assessments. Evidentiary documents should be presented during the inspection phase and not left to the litigation phase.
5. Applied Accounting Entries and Special Fund Management
The transfer of declared assets to official book records and subsequent valuations are subject to strict rules under Communiqué Serial No. 1:
| Account Code and Description | Debit (TRY) | Credit (TRY) |
|---|---|---|
| 102 Banks (Foreign Currency Deposit Account) | 4,678,540 | |
| 549 Special Funds (Law No. 7582) | 4,678,540 | |
| Entry of the declared asset into the account and transferring it to the fund. | ||
| 689 Other Extraordinary Expenses and Losses (Non-Deductible Expense) | 233,927 | |
| 102 Banks | 233,927 | |
| Payment of the 5% tax (Cannot be recorded as a deductible expense under any circumstances). | ||
Losses and Liquidation Status
Value Losses: Losses arising from the subsequent disposal of the assets subject to declaration (e.g., a 100,000 TRY fund dropping to 95,000 TRY) are not accepted as an expense in determining income or corporate earnings.
Sole Proprietorship / Ordinary Partnership Liquidation: In the event that an ordinary partnership is liquidated before two years have passed from the declaration date, it is essential that the special fund in liabilities is transferred to the partners' personal statutory books in proportion to their shares without being taxed, and completes the two-year period there.