The last Cash Repatriation Regulation aspires to earn foreign and domestic capital to our economy. It is going to be the 7th Cash Repatriation in the last 12 years. It is thus called the 7th Cash Repatriation Regulation. The deadline is on 30.06.2021, if not deferred to a future date.
Dear Fortune readers, in this article I would like to share my assessment of the latest Cash Repatriation regulation issued with the purpose of earning foreign and domestic capital to national economy.
Cash repatriation the first of which was issued in 2008 to respond to the adverse impact of the global crisis then to become permanent for various reasons aims to earn foreign capital to national economy and register domestic capital. We witness seven separate cash repatriations, also including this last one, in the last 12 years.
Law no. 7256 issued on 17.11.2020 stipulates that the deadline to apply for the new cash repatriation is on 30.06.2021. The President holds the authority to defer this date as of the deadline for up to a year in periods of maximum six months.
The law addresses cash, gold, foreign exchange, stocks and bonds and other capital market instruments of natural persons and corporations registered abroad and cash, gold, foreign exchange, stocks and bonds and other capital market instruments located in the country without being registered to legal books of income and corporate taxpayers. In case real estate located abroad is turned into countable asset until 30.06.2021, it will be possible for the owner to benefit from the terms of the cash repatriation. The application regarding foreign assets will be made via notifying banks or intermediaries until 30.06.2021, while the latter will not demand any document for the notification. The application regarding domestic assets will, on the other hand, be made online to affiliated tax offices until the same deadline. No tax payment is stipulated for the notification of foreign or domestic assets. However, it is required for the cash, gold, foreign exchange, stocks and bonds and other capital market instruments notified abroad to be physically transferred to Turkey or deposited to a national bank or intermediary account within three days as of the notification. It is sufficient to notify the intermediary institution regarding real estate and other capital market instruments which cannot be physically transferred to Turkey or deposited into an account. Foreign and domestic assets can be freely used after the notification, while the notification will not be subject to any tax audit or assessment. These assets deposited to companies can be withdrawn at will; they will be exempt from tax and corporate income in case they are registered to legal books and stoppage in case distributed to partners. Furthermore, partners receiving this payment will not be required to make any income declaration.