Foreign revenues to Turkiye captured the attention

The Revenue Administration Presidency is closely monitoring those who earn income from abroad, such as interest and dividends, and starting from Friday, April 5, those who have not declared them will be subject to administrative sanctions.

According to information obtained by AA correspondent, under the Income Tax Law, income obtained due to values ​​represented by cash capital or money, such as dividends, interest, and similar incomes, are considered as capital gains.

Capital gains are declared taking into account factors such as the nature, amount, and whether they are subject to withholding.

Final taxation is applied as withholding tax on deposit interest earned from banks and dividends paid by participation banks. Therefore, there is no need to submit an income tax return.

For full taxpayer companies liable for all types of taxes, if dividends obtained exceed 150,000 Turkish liras, a declaration is required for them.

On the other hand, if income such as interest, repo, and dividends obtained from abroad exceeds 8,400 Turkish liras, there is an obligation to declare all of these incomes.

Tax administrations worldwide share information The Revenue Administration Presidency conducts analysis and audit studies based on data obtained from various sources both domestically and abroad.

Various agreements allowing information sharing among tax administrations worldwide are made to combat the informal economy and tax evasion. As a result of the efforts of the Organization for Economic Cooperation and Development (OECD), the G20, and the European Union to prevent tax losses and evasion and to ensure transparency in tax practices, the “Convention on Mutual Administrative Assistance in Tax Matters” was established.

The agreement, which 147 countries including EU member states are parties to, was signed by Turkey in 2011 and entered into force in 2018.

Interest income is shared mutually among countries Accordingly, information regarding account holders, year-end account balances, gross amounts of income such as interest and dividends paid into the account during the year, or income obtained from assets held in the account is shared mutually among countries.

Information regarding residents of Turkey was obtained from 82 countries within the framework of this agreement.

Similarly, under the agreement signed with the United States of America, payments such as interest and dividends made to accounts of a resident of Turkey in that country are reported to the Revenue Administration Presidency.

The Revenue Administration will compare declarations and incomes Within the scope of these international agreements, the Revenue Administration Presidency closely monitors individuals earning income from abroad, as well as those earning capital gains and capital appreciation.

As a result of the analysis and audit studies carried out within this scope, taxpayers residing in Turkey and earning income such as interest, repo, and dividends from abroad who are required to submit an income tax return have been identified.

Following the end of the income tax declaration period, which will continue until Friday, April 5, the Presidency will mutually verify the declarations submitted by taxpayers earning income from abroad with their incomes.

Individuals who have earned income but have not submitted any declaration or have declared incomplete income will be reported to the relevant tax offices for penalty imposition.

source: prepared by Melisa Beğiç

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