Date: May 2026
A comprehensive bill that includes major tax regulations has been submitted to the Grand National Assembly of Turkey, introducing significant changes aimed at increasing tax compliance and bringing undeclared assets into the formal economy.
Asset Declaration Scheme Introduced
One of the key provisions of the proposal allows individuals and companies to declare previously unreported assets such as cash, gold, foreign currency, and securities held both domestically and abroad.
Under the proposal, these assets must be reported to banks or intermediary institutions by July 31, 2027, and formally recorded in financial accounts.
Tax rates on declared assets will vary depending on how long they are held in the financial system:
- 0% tax if held for at least 5 years
- Increasing gradually up to 5% tax for shorter holding periods
For declarations made between January 1, 2027 and July 31, 2027, the rates will increase slightly by 0.5 percentage points.
Incentives for Compliance
The proposal aims to encourage voluntary tax compliance by offering protections to those who declare assets.
Authorities will not conduct tax inspections or impose additional tax assessments on assets properly declared under the scheme.
However, strict conditions apply:
- Declared assets must be transferred into the Turkish financial system within a specified time
- Taxes due must be paid on time
- Failure to meet these conditions will result in loss of benefits and possible tax penalties
Limitations and Enforcement
Taxes paid under this scheme cannot be deducted as expenses or offset against other taxes. Additionally, any losses arising from the sale of declared assets cannot be used for tax deductions.
If discrepancies are later identified during audits, only the difference exceeding declared amounts will be subject to taxation.
Government Authority
The proposal grants the president the authority to extend the declaration deadline by up to one year in increments of six months. It also authorizes the Ministry of Treasury and Finance to determine implementation procedures.
Source: Patronlar Dünyası Prepared by: İlayda Gök