If individuals earned income in more than one country, they could automatically be unregistered because there was no inter-country information exchange arrangement. With this regulation, it is aimed to tax all income obtained in any country.

Turkey will send the covered account information of the other country’s residents to the agreement and receive the account information covered by the Turkish resident from those countries.

Countries that are not parties to the automatic information exchange agreement or do not fulfill their obligations may be placed on the “blacklist”, a list of countries that do not cooperate tax-related, and therefore the source of every money transfer to the country is subject to a high degree of withholding (tax) without question.

It first started in 2018, limited to Norway and Latvia. However, in Germany, France, the Netherlands, Austria and Belgium, where Turkish citizens live and/or earn income, implementation will begin in 2021, for 2020. In other words, C. The Ministry of Finance (Directorate of Revenue Administration) will provide financial information to these countries for 2020 by September 2021 and receive information from them.

Financial institutions in Turkey will not send information directly abroad. For example, banks will report information about the accounts they have identified to the Directorate of Revenue Administration of the Ministry of Treasury and Finance, and the Presidency will send this information to the relevant countries over a secure electronic network. Information about the accounts in the opposite countries will also be sent to our country (GIB) by the tax authorities.

In accordance with the legislation of the relevant state, the person or institution that falls under the taxpayer due to the residence, house, legal center, business center or any other similar criteria is considered to be resident (resident) in that country.
For example, if you want to use If a real person who is a Citizen of Turkey is a permanent resident of Germany, he or she is considered a resident of Germany (German resident) and information about his financial accounts in Turkey is shared with Germany by the Directorate of Revenue Administration.

According to Article 4 of the Income Tax Law, “those who have a residence in Turkey and those who live in Turkey continuously for more than 6 months in a calendar year are considered to have settled in Turkey.”

Information will be shared with residents and institutions in the relevant countries, as well as some institutions based in Turkey controlled by residents in these countries (e.g., institutions that generate passive income such as interest and dividends or hold assets for this purpose, but are not financial institutions).

Yes. The criterion for information exchange is not citizenship, but settledness (residentship) for tax purposes.

Branches of foreign financial institutions located in Turkey and financial institutions established in Turkey will send information to the Revenue Administration. The overseas branches of Turkish financial institutions are subject to the legislation of their country and it will not be possible to send customer information from these organizations to other countries through Turkey (Directorate of Revenue Administration) within the scope of automatic information exchange.

4 types of financial institutions are covered:
1- Deposit institutions (banks in general)
2- Storage institutions (storage banks, etc.)
3- Investment institutions (such as investment banks and funds)
4- Certain insurance companies (except public institutions, international organizations)

If one of the following indicators is found in the financial institution records, the Presidency will be notified of the country in which the indicator is located:
– Registration of the person as a resident of the relevant country
– Current correspondence or residence address in the relevant country
– Phone number registered in the relevant country (if there is no phone number in Turkey)
– Order for regular transfer of funds from accounts other than deposit accounts to accounts in the relevant country
– Given to a person with an address in the relevant country representation or signature authority (power of attorney)
– The address specified for mail retention service instruction or postal shipment in the absence of another address in the records of the financial institution

The financial accounts covered are;
– deposit accounts,
– retention accounts,
– debt and partnership relationship interest,
– cash value insurance contracts and
– regular payment agreements.

As a general rule, if a company established in Turkey engages in active commercial activity such as production or goods trading, the corporate account is not covered by automatic information exchange, regardless of the share of the partnership, even if the partner is resident abroad. However, there may be notification of the accounts opened by Turkish citizens in Turkey on behalf of the companies they have established abroad.

There is no automatic fundamental exchange of information on non-financial assets such as real estate (house, building, land, etc.) and vehicles.

Both individual accounts and corporate accounts opened after 01/07/2017 are covered by the notice regardless of the balance.
If the account balance does not exceed US$250,000 in accounts belonging to institutions opened before 01/07/2017, the financial institution is not obliged to report this account to the Presidency. For individual accounts, such a threshold is not available.

The balance or value of the financial accounts covered by the Agreement on December 31 and the income paid to this account during the year (such as interest, dividends, dividends, proceeds from the sale of financial assets, etc.) are covered by the notice. However, account transactions such as real estate rent payment and debt payment deposited in a deposit account during the year are not covered by automatic information exchange.

There will be no double taxation due to automatic information exchange. The income obtained will be taxed only in the country where the income is obtained (e.g. in Turkey), or the tax paid in the country where the income is obtained (e.g. in Turkey) can be deducted from the tax to be paid in the other country of residence, that is, the tax paid in Turkey can be deducted from the amount to be paid in the relevant country.
Some of the income obtained in Turkey is subject to taxation in other countries. For example, if you want to use Under the “Double Taxation Prevention Agreement” between Turkey and (A), Turkey receives a 10% tax deduction on dividend income and if 15% of these incomes are taxed in the country of the original resident (A), the difference is to be paid to country (A).

Turkish citizens will not be adversely affected by the automatic exchange of information if they comply with the tax laws in their countries.

No. It is not possible to exclude the information of the accounts that meet the above-mentioned sharing criteria from automatic exchange by means of applications, petitions, objections and lawsuits.