The long awaited new tax amnesty regulation in Türkiye was passed by the General Assembly of the Grand National Assembly of Türkiye on May 20, 2026, and became law. Following the President’s approval, the regulation was published in the Official Gazette and entered into force, offering a significant opportunity to declare assets held both domestically and abroad. From a consulting perspective, this regulation represents an advantage that should not be missed, particularly for individuals and legal entities with unregistered assets or funds accumulated abroad.
What Is the Asset Amnesty Program and Who Is Eligible?
The Asset Amnesty Program is a scheme that allows cash, gold, foreign currency, securities, and other capital market instruments held abroad or not recorded in legal accounting books within the country to be declared and legalized within a specified timeframe and under certain conditions. All individuals and legal entities, regardless of whether they are taxpayers, can benefit from this regulation. In other words, it is not limited to company owners or merchants; anyone wishing to bring their savings from abroad into Türkiye can take advantage of this right. The primary objective of the Asset Amnesty is to increase transparency in the economic system and boost public revenues by incorporating assets held off the books into the system through tax incentives.
Application Period and Tax Rates
The application period for those wishing to benefit from the Asset Amnesty continues until July 31, 2027. During this period, assets can be registered through declarations made to banks or financial institutions. While the general tax rate for declared assets is set at 5%, this rate can be reduced to as low as 0% if certain investment and commitment conditions are met. This flexibility offers a significant advantage, particularly for individuals and institutions with long-term investment plans. Another key benefit for declared assets is that, provided the conditions are met, no tax audit will be conducted regarding these assets, and no retroactive penalties will be imposed.
Reporting of Overseas Assets
The requirements for reporting cash, gold, foreign currency, securities, and other capital market instruments held abroad are quite clear. These assets must be reported to banks or brokerage firms in Türkiye. There is a requirement that the reported assets be transferred to accounts opened in their names at banks or brokerage firms in Türkiye within two months of the reporting date, or that assets physically brought from abroad be deposited into these accounts. For assets brought in physically, there is a requirement to provide documentation supporting the declaration made to the Customs Authority. One of the most common issues encountered during this process is uncertainty regarding the documentation of the assets’ source. Our recommendation as consultants is to consult with a financial advisor before beginning the process to ensure all necessary documents are completed.
Declaration and Recording of Domestic Assets in Books
The provisions regarding domestic assets apply only to income tax or corporate tax payers. These taxpayers may report cash, gold, foreign currency, securities, and other capital market instruments that they own but are not recorded in their legal books to banks or brokerage firms by July 31, 2027. There is also a requirement to substantiate the reported assets by depositing them with banks or brokerage firms as of the date of the report. Taxpayers who maintain books of account are required to record the reported assets in their legal books as of the date of declaration. Taxpayers who maintain books of account on a balance sheet basis will open a special reserve account in the liabilities section for the assets recorded in their books. This reserve account cannot be withdrawn from the business for two years following the date of declaration and may not be used for any purpose other than capital increases.
Benefits of the Tax Amnesty
One of the most significant benefits of the asset amnesty program is that no tax audits will be conducted on reported assets, and taxpayers will not face any retroactive tax penalties or sanctions. This provides significant reassurance, particularly for taxpayers who hold unregistered assets or who have not fully met their tax obligations in previous periods. Additionally, as reported assets are incorporated into business records, companies’ financial statements begin to reflect the actual financial situation, which has a positive impact on creditworthiness and investor confidence. The inclusion of reported assets in the company’s balance sheet strengthens equity and improves the financial health of the business.
Points to Consider
While the asset amnesty regulation offers significant opportunities, it is advisable to pay attention to certain points. First, it is mandatory to comply with the two-month transfer period for the declaration of assets held abroad. To ensure this deadline is not missed, transfer planning must be completed prior to the declaration. Second, funds deposited into the special account opened by taxpayers who maintain books on a balance sheet basis cannot be withdrawn from the business for two years. Therefore, it is crucial for businesses with cash flow needs to carefully plan the amount they will transfer to this account. Third, before deciding to take advantage of the asset amnesty, the tax implications of the assets to be declared must be analyzed by an expert.
Asset amnesty regulations offer significant opportunities to bring unrecorded assets into the system and eliminate past-period tax risks. During this process, which will continue until July 31, 2027, it is crucial to seek the right advisory support to declare your assets in the most advantageous manner and protect yourself from potential risks. For detailed information on this matter and customized solutions, you can contact the expert team at Bu Müşavirlik. Let’s determine the strategy best suited to the status of your assets together and complete the process smoothly.
