Asset reconciliation scheme relaunched: Deadline for declaration is July 31

The asset reconciliation application, which has been brought back to the agenda by the government after a long break, offers an important opportunity for the legalization of assets located abroad or unregistered in Turkey. According to the relevant communiqués published in the Official Gazette, individuals declaring accounts held in banks or financial institutions and other assets such as securities will be able to rectify their status by submitting a declaration. The said regulation allows taxpayers to include their assets in the system without any risk of tax audit or assessment for the past, while aiming to recover lost income to the economy.

According to the statements made, the application process has been kept quite simple, and taxpayers must submit a declaration to the tax offices affiliated with the Revenue Administration or electronically by July 31. It has been stated that there is no additional time or extension possibility for individuals who miss this date or do not wish to submit a declaration within the period, and official warnings were made for citizens to act in a timely manner. There is no obligation for individuals applying to submit any document regarding the source of the assets they declare or where these assets are located, which is one of the most important conveniences that accelerates the process.

The values of the assets declared within the scope of the application will be accepted based on the nominal values on the date of declaration, and a 1% tax deduction will be made on these values. The tax to be paid can be paid by the end of the month in which the declaration is made, as well as being closed in the three months following the submission of the declaration with options to pay in installments or in cash. When installment options are chosen within the scope of tax debt restructuring, taxpayers will have the opportunity to spread their payments over 6, 9, 12, or 18 months and manage their financial burdens more easily, creating a relieving effect for tradesmen and investors.

The asset reconciliation is not limited only to money, gold, foreign currency, and securities found abroad, but also covers assets that were obtained within Turkey but were reported for income or corporate tax purposes. Within this scope, it is possible for cash assets that have not been declared before to gain legal ground by being deposited into bank accounts or by transferring other financial assets to official records. However, it is not possible to include real estate and other physical assets in this declaration; this issue has been drawn with a clear line by government officials, and only financial assets are valid.

Economists and financial analysis experts comment that this regulation is a strategic step taken to call back capital that went abroad during the pandemic process and subsequent economic fluctuations and to prevent unregistered economy. It is known that similar applications in past years provided an inflow of billions of dollars to the Turkish economy and made positive contributions to budget balances. The July 31 date set in the current application is considered a critical threshold not to be missed for citizens and companies, considering the upcoming election process and global economic uncertainties, and is of great importance for economic stability.