General Annuciation on Law on Restructuring of Some Receivables No 6736
The General Annunciation on Law on Restructuring of Some Receivables numbered 6736 Serial No: 1 has explained the article 7 titled “Acquiring Some Assets to National Economy” of “Law on Restructuring of Some Receivables” (“Law”). In addition to these explanations, “General Annunciation on Law of Restructuring Some Receivables numbered 6736 Serial Numbered 4” (“Annunciation”) brings more detailed explanations and was published on the Official Gazette dated 02.12.2016, numbered 29906 and came into force as of the same date.
1- Aim and Scope
7th article of the Law regulates that real and legal persons who bring the money, golden, securities and the other capital market instruments (“Assets”) to Turkey from abroad, may dispose freely the said assets under the provision of this article, until 31/12/2016. The Annunciation aims to bring additional explanations to 7th article of the Law.
2- Bringing assets to Turkey from Abroad
The Annunciation provides convenience on tax and many other procedures about bringing Assets to Turkey from abroad in accordance with the 7th article of the Law. Detailed regulation is issued under the 2nd article of the Annunciation and conspicuous points are as follows;
In the situation of bringing Assets to Turkey from abroad, there shall not be tax assessment; so, real or legal persons shall not pay any tax.
Notifying the securities and other capital market instruments to a bank or an intermediary by own or empoweree is also enough for acceptance of bringing the said securities to Turkey. For the ones who prefer the notifying option, bringing the securities and other capital market instruments to Turkey via transfer or physically is optional. Banks and intermediaries shall conserve securities or other capital market instruments as per relevant legislations except the situations transferring to an account or opening an account via bringing said instruments physically. Moreover, banks and intermediaries shall not create an account or track the instrument.
The assets that seem to belong to legal representatives, partners or deputies of a company but actually belong to the company can be also brought to Turkey. In said situations according to Annunciation legal representatives, partners of the company or company’s deputies who have signed representation contract issued by competent authority before 19/8/2016, they may bring the company’s Assets valued abroad to Turkey.
3- How Will the Valuation of Assets Brought to Turkey Be Done?
The money, gold, foreign currency, securities and other capital market instruments that are abroad will be valued at the date they are brought to Turkey or notified in accordance with the 3rd article of the Annunciation as follows:
• Money in Turkish Lira in nominal value
• Gold, with current market value
• Foreign Currency, with buying rate of exchange of The Central Bank of Turkish Republic
• Securities and other capital market instruments;
- Common stocks as equities, with stock exchange value if any, if there is not stock exchange value with market value, if this price cannot be specified with buying price, if buying price cannot be specified with nominal value
- Debt instruments such as bill, bond or Eurobond, with stock exchange value if any, if there is not stock exchange value with current market value, , if this price cannot be specified with buying price, if buying price cannot be specified with nominal value
- Investment funds participation certificates, with closing price at relevant market
- Derivative instruments such as forwards and options, with stock exchange value if any, if there is not stock exchange value, with current market value, if this price cannot be specified with buying price, if buying price cannot be specified with nominal value
There is a detailed regulation in the Article 3 of the Annunciation about the charge that shall be taken as a basis in valuation.
4- Nonexecution of Examination, Inspection, Investigation and Prosecution for Tax Audit and Assessment
Article 4th of the Annunciation regulates that there shall not be enforced any examination, inspection, investigation and prosecution, tax penalty and administrative fine about a tax audit and assessment for the ones who benefit from 7th article of the Law due to assets brought to Turkey from abroad and for legal representatives of the ones who did said proceedings because of the act of bringing the assets to Turkey from abroad.
It is regulated in the Annunciation that any tax, levy, fee and fund shall not be applied for these assets, including the imported ones.
Assets brought to Turkey or notifications concerning these shall not be utilized in scope of any examination, inspection or investigation.
Eylül Bengisu Gümüş & Yiğit Parmaksız