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2018/3 Decree of Council of Ministers Regarding "Convention on Mutual Administrative Assistance in Tax Matters" Comes Into Force as of July 1, 2018
27.6.2018

Convention on Mutual Administrative Assistance in Tax Matters which aims to provide administrative assistance globally while combatting with tax avoidance and evasion, is now coming into force as of 1 July 2018 according to the Decree of Council of Ministers numbered 2018/11790.

Abstract

It is aimed to increase co-operation among OECD members when combatting with tax avoidance and evasion by the Convention on Mutual Administrative Assistance in Tax Matters which has signed on 3 November 2011 at Cannes.

The Convention stated above was confirmed as "acceptable" together with its drawbacks and declarations of Republic of Turkey by the Law numbered 7018 which has published and came into force with 20 May 2017 dated 30071 numbered Official Gazette. In addition to this, as there is an international agreement taken into consideration referring to Article 3 of the Law numbered 244, it is also decided that the Convention has been approved as "acceptable" by the Decree of Council of Ministers on 30 October 2017.

Finally above mentioned Convention is now coming into force as of 1 July 2018by the Decree of Council of Ministers numbered 2018/11790 which is published on 26 June 2018 dated and 30460 dated Official Gazette,.

It is now applicable to provide administrative assistance between countries in tax matters through automatic exchange of information and documentation. By the help of this process which is also called as Common Reporting Standards (CRS), annual information regarding to financial accounts kept by foreign country residents and organizations they control at financial institutions in Turkey, should be submitted to the Turkish Tax Authority.

In this regard, Revenue Administration has previously shared a "Guidance Regarding Residence and Due Diligence" with financial institutions. This guideline determines principles and procedures that should be applied by Turkish financial institutions before the first submission date of 30 June 2018.

Please find below main subjects outlined on guideline;

  • Definition of financial institutions, financial account and other out of scope issues,

  • Review and due diligence methods applicable to customer accounts which are on boarded before or after 30 June 2017,

  • Providing self-declaration forms and relevant information from customer,

  • Customer information and thresholds of customer account which is subject to reporting,

  • Participant country list as of 30 June 2017 (please refer to the attachment)

Should you have any queries please contact to us.

Decree of Council of Ministers Regarding "Convention on Mutual Administrative Assistance in Tax Matters" Comes Into Force as of July 1, 2018​