In accordance with the Communiqué on Tax Procedure Law
No. 529 published on the Official Gazette dated July 13, 2021; it has become
obligatory to declare the "real beneficiary" for legal entities and other
organizations.
1. The
scope of the Communiqué
In order for the
"real beneficiary” (ultimate beneficial owner) information of legal
entities and other certain organizations to be determined in an up-to-date,
complete and accurate manner; Tax Procedural Law Communiqué No. 529 entered
into force, determining the scope of the taxpayers who are obliged to notify
with respect to the determination and notification of the real beneficiary, the
form of the notification, the time of notification, the method of sending the
notification, as well as the application of other procedures and principles.
2.
Definition of the real beneficiary
The term “real beneficiary” refers to the individuals
who ultimately control or have ultimate influence over legal entities or other organizations.
3. Those
who are obliged to report
The real beneficiary information notification shall be
made by the followings.
·
Corporate taxpayers,
·
The person authorized to represent the company or the
partner in the collective companies, one of the limited partners in the
anonymous limited partnerships and the person with the highest shareholding ratio
for the ordinary partnerships, the manager of the trusts and similar
organizations established in a foreign country whose management center is in
Turkey or whose manager resides in Turkey
On the other hand; banks, bank and credit card
institutions, authorized institutions specified in the foreign exchange
legislation, financing and factoring companies, intermediary institutions and
portfolio management companies, payment institutions and electronic money
institutions, insurance, reinsurance and pension companies, financial leasing
companies, notaries, lawyers, certified public accountants, independent audit
firms and some other individuals and institutions, upon request by the Revenue
Administration, shall submit the real beneficiary information of the
transactions carried out by their clients to the Revenue Administration.
4. Identification of real beneficiaries
For legal entities, the followings will be considered
as the real beneficiary.
·
Individual shareholders who own more than twenty-five
percent shares in the legal entity,
·
If it is suspected that the individual shareholder holding
more than twenty-five percent shares of the legal entity is not the real
beneficiary or if there is no individual shareholder holding such shares, the
real person or persons who ultimately control the legal entity,
·
In cases where the beneficial beneficiary cannot be
determined as above, the real person or persons with the highest executive
power.
In entities such as unincorporated business
partnerships;
·
The individual or individuals who ultimately control
the unincorporated entities,
·
In case the
real beneficiary cannot be determined as above, the individual or individuals
with the highest level of executive power before the unincorporated entity,
will be considered as the real beneficiary and will be
subject to notification.
In Trust and similar organizations; those who hold the
title of founders, trustees, managers, auditors or beneficiaries or those who
have influence over these organizations will be considered as real
beneficiaries and will be subject to notification.
5. Period of notification and time of submission
Corporate taxpayers, who are obliged to report, will
submit their real beneficiary information in the annex of their advance
corporate income tax returns and annual corporate income tax return.
Other taxpayers and other persons are obliged to
submit the real beneficiary information to the Revenue Administration in
electronic form by the end of August of each year.
6. Form of notification
Corporate taxpayers will make a notification in the
annex of their annual and advance tax returns, and taxpayers other than
corporate taxpayers and other persons who need to make a notification will make
a notification with a separate notification form.
In the notifications, the real beneficiary's name,
surname, citizenship, identity numbers and addresses, telephone, fax and e-mail
information, if any, shall be declared.
Taxpayers and other persons included in the scope are
required to obtain a user code, password and password from the tax office they
are affiliated with. Paper form (by hand or by post) will not be accepted.
7. Other Considerations
The information subject to the real beneficiary
information notification must be kept by the taxpayers for 5 years starting
from the beginning of the calendar year following the date of the notification.
The relevant penalty provisions of the Tax Procedure
Law No. 213 will be applied to the taxpayers who do not report the information
required to be reported within the scope of the regulations made in the said
Communiqué, and make incomplete or misleading notifications.
8. Initial notification
The first notification for the real beneficiary
information shall be made electronically to the Revenue Administration until
August 31, 2021.
The said Communiqué entered into force on the date of
its publication.
Regards,