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New requirement of Ultimate Beneficial Owner filing in Turkey
On 20 July 2021, Turkey’s Ministry of Treasury released a Communique with Serial No. 529 with the goal of identifying the beneficial owners who ultimately profit from the income or wealth of Turkish capital businesses, in order to combat tax fraud and prevent terrorism efficiently.
Corporations must notify the tax authorities if they are operating or in the process of being liquidated as of 1 August 2021. Furthermore, pursuant to Temporary Article 1 of the Communiqué, information on the beneficial owners must be submitted electronically to the Revenue Administration by 31 August, 2021 at the latest.
Notifications that are not submitted electronically will be disregarded.
A penalty under Tax Procedural Law No. 213 will be applied if the beneficial ownership reporting is not complied with, if a notification is misleading or is not complete. The fine is between TL 2,500 – 7,500.