Turkey Introduces Beneficial Ownership Requirements for Taxpayers

Combating Money Laundering and Terrorist Financing

In a bid to combat money laundering and terrorist financing, Turkey has introduced beneficial ownership requirements for taxpayers. The new requirement aims to ensure that the true beneficial owners of companies, trusts, and other entities are identified and reported to the authorities.

Who is Affected by the New Requirement?

The new requirement applies to a wide range of taxpayers, including:

• Corporate income taxpayers
• Entities deemed liable under the Law on the Prevention of Laundering Proceeds of Crime (Law No. 5549), such as banks, insurance companies, and investment partnerships
• Branches, agencies, representatives, and similar subordinate units of foreign-based taxpayers

How to Submit the Beneficial Ownership Declaration?

The beneficial ownership declaration must be submitted electronically by all taxpayers and other persons by August 31, 2021, at the latest. Corporate income taxpayers will attach the UBO declaration to their annual tax return, while other taxpayers will upload an electronic declaration form on the Turkish Revenue Administration website.

Options for Submitting the Declaration

Taxpayers may choose to submit the declaration themselves or through a:

• Certified public accountant who has an intermediation and responsibility agreement
• Sworn-in certified public accountant with an income or corporate tax return approval agreement

Purpose of the New Requirement

The new requirement is part of Turkey’s efforts to combat financial crimes and maintain transparency in its financial system. It aims to ensure that the true beneficial owners of companies, trusts, and other entities are identified and reported to the authorities.

For More Information

For more information on this development, please contact NAZALI TAX & LEGAL.