The Turkish Ministry of Finance (“Ministry”) has expanded the scope of the Pre-prepared Leasing Statement System (“System”), which has been in effect since 2012 for real estate income statements. The system is now also available for salary and security income, as well as other revenues. The system prepares statements and submits these for taxpayer approval. The Ministry published the General Communiqué on Tax Procedure Law number 470 (“Communiqué”) in Official Gazette number 29635 on 25 February 2016, entering into effect on 1 March 2016.

The System’s main purpose is to ensure that tax statements are prepared and submitted in a fast, easy, economic, reliable and accurate manner. It is intended to increase voluntary compliance levels by decreasing tax compliance costs. It also ensures efficiency by simplifying actions and transactions conducted at tax offices.

Key aspects of the System include:

  • The System will begin implementation during the declaration period for revenues generated in 2015.
  • Taxpayers can only use the System if their income derives exclusively from salary, rental or security income, and/or other revenues and income (as this phrase is defined in tax legislation). Taxpayers cannot use the System if they also earn income from commercial or agricultural activities, as well as self-employment.
  • The System prepares tax statements according to a taxpayer’s income type, using information from data warehouses, as well as from other institutions and organizations.
  • Once prepared, tax statements are electronically submitted to the taxpayer for approval, including tax and accrual information.
  • Correction statements for previous years can only be submitted via the System for rental income. Taxpayers must apply to the tax office if the correction statement includes any salary, security income or other revenues and income.
  • Tax statements in relation to the rental income generated before 2015 can be submitted through the System. However, tax statements in relation to salary, security income and other revenues and income generated before 2015 must be submitted to tax offices until an the Administration makes an announcement on its website (gib.gov.tr). Following the announcement, those statements can also be submitted through the System.
  • Taxpayers must check and (if necessary) correct these tax statements. Taxpayers will be liable for the contents of approved statements.
  • Taxpayers can access the System on the Revenue Administration’s official website (gib.gov.tr), along with detailed information and announcements about the System.

The Communiqué revokes the General Communiqué on Tax Procedure Law number 414, published in Official Gazette number 28208 on 18 February 2012.

Please see this link for the full text of the Communiqué (only available in Turkish).

Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.