Turkey’s Council of Ministers has now ratified the Convention on Mutual Administrative Assistance in Tax Matters (“Convention”), subject to several exclusions. The Convention involves Council of Europe and OECD member states. Its primary purpose is for signatories to exchange information and offer cross-border assistance during tax issues.

Turkey signed the Convention on 3 November 2011 and Parliament ratified it via Ratifying Law number 7018 on 3 May 2017.

Parties to the Convention agree to:

  • Exchange information which is foreseeably relevant for administration or enforcement of domestic laws.
  • Assist during collection of tax debts.

Turkey signed the Convention subject to several reservations where the country reserves the right not to provide assistance regarding:

  • Taxes on income, profits, capital gains or net wealth, imposed on behalf of a party’s political subdivisions or local authorities.
  • Compulsory social security premiums.
  • The following taxes (except customs duties):
  • Estate, inheritance or gift taxes.
  • Taxes on immovable property.
  • Specific taxes on goods and services such as excise taxes.
  • Taxes on use or ownership of motor vehicles.
  • Taxes on use or ownership of movable property (other than motor vehicles).
  • Any other taxes.
  • Taxes in the categories above, which are imposed on behalf of a party’s political subdivisions or local authorities.

Please see this link for the full text of the Convention.

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