Turkey plans to lure back capital deposited abroad by Turkish citizens
AA photoAnkara is working on a new cash repatriation law to bring Turkish citizens’ assets abroad back to the country, Finance Minister Naci Ağbal has said.
“We want to encourage our citizens abroad to bring their assets back into Turkey,” Ağbal said in a statement on June 23.
A cash repatriation law came into force in 2008 with the aim of “creating resources for investments that can resolve production, employment and inflation issues, maintain economic revival, provide financial resources to overcome the global economic crisis with minimum damage, and reinforce enterprises’ capital structures.”
Similar regulations were also passed in 2011 and 2013.
“By considering the earlier practices we will introduce a new model, which will be simpler and enhance investors’ trust more easily, encouraging them to bring their money into Turkey in a more comfortable state of mind. We want to lure more assets into Turkey,” said Ağbal.
The authorities will not charge any taxes for these assets.
Through the planned regulation, real persons or companies will need to inform how much money in the form of cash, gold, stocks or other instruments they want to bring in the country to a lender or financial institution until Dec. 31. Previously they did this to tax offices.
Turkish citizens who make reports about their properties abroad will be able to bring the monetary equivalent of these assets in the next 1-year period.
Businesspeople will able to deposit this money into banks, buy properties or launch new companies with it. They can also take this money back abroad if they want.