International Tax Bulletin: 15.02.2022/4
Agreement on Automatic Exchange of Country-by-Country Reporting (“CBCR”) Between Turkey and USA Approved by Presidential Decree
The Agreement on Automatic Exchange of Country-by-Country Reporting (“CBCR”) between Turkey and USA approved by Presidential Decree published in official gazette on 14.02.2022.
The “Agreement on the Exchange of Country-by-Country Reporting between the Competent Authority of the Republic of Turkey and the United States of America”, signed in Ankara on 17.11.2021, was approved by the Presidential Decree dated 13.02.2022 and numbered 5191 published in the Official Gazette dated 14.02.2022.
With the agreement, it is aimed to exchange CBCR for fiscal years starting on or after 01.01.2019. CBCR will be automatically exchanged through a common schema using XML, as in exchanges with other countries.
In this context, subsidiaries of US-based companies in Turkey will no longer file CBCR in Turkey. It will be sufficient for them to declare that the reporting will be done by the parent company located in the USA with a CBCR notification in June.
Click here to access the said Presidential Decree and the Agreement in Turkish and English.