Corporate Taxpayers, Some Persons and Institutions Are Required to Provide Ultimate Beneficial Owner Notifications Via New Regulation

With the "Tax Procedural Law General Communiqué numbered 529" published in the Official Gazette dated 13.07.2021, it is obligatory to give notification regarding Ultimate Beneficial Owner (“UBO”) information to following persons and institutions who are active as of 01.08.2021 (including those whose liquidation process continues):

• Corporate taxpayers
• Person or partner authorized to represent the company in collective companies,
• One of the limited partners in limited partnership companies,
• Person with the highest shareholding on behalf of ordinary partnerships,
• Managers, trustees or representatives of trusts and similar organizations established in a foreign country that have their headquarters in Turkey or have a resident manager in Turkey

“Ultimate Beneficiary Owner” refers to the natural person or persons who ultimately control or have ultimate influence over legal persons or unincorporated entities.

In addition, many institutions (especially banks and financial institutions) and their branches, agencies, representatives, commercial proxies, and similar affiliated units will be required to notify the Revenue Administration regarding the ultimate beneficial owner information of the transactions carried out by their customers, when requested by the Administration.

All taxpayers and other persons, including corporate taxpayers, will submit their first notifications by filling out the "notification form regarding the ultimate beneficial owner" electronically via the Internet Tax Office until the end of 31.08.2021 at latest.

Subsequent notifications will be made by the corporate taxpayers in the annex of the provisional tax returns and the annual corporate tax return.

Other taxpayers and other persons other than corporate taxpayers will submit their notifications to the Revenue Administration until the end of August each year electronically with a "notification form regarding the ultimate beneficial owner".

Since the notification must be sent electronically, the notifications sent on paper will not be accepted in any way, and the notifications sent outside the electronic environment will be deemed not given.

The notification form can be sent personally by the taxpayer, or it can also be sent via CPAs who have an intermediation and responsibility agreement, or via sworn-in-CPAs who have an income or corporate tax return certification agreement (full certification agreement).

The relevant penalty provisions of the Tax Procedure Law will be applied to the taxpayers who do not make the necessary notifications or who provide incomplete or misleading information in said notifications.

You may access original document regarding aforementioned communique via this link.

Kind Regards.