International Tax Bulletin: 01.06.2021/11
Turkey Begins Automatic Exchange Of Information Within The Scope Of Multilateral Authority Agreements
In our International Tax Bulletin 2021/8 dated 23.02.2021, it was stated that according to the conclusion reached at said meeting held by EU Council, Turkey has to make sure that it will activate automatic information exchange process with 27 EU member states as of 30 June 2021, and this has to be ascertained until 31 May 2021.
Otherwise, it is indicated that Turkey will be added into EU's Blacklist, which is currently composed of 12 non-compliant countries. The blacklisted countries face only limited sanctions, consisting of freezing them out of European aid or development funding.
In this context, the "Multilateral Competent Authority Agreement on Automatic Information Exchange of Financial Account Information" signed in Paris on 21.04.2017 has entered into force starting from FY2019 taxation year and not later than 03.02.2020 according to the Presidential Decree No. 4025 dated 31.05.2021, published in the official gazette on 01.06.2021. In this regard, it is expected that financial information for FY2019 will be shared with other countries by September 1, 2021, at the latest, and financial information for FY2020 and FY2021 will be shared by September 30, 2021, and September 30, 2022, respectively.
Similarly, the “Multilateral Competent Authority Agreement on Exchange of Country-by-Country Reporting” signed in Ankara on 30.12.2019 has entered into force starting from FY2019 taxation year and not later than 18.12.2020 according to the Presidential Decree No. 4026 dated 31.05.2021, published in the official gazette on 01.06.2021. In this regard, it is expected that CbC Reports of FY2019 will be shared with other countries as soon as possible, and CbC Reports of FY2020 will be shared in the beginning of 2022.
You can access the Presidential Decrees No. 4025 and 4026 from the links below.