NEWSLETTER-2019-metin

311 TAX LAW mination of their current income, and may withdraw these assets from their enterprise without including them in the determination of their taxable income or distributable income. Individuals and legal entities can utilize the abovementioned as- sets until 31 December 2019 to close loans from banks and financial institutions abroad and which are recorded in taxpayers’ legal books as of 19 July 2019. Assets used to repay loans may benefit from this provision without being brought into Turkey if they are removed from the legal books. If the capital advances that have been recorded in the taxpayers’ legal books as of 19 July 2019 are compensated by bringing money, gold, foreign exchange, securities and other capital market instruments held abroad into Turkey prior to 19 July 2019, taxpayers may benefit from the provision if the capital advance amounts are removed from the legal book entries. Banks and intermediary institutions will levy tax at the rate of 1% on these assets. The banks and intermediary institutions are re- sponsible for declaring and paying the tax to their tax office through a tax return by the end of the 15th day of the month following the notification. The 1% tax cannot be recorded as an expense, nor may it be offset from other taxes. Losses arising from the disposal of assets brought into Turkey cannot be considered an expense nor deduction for income and corporate income tax purposes. Assets in Turkey Due to the fact that the tax amnesty regulated in relation to the assets in Turkey is, in principle, related to the recording of the re- ferred assets, only income and corporate taxpayers may benefit from the referred provisions. Income and corporate income taxpayers may declare to the tax authorities their money, gold, foreign exchange, securities, other capital market instruments and immovable held in Turkey, which are not recorded in their legal books by 31 December 2019. These assets may be recorded into the taxpayers’ legal books without being taken into consideration when determining their current income by 31 December 2019. These assets may also be withdrawn