NEWSLETTER-2019-metin

312 NEWSLETTER 2019 from the enterprises without including them in the determination of their taxable income or distributable income. The assets declared to the tax authorities will be subject to tax at the rate of 1% on the asset value, which must be paid by the end of the month following the declaration. Tax at the rate of 1% cannot be recorded as an expense, nor may it be offset from other taxes. Losses arising from the disposal of assets recorded in the legal books can- not be considered an expense or deduction for income and corporate income tax purposes. No Tax Investigation and Assessment No tax inspection and assessment will be carried out in relation to the assets notified or declared within the Tax Amnesty. In order to benefit from the referred provision, (i) the tax levied on the amounts declared or notified should be paid by the due date and (ii) taxpayers notifying of their foreign assets are required to move them to Turkey, or transfer them to an account to be opened at a bank or intermediary in Turkey, within three months as of the notification date. Conclusion The month of July 2019 was a very busy period in terms of tax legislation. Especially taking into account the automatic informa- tion exchange applications, we believe that the provisions of the Tax Amnesty in relation to the repatriation of foreign assets should be evaluated by the relevant taxpayers. Additionally, entities engaged in the tourism sector should be prepared for the new financial obligation identified as the “tourism share.”