Administrative sanctions for those who do not file income tax – Last Minute Economic News

Administrative sanctions for those who do not file income tax – Last Minute Economic News


In accordance with the Income Tax Law, dividends, interest and similar income obtained due to cash capital or values ​​​​represented in money are considered within the scope of movable capital income.

Income from movable capital is declared by taking into account issues such as the nature and amount of the income obtained and whether it is subject to withholding (deduction).

Final taxation is made as withholding on interest on deposits obtained from banks and dividends paid by participation banks. Therefore, there is no need to submit an income tax return.

If the dividends obtained from full taxpayer companies that are liable for all types of taxes exceed 150 thousand liras, a declaration must be filed for them.

On the other hand, if income such as interest, repo and dividends obtained from abroad exceeds 8 thousand 400 liras, all of these incomes are required to be declared.


The Revenue Administration carries out analysis and auditing studies on data obtained from various sources both domestic and abroad.

Various agreements are being made that allow information sharing between tax administrations around the world in order to combat the informal economy and tax evasion. As a result of the efforts of the Organization for Economic Co-operation and Development, G20 and the European Union to prevent tax loss and evasion and to ensure transparency in tax practices, the “Convention on Mutual Administrative Assistance in Tax Matters” was established.

The agreement, to which 147 countries are parties, including EU member states, was signed by Turkey in 2011 and came into force in 2018.


Accordingly, information about the account owner, year-end account balance, income such as interest and dividends paid to the account during the year, or gross amounts of income obtained from assets held in the account are shared between countries.

Within the framework of the agreement in question, information regarding Turkish residents from 82 countries was received.

Similarly, within the scope of the agreement signed with the United States, payments such as interest and dividends made to the accounts of a Turkish resident in this country are reported to the Revenue Administration.


With the information received from other countries within the scope of the international agreements in question, the Revenue Administration closely monitors those who earn wage income from abroad, income from securities and capital gains.

As a result of the analysis and audit studies carried out in this context, it was determined that taxpayers who are residents of Turkey and earn income such as interest, repo and dividends from abroad are required to submit an income tax return.

After the end of the income tax declaration period, which will continue until the end of Friday, April 5, the Presidency will mutually check the declarations and incomes of taxpayers who earn income from abroad.

People who earn income but do not submit any returns or declare incomplete income will be reported to the relevant tax offices for penalties.


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