Cash repatriation code draws back $5.2 billion

ANKARA – Anadolu Agency

Some 10.5 billion Turkish Liras ($5.2 billion) of capital has returned to Turkey and 209 million liras of the capital have been taxed until now, using the framework of the latest cash repatriation program, Finance Minister Mehmet Şimşek said yesterday.

Parliament passed a series of laws late on May 21, one of the most significant of which, in terms of the economy, was a law on cash repatriation. Under the legislation, Turks pay just 2 percent on eligible funds, avoiding taxes that could otherwise reach 30-40 percent.

The code says individual and corporate persons will declare their money, gold, exchange, property and other capital market instruments abroad, which they own as of May 29, 2013, to the tax offices by Oct. 31, 2013, or to the intermediary institutions and banks.

Şimşek said some 69.8 billion liras of assets were declared in this period, 1.3 billion liras were accrued and 209 million liras were taxed. The amount of capital that was declared, returned to the country and taxed is 10.5 billion liras, he noted. While 90.4 percent of assets were declared to the tax offices, 9.6 percent of them were declared to banks and intermediary institutions, he said.