Noutăți legislative
Ecovis Beijing advises legal representatives, board members or company managers on how to meet compliance regulations in China. Every limited liability company registered in China must have a legal representative who represents the company in the exercise of its rights and obligations. This position comes with numerous powers and responsibilities. A legal representative is granted
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Canada’s adoption of the Multilateral Instrument (MLI), as part of the Base Erosion and Profit Shifting initiative, comes into force on 1 December 2019. The introduction of the MLI amends a significant number of Canada’s tax treaties which will affect: Withholding taxes, beginning 1 January 2020 Other taxes, for taxation years beginning on or after
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The Peruvian tax authority, SUNAT, requires that legal entities and legal companies submit Ultimate Beneficial Owner (UBO) information. Among other things, this is to prevent tax avoidance, money laundering and the financing of terrorism. This regulation also allows Peru to comply with its obligations concerning mutual administrative assistance in tax matters. The Supreme Decree 003-2019-EF
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From the content of the magazine: Auditor’s role: creating value with information; Opinion on US tax reform Uruguay implements preventive measures against money-laundering And more 2019 Issue 04 English
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From the content of the magazine: Going Out of America Worforce in Paraguay Graylisted: Panama Etc 2019 Issue 03
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This year has seen substantial changes in British immigration law, and there is more in the pipeline. In this article we examine the changes so far and explain their implications. The major changes include the full implementation of the EU Settlement Scheme, new visa routes for start-ups and innovators, and crucial updates to the Tier 2 shortage
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As global economics have prospered due to increasing cross-border trade and international business transactions, the US government has introduced new tax regulations governing how these transactions are accounted for. Here is a description of two of the many forms now required to be filed by taxpayers with foreign business transactions or foreign related parties. These
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Changes to be navigated by Ecovis UK over the coming years ECOVIS Wingrave Yeats recently registered as a non-US registered firm with the Public Company Accounting Oversight Board (PCAOB) in order to ensure that our UK audits meet the needs of all stakeholders in future. Luckily, we have a culture of embracing change at Ecovis
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The US fashion brand Supreme wins trademark rights in China In the western part of the world, China is notorious for manufacturing and selling counterfeit branded products. This raises the question of whether it makes any sense to register a trademark in a country like China. A trademark is primarily used to market products and
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Article 13 of Turkish Value Added Tax Law No. 3065 provides VAT exemptions on certain goods and services. Consequently, the first delivery of a home or office shall be exempt from VAT for Turkish citizens abroad and non-resident real or legal persons.
Although the law has been in force for two years, many investors are unaware that they can benefit from tax relief. Ecovis shows the conditions and the procedure for foreigners wishing to invest in Turkey and take advantage of the tax relief.
In order to benefit from the exemption, the buildings must have a construction license and be delivered in turnkey condition. Authentication of the actual delivery is not sought in the delivery of homes or offices where property ownership is established. “First delivery” means the first sale of the buildings following their construction. If the buildings are purchased second hand, then the exemption does not apply.
This exemption applies to:
Buyers who meet the conditions of the exemption may purchase more than one home or office under the exemption. Turkish citizens wishing to benefit from the exemption should meet all the conditions below:
“Foreign national” means a person who does not have a citizenship connection with the Republic of Turkey under the provisions in Article (3/1-d) of Law No. 5901 (3/1-d). Those who have a residence address in Turkey and those who have resided in Turkey permanently in a calendar year (temporary absence does not affect the residence time in Turkey) are considered to have settled in Turkey.
Payment Terms
In order to benefit from the exemption, 50% of the purchase value of the building must be brought into Turkey by the buyer in foreign currency before the billing date, and the remaining amount within one year at the very latest, explain the Ecovis experts. A bank receipt is considered proof of payment. It is also possible to make payments with a credit card issued by an overseas bank. The amounts collected by credit card must be documented with receipts or written confirmation from the bank in Turkey.
Should the buyer physically bring the amount of foreign currency into Turkey, he/she needs to document the amount of that currency with a certificate from the customs directorate. After the foreign currency has been physically brought into Turkey, it can be delivered to the seller in Turkish lira. Note that transactions made with foreign currencies brought into Turkey before March 8, 2017 are not eligible within the scope of this exemption.
Those making sales within the scope of this exemption must inform the directorates of the land registry that sale of the home or office was made exempt from VAT within the scope of Article (13/i) of Law No. 3065. Where the exemption was wrongly applied in the absence of the conditions stipulated in Article (13/i) of Law No. 3065, the taxpayer and buyer shall jointly be responsible for any tax not collected in time, loss of tax penalty and default interest.
Author:
Mustafa Bulut, Partner, Sworn in CPA, Chief Auditor, ECOVIS Diplomat Denetim ve Yeminli Mali Müşavirlik A.Ş., Izmir, Turkey
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