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There's a tax amnesty law in this country that benefits people who kept their business / capital activity abroad. For example, you're a 3D designer working for a UK company from this country or you're an investor or a business owner (a pass through entity). You get paid to your non-local account. You don't bring that money back to the country until the government publishes a tax amnesty law. Using that law, you can pay 0-3% percent tax on that money to bring it to the country. If you brought the money into the country without making use of this law, you'd be taxed at 30-45%.

Here's some info about the tax amnesty. (I couldn't find anything in English. If you have Chrome, you can translate it easily by right click in the page)

https://www.pwc.com.tr/tr/hizmetlerimiz/vergi/bultenler/2022/varlik-barisi-genel-tebligi-yayimlandi.html

https://www.ey.com/tr_tr/tax/varlik-barisi-bu-kez-vergili

Note that you don't have to bring this money back to the country (the tax amnesty laws seem to imply that). The government started to publish these laws 14 years ago iirc and it's very likely that they'll keep doing this. The political environment is the same as well as the administration. So if you really want to buy something local like a house or a car, then you can bring it. Otherwise you can just use your foreign credit/debit card for most stuff. You can use foreign brokers to invest in equities and REITs etc.

My question:

Sometimes you need to provide tax statements for other governments when you want to apply for a residence permit for example. Sometimes EU banks require such stuff for KYC purposes. They want to see how much you earned and what % of it was taxes, especially if they require a something like 100K/y for qualification for the permit. They also want to see that you're not a hobo or a criminal :) Because you don't have tax statements to show these governments/institutions, you might want to tell them how taxation & tax amnesties work in this country... assuming they listen (?).

If you tell them how this works, would they think you're doing something shady? Is being in a position to use "varlik barisi" illegal or shady? If it is, you obviously wouldn't want to explain how this works to 3rd party governments. Instead I guess you'd go from 0-3% tax to 45% if you really want that residence permit or other stuff?

sjy
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user46804
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