20-Year Income Tax Exemption on Foreign-Source Earnings and Income
Legal Eligibility and Exemption Certificate Process for Individuals Settling in Türkiye
Under the provision added to the Income Tax Law by Law No. 7582, the earnings and income obtained outside Türkiye by individuals who are considered resident in Türkiye by meeting certain conditions may be exempt from income tax for twenty years.
Canaydın Law Firm provides services in the preliminary legal eligibility review for the exemption, the legal coordination of the Exemption Certificate application, and the assessment of the relationship between residence, citizenship and tax residency.
- Preliminary Legal Eligibility Review
- Exemption Certificate Application Coordination
Basic Legal Assessment for the Exemption
01 — Residency Status in Türkiye
The applicant must be considered resident in Türkiye, and the conditions relating to the period in which the exemption can be applied must be met.
02 — Review of the Previous Three Calendar Years
It is examined whether the applicant had domicile and tax liability in Türkiye during the last three calendar years before being considered resident in Türkiye.
03 — Scope of Foreign-Source Earnings and Income
The exemption applies to the earnings and income that a person who meets the conditions obtains outside Türkiye. The source and legal nature of the income must be assessed in the specific file.
04 — Exemption Certificate Application
A person who wishes to benefit from the exemption must apply to the competent tax office to obtain the Exemption Certificate for Earnings and Income Obtained from Abroad.
Before the application, it is important to check residency and past tax records against documents.
05 — The Relationship Between Residence, Citizenship and Tax Residency
A residence permit or Turkish citizenship and residency under tax legislation are not the same legal concept. The applicant's immigration and citizenship status and tax residency are assessed together but as separate legal matters.
For Whom Can the Exemption Be Considered?
This provision comes into play particularly for individuals who are newly settling in Türkiye and who meet the conditions required by the Law and the Communiqué with respect to the previous three calendar years.
The applicant's being a foreign citizen or holding a residence permit in Türkiye is not, by itself, sufficient for the exemption.
What We Do for You
Preliminary Legal Eligibility Review
The applicant's residency status and the basic conditions relating to the previous three calendar years are examined.
Review of Records and Documents
The documents on residence, tax liability and current status are assessed from a legal perspective.
Exemption Certificate Application Coordination
The legal documentation and procedural process of the Exemption Certificate application to be made to the competent tax office is coordinated.
Assessment of the Residence and Citizenship Link
The legal relationship between the residence permit, citizenship and tax residency is examined in the specific file.
Coordination with the Financial Advisor / Tax Advisor
Necessary coordination is provided with an independent financial advisor or tax advisor for tax calculation, declarations and financial practices.
How the Process Works
- 01
Review of the Current Status
Residence, residency and the current tax situation in Türkiye are assessed.
- 02
Check of the Previous Three Years
The domicile and tax liability records for the previous three calendar years are examined.
- 03
Eligibility Assessment
It is assessed whether the basic conditions in the Law and the Communiqué are met in respect of the file.
- 04
Exemption Certificate Application
The necessary documents are prepared and the application process is coordinated from a legal perspective.
- 05
Coordination of the Subsequent Tax Process
The financial procedures linked to the application of the exemption are carried out together with an independent financial advisor or tax advisor.
Scope of Tax Services
Canaydın Law Firm's service is limited to assessing legal eligibility, preparing the necessary legal documents and coordinating the Exemption Certificate application process.
You may contact Canaydın Law Firm to assess your eligibility for the 20-year income tax exemption on foreign-source earnings and income and for the legal coordination of the Exemption Certificate application process.
FAQ
Frequently Asked Questions
Who can benefit from the 20-year exemption on foreign-source earnings and income?
The exemption may be considered for people who meet the residency and previous-period conditions set out in the legislation. The legal eligibility and Exemption Certificate process is examined; tax calculation and declaration procedures are carried out by an independent financial advisor or tax advisor.
Contact
Request a Legal Assessment
You may contact Canaydın Law Firm for the preliminary eligibility review, the Exemption Certificate application and the legal coordination of the process.