Istanbul Chamber of Certified Public Accountants
Announcement
COLLECTIVE COMPANIES, ORDINARY PARTNERSHIPS, AND NON-SHAREHOLDING LIMITED PARTNERSHIPS WILL SUBMIT THE “BENEFICIAL OWNER NOTIFICATION FORM” AGAIN BETWEEN 01.08.2024 AND 31.08.2024
31.07.2024
Dear Member,
According to the General Communiqué No. 529 of the Tax Procedure Law, taxpayers other than CORPORATE TAXPAYERS and other persons are required to resubmit the information regarding the beneficial owner electronically through the Revenue Administration INTERNET TAX OFFICE system by the end of August each year.
Collective Companies, Ordinary Partnerships, and Non-Shareholding Limited Partnerships, which are not subject to Corporate Tax, submitted their first forms on 31/08/2021. Since these taxpayers cannot update their information via the provisional tax return, they are required to resubmit the form electronically to the Revenue Administration by the end of August each year in accordance with Article 6 (2) of the General Communiqué No. 529 of the Tax Procedure Law.
The Notification Form should be submitted by:
a) In Collective Companies, the person authorized to represent the company or a partner,
b) In Non-Shareholding Limited Partnerships, one of the general partners,
c) In Ordinary Partnerships, the partner with the highest share.
The Beneficial Owner Notification Form will be submitted through the GIB INTERNET TAX OFFICE system as before, by 31.08.2024.
Taxpayers must log in using their GIB internet tax office password. In the “Other Notifications and Information Entries” section, the “Beneficial Owner Notification Form” should be completed. Explanatory information is available in the “Details on the Beneficial Owner Notification Form” section.
In the form, the following fields must be filled out:
TYPE: Select the taxpayer group (Collective Company / Non-Shareholding Limited Partnership / Ordinary Partnership)
YEAR: 2024
MONTH: AUGUST
COUNTRY: T.C.
Province, district, address information, and the relevant fields in the form must be completed.
Other institutions and individuals listed in 4 (2) of the General Communiqué will only submit the form if requested by GIB.
In other words, these individuals and institutions (including SM, SMMM, and YMM) will NOT submit the “Beneficial Owner Information Notification Form” unless requested by GIB.
PENALTY ENFORCEMENT:
According to General Communiqué No. 529 of the VUK, taxpayers who fail to submit the form, or submit incomplete or misleading information, will be subject to the penalty provisions of Law No. 213. The penalty enforcement has been amended as follows:
With the Law No. 7417 published in the Official Gazette No. 31887 dated 05/07/2022, paragraph (9) was added to Article 257 of Law No. 213 of the VUK. The added paragraph is below:
- (Added by Article 26 of Law No. 7417. Effective: 05.07.2022) To determine the scope of beneficial owners for legal entities and non-legal entity organizations, to mandate the submission of beneficial owner information, to determine the content, format, standard, submission period, and method of the notification, to make changes in these, to mandate the electronic storage and presentation of such information and notifications, and to determine other procedures and principles related to the implementation.
Failure to comply with the above provision will result in a Special Irregularity Penalty under Article 355 of Law No. 213, multiplied by three, for those who do not fulfill the beneficial owner notification and storage obligation introduced in paragraph (9) of Article 257 of the VUK.
NO NEW ACTION REQUIRED FOR CORPORATE TAXPAYERS
Corporate Taxpayers will continue to update their information via the provisional tax returns. The above penalty enforcement also applies to Corporate Taxpayers.
Corporate Taxpayers include:
- -Capital companies: Joint-stock companies, limited liability companies, and limited partnerships divided into shares established under the provisions of the Turkish Commercial Code No. 6762,
- -Cooperatives,
- -Economic enterprises owned by associations or foundations,
- -Joint ventures,
- -Other taxpayers listed in Article 2 of the Corporate Tax Law (KVK).
For these legal entities:
a) Real persons who hold more than 25% of the shares of the legal entity,
b) If it is suspected that the real person holding more than 25% of the shares is not the beneficial owner, or if there is no real person holding such shares, the real person(s) ultimately controlling the legal entity,
c) If the beneficial owner cannot be determined under (a) and (b), the real person(s) with the highest executive authority (Chairman of the Board or the person(s) authorized to sign) will be considered the beneficial owner and must be reported.
Corporate Taxpayers required to submit notifications must provide beneficial owner information with their provisional and annual corporate tax returns.
If there is a change in the information previously reported or a new taxpayer registration is established, the change or registration must be reported within one month of the occurrence.
The form cannot be submitted using the password of a professional accountant. The company’s authorized person or the person filling out the form must be listed in the “prepared by” section. The information of the professional accountant must NOT be included.
Source: Istanbul Chamber of Certified Public Accountants
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