Tax News Update    Email this document    Print this document  

June 15, 2021
2021-1185

Turkey sets effective date for Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information

Turkey signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA or Agreement) on 21 April 2017. Turkey subsequently approved the MCAA on 31 December 2019.

According to the Agreement, the signatory countries agree to share the financial account information of the residents of the relevant country, which is collected from the financial institutions every year automatically without any request.

Turkey committed to share financial information regarding fiscal year (FY) 2019 with European Union (EU) Member States1 at the end of FY2020. Turkey was required to adopt laws by the end of 2020 to automatically exchange tax information with EU Member States.

However, the EU Council, in a meeting on 22 February 2021, extended the deadline for Turkey to fully comply with the automatic exchange of information procedures. Specifically, Turkey was requested to activate its automatic information exchange process with EU Member States as of 30 June 2021, and this had to be ascertained by 31 May 2021.

Accordingly, on 1 June 2021, Turkey’s Presidential Decree No. 4025 set the effective date of the Agreement as 3 February 2020 to be applied to taxation periods starting from 1 January 2019 at the earliest.

_________________________________________

For additional information with respect to this Alert, please contact the following: 

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

_________________________________________

ENDNOTE

  1. Excluding Austria, Belgium, France, Germany and the Netherlands.
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement