Turkey
Overview of CbC reporting requirements
Turkey has implemented the BEPS Action 13 (CbC reporting) minimum standard with four recommendations for improvement.
First reporting fiscal year: Commencing on or after 1 January 2019
Consolidated group revenue threshold: EUR 750 million
Filing deadline: 12 months following the end of the reporting fiscal year
The domestic legal and administrative framework
Turkey’s 2019/2020 peer report recommended that Turkey take steps to amend its legislation or otherwise bring the definition of Constituent Entity into line with the standard. Turkey has issued a Ministerial Communiqué making this amendment and the recommendation is removed.1
Turkey’s 2019/2020 peer report recommended that Turkey take steps to clarify that the annual consolidated group revenue threshold calculation rule applies in line with the OECD guidance on currency fluctuations in respect of an MNE Group whose Ultimate Parent Entity is located in a jurisdiction other than Turkey. Turkey has issued a Ministerial Communiqué making this clarification and the recommendation is removed.
The exchange of information framework
Turkey’s 2017/2018 peer review recommended that Turkey take steps to have qualifying competent authority agreements in effect with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions and with which Turkey has an international exchange of information agreement in effect that allows for the automatic exchange of tax information. Agreements are now in effect and this recommendation is removed.
It is recommended that Turkey take steps to have the necessary processes and written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework. This recommendation remains in place since the 2018/2019 peer report.