Turkish tax residents holding assets in Switzerland shall be reportable under AEoI by Swiss Financial Institutions.
Under the OECD’s Automatic Exchange of Information (AEoI) a financial institution (bank or broadly any other institution trading in financial assets) in country A that has an investor resident in country B (A and B agreed to exchange information under AEoI) will annually send information to country B on the investor disclosing the investor’s identification information and assets. There are currently over 150 countries that have committed to exchange information in this manner. These are referred to as participating jurisdictions and include Switzerland and Turkey.
Each jurisdiction however has to execute with its partner states to be able to exchange information and make its list of participating jurisdictions publicly available.
Swiss list of participating jurisdictions currently amounts to more than 75 AEoI partner states and recently Swiss Federal Council has decided to extend this network by initiating consultation on the introduction of the automatic exchange of financial account information (AEoI) with 18 further states and territories, including Turkey.
It is intended that Switzerland shall, under the terms of the AEoI agreement, report to Turkey in 2021 for the first time. The reportable information will cover the period starting from 1 January 2020.
Impact on Turkish residents holding assets in Switzerland
Effectively this means that any Turkish tax resident who holds assets in Switzerland shall be reportable under AEoI by Swiss Financial Institutions to Turkey via Swiss Tax Administration by end of June 2021 for the year 2020.
KENDRIS is managing structures set up for Turkish residents. It is one of our main objectives to ensure that any future disclosure under the AEOI is performed in a controlled and precise manner and our clients are updated at each stage of the reporting process.
We respect our clients’ privacy and have therefore developed an in-house AEoI platform that complies with global regulations. To reduce compliance costs for our clients, we have integrated our risk management, accounting, due diligence and reporting systems.
Our dedicated Turkey team creates success for Turkish private and corporate clients as well as family offices with smart structuring and advisory solutions – today and in future.