Further Income Tax Regulation in Relation to Tax Amnesty

In order to implement Articles 13 and 18 of Law No. 11 of 2016 on the Tax Amnesty (“Tax-Amnesty Law”) the government has issued Regulation No. 36 of 2017 on Certain Incomes in the Form of Net Assets which Are Treated or Considered as Income (“Regulation 36/2017”).Regulation 36/2017 sets out a number of provisions which address the imposition of and amounts of income tax for individuals and companies (‘Taxpayer”) who have either participated or have not participated in the tax-amnesty programTaxable IncomePursuant to the Tax-Amnesty Law, any Taxpayers who wished to participate in the tax-amnesty program were required to submit their applications to their local Tax Service Office. These applications had to disclose the Taxpayers’ assets in declaration letters (“Declaration Letter”) and also effect payments of the appropriate ransom fees. Upon receiving a tax-amnesty approval statement (“Tax Statement”), any disclosed assets were then exempted from the imposition of any income tax.As a consequence of this, the assets of any taxpayers who did not participate in the tax-amnesty program or who failed to disclose valid Declaration Letters are now to be subject to income tax under Regulation 36/2017. The taxable-income criteria are outlined below: [1]