You may have heard that Turkish Citizens who acquired citizenship in countries that do not accept dual citizenship are asked to leave their Turkish Republic Passports. There is a practical application developed to protect the existing rights of those born in Turkey who have to renounce their Turkish citizenship both against this and for various reasons.
WHAT IS BLUE CARD?
Blue Card is an official document issued by the Republic of Turkey Ministry of Interior General Directorate of Population and Citizenship Affairs, pursuant to Article 28 of the Turkish Citizenship Law no.
In addition, persons within the scope of the article will be given an identification number by the Ministry and this identification number can be used by the relevant person in places where the Republic of Turkey identification number is sought. On the other hand, the records of people who are Turkish citizens by birth registered in the MERNIS database but lose their Turkish citizenship by obtaining a permission to leave, are transferred to the Blue Card Holders Register without changing the Turkish Republic ID number. The submission of the Blue Card is sufficient to exercise the rights described above.
WHERE AND HOW TO GET A BLUE CARD?
53 of the Regulation. As stated in the article, the Blue Card is issued by foreign representative offices abroad and provincial directorates in the country. To get a Blue Card; A petition stating the request, two photographs and an identity document or passport showing that he/she is a foreign citizen are applied to the application authorities.
WHAT ARE THE RIGHTS OF BLUE CARD OWNERS?
Persons registered in the Blue Card Register do not have the right to elect and be elected, to import vehicles or household goods with exemption, and to do their military service. The acquired rights of these persons regarding social security are reserved and they are subject to the provisions of the relevant laws in the use of these rights.
Persons registered in the Blue Card Holders Registry cannot hold primary and permanent public service positions based on a staff and subject to the public law regime. However, they can be employed as workers, temporary or contracted personnel in public institutions and organizations. Blue Card holders have the right to be treated like Turkish citizens, with the limited exceptions mentioned. Namely; Those registered in the Blue Card Holders Register by acquiring a Blue Card are obliged to declare all kinds of population events to the civil registration offices in the country and to foreign representations abroad.
Blue Card holders will be able to reside in Turkey and can obtain a residence permit upon their request without any other fees, provided that they only pay the book fee.
These people can buy and sell real estate in Turkey without any restrictions.
Again, it is possible for the persons in question to have an e-government password in order to benefit from the services offered through e-government. At the same time, upon submission of the approved copy of the Blue Card they will receive from the Turkish Consulate in their country and the form containing their identity and address information to Ankara Provincial Revenue Office, Capital Tax Office, a tax identification number will be given to them by the tax office and this number will be sent to the addresses of the applicants.
INCOME TAX OBLIGATIONS OF BLUE CARD HOLDERS
It is discussed how the persons subject to the Blue Card application will be evaluated within the scope of full liability – limited liability if they open a business in Turkey or are entitled as a partnership in an established business. Earnings and revenues obtained by individuals as natural persons are subject to income tax in accordance with article 1 of the Income Tax Law No. 193 ( “GVK” ).
Pursuant to the provision in article 4 of the Income Tax Law, the persons listed below are deemed to be resident in Turkey and are taxed on all of their earnings and revenues in and out of Turkey;
“The following persons are deemed to have settled in Turkey:
1. Those whose domicile is in Turkey (Domicile is the places written in the 19th and subsequent articles of the Civil Code);
2. (Amendment: 19/2/1963-202/2 art.) Those who reside in Turkey continuously for more than six months in a calendar year (Temporary departures do not cut the residence period in Turkey)”
For this reason, it is considered that real persons residing in Turkey continuously for more than six months in a calendar year will be deemed to have settled in Turkey and will be among the full liability holders.
In article 6 of the GVK, “Real persons who are not resident in Turkey are taxed ONLY over the earnings and revenues they OBTAIN IN TURKEY.” has regulation. 7 of the same Law. In this article, it is stated that the conditions under which the earnings and revenues obtained in terms of persons subject to limited liability are acquired “in the country” or “abroad” will be determined.
There is also an important feature on the subject; According to the circular numbered B.07.1.GİB.4.07.16.01-GVK.2010.140-220 and dated 15.07.2011 of the TR Revenue Administration, Antalya Tax Office, Taxpayer Services Revenue Group Directorate: “If a Turkish citizen subject to Blue Card application opens a business, full In the information text about whether it will be taxed as a taxpayer or as a limited taxpayer, the decision is stated as follows by referring to the GV General Communiqué Serial No. 210;
“…Within the framework of the explanations above; Provided that our citizens subject to the blue card application do not reside in Turkey for more than six months in a calendar year, they must be taxed as non-resident taxpayers if they have a workplace or have a permanent representative in Turkey and earn their income in these places or through these representatives. However, it is natural that our citizens who are subject to the blue card application, who earn by opening a workplace or having a permanent representative in Turkey, will be taxed as full taxpayers if they reside in Turkey for more than six months in a calendar year.
As a result, if Blue Card holders earn income in Turkey, they are required to make a declaration to the tax office for these incomes.
Provided that they do not reside in Turkey for more than 6 months in a calendar, they will also be taxed as non-residents if they have a business in Turkey or have a permanent representative and earn their income in these places or through these representatives. Persons who are considered as limited taxpayers will only have tax liability due to their earnings and revenues in Turkey.
On the other hand, if the persons subject to the blue card application, who earn income by opening a business in Turkey or having a permanent representative, reside in Turkey for more than 6 months in a calendar year, they will be born full taxpayers and all their income in the country or abroad will be subject to tax. .
CORPORATE TAX OBLIGATIONS OF LEGAL ENTITIES WITH BLUE CARD HOLDERS
In accordance with the Corporate Tax Law No. 5520, the persons subject to corporate tax are as follows; Capital companies, Cooperatives, Economic public institutions, Economic enterprises and business partnerships belonging to associations or foundations. As it can be understood, corporate tax liability arises on legal entities. For this reason, there is no change in terms of corporate tax if real persons with legal entity partnerships renounce their Turkish citizenship and acquire a Blue Card.
IN CONCLUSION; In the light of the information above, Blue Card holders have many rights, including but not limited to being treated like a Turkish citizen, paying taxes, establishing and closing a company, employing workers and acquiring real estate, with the limited exceptions mentioned.
Aline Mulino Bragiotti
Lawyer / K&P LEGAL LAW OFFICE