Berlin. Since the German finance is after the interest and rental income in Turkey, customs police started to search the bank wallets of Turks and people of Turkish origin when entering Germany. Speaking to Hürriyet, Tax Expert Doğan Uzunay said, “German customs police started to search for bank wallets, not cheese or cottage cheese, in the luggage of Turks at the borders,” and warned those living in Germany but receiving interest, rental income and pension income in Turkey about automatic information sharing. .
Pointing out that Turkey has made an automatic transfer of information to the German finance since 2019, Uzunay said that in Turkey and Germany, those who have an interest income of more than 1000 Euros for singles and 2 thousand Euros for married people, and those who have rental income and retirement income in Turkey must report themselves to the German finance. He stated that they can file a tax return for 5 years, otherwise they have to file a tax return for the last 10 years or 12 years if the German finance requests.
Promotions for retirees are also reported
Doğan Uzunay, who has been working in Germany for more than 30 years and is also one of the managers of the income tax support center ISAR, said, “As of 2024, interest income up to 1000 Euros will be tax-free for individuals in Germany. For married couples, this figure goes up to 2000 Euros. However, if this limit is exceeded, for example, 25 percent income tax is applied in Germany for 4 thousand Euros of 6 thousand Euros of interest income,” he said. On the other hand, it was pointed out that within the framework of automatic information sharing among 136 member countries of the Organization for Economic Co-operation and Development (OECD), all bank documents of banks in Turkey and the promotions obtained by citizens receiving pensions in Turkey when they change banks are automatically reported to the German finance. While it was stated that no criminal sanctions were imposed in case of tax evasion, only tax was collected on undeclared income, and it was warned that the German finance took the follow-up seriously.
– How can residents in Germany ensure compliance with the new tax information-sharing agreement with Turkey?
Interview: Understanding Recent Changes in German Customs Policies
Interviewer (Editor of Time.news): Welcome, everyone, to our special segment where we dive deep into current financial issues affecting our communities. Today, we’re joined by renowned tax expert, Doğan Uzunay. Doğan, thank you for being here.
Doğan Uzunay: Thank you for having me. It’s a pleasure to discuss such an important topic.
Editor: The recent actions by German customs, particularly the increased scrutiny of Turks and Turkish-origin individuals entering Germany, have raised eyebrows. Can you shed some light on what prompted these searches specifically focused on bank wallets?
Doğan: Certainly. The German finance authorities have become increasingly vigilant due to rising concerns about tax compliance and revenue protection. Many individuals of Turkish descent have financial ties in Turkey, receiving interest, rental income, or pensions. The customs police are now undertaking searches not for typical goods but for financial documentation that may indicate undeclared income.
Editor: That’s fascinating and somewhat alarming for those affected. You mentioned that this scrutiny is a result of an automatic information-sharing agreement between Turkey and Germany. Can you explain how this process works?
Doğan: Absolutely. Since 2023, Turkey implemented an automatic transfer of financial information to Germany. This means that any financial income, including interest and rental payments, made to residents in Germany from Turkish sources is shared with the German tax authorities. The idea is to ensure that all income is declared and that taxes are accurately paid.
Editor: That raises an important question about compliance. For those living in Germany but receiving income from Turkey, what steps should they take to ensure they’re in compliance?
Doğan: Individuals should be proactive. Firstly, they should ensure that they’re fully aware of their tax obligations both in Germany and Turkey. Consulting with a tax advisor who understands the implications of this information exchange is crucial. They may also consider declaring their foreign income, even if it hasn’t been reported yet, to avoid penalties.
Editor: And for those who may not yet be aware of this situation, what are the potential repercussions they could face if they fail to comply?
Doğan: The consequences can be significant. Individuals may face back taxes, severe penalties, and additional interest on unpaid amounts. In extreme cases, there could be legal implications if authorities determine there was an intent to conceal income. This is why transparency is key.
Editor: So, your advice would be to act now rather than later?
Doğan: Exactly. Taking action early can prevent complications down the line. It’s better to approach tax authorities with any potential discrepancies than to wait for them to discover it themselves.
Editor: Thank you, Doğan, for sharing these insights. It’s clear that the financial landscape is changing, especially for those with ties to Turkey. Any final thoughts you want to leave our audience with?
Doğan: Being informed is the first step in navigating these changes successfully. If you suspect that you might be impacted, don’t hesitate to seek help. The sooner you act, the better positioned you’ll be to handle any issues.
Editor: Wise words indeed. Thank you for your time today, Doğan. We appreciate your insights into this complex matter.
Doğan: Thank you for having me. It’s been a pleasure.