30 Sep

Turkish parliament has enacted the Law No: 6552 that has been promulgated as of September 11, 2014 and provides restructuring for unpaid tax debts and administrative penalties.

Thus, the taxpayers are enabled to restructure their tax debts  accrued before 30 April 2014 and  to pay the restructured amount in  18 equal instalments to be paid in every 2 months period excluding the second installment of the income tax for the year 2013. The structured amount is reached as applying the ratios defined in the Law No:6552 to the principal debt after cut of the default interests and penalties (2013 calendar year, except on the second installment of income tax ).  This article underlines the bullet points as a guidance for taxpayers in Turkey.

What is the scope associated with taxes?

The taxes based on declaration which should be given their declarations up to the date 30.04.2014 (Including that date) and their tax penalties, default interests and late fees. The taxes for the year 2014 accrued before 30.04.2014 (Including that date) and their tax penalties, default interests and late fees (except the second installment of the motor vehicle tax accrued for the year 2014). The tax penalties independent from their tax base with respect to the findings before 30.04.2014 (Including that date). The motor vehicle tax and their tax penalties, default interests and late fees. Estate tax, sanitation tax, contribution for the protection of cultural real properties calculated over estate tax. The taxes accrued on the declaration with reservations.

What are the payment bases?

Instead of the subsidiary public receivables such as the whole unpaid portion of the overdue or undue receivables as of the date of 30.04.2014 (Including that date) and their penalties, default interests and late fees and instead of the subsidiary public receivables which in case of they consist only unpaid debts, it’s waived the collection of the subsidiary public receivables provided that calculated amount considering D-PPI monthly rate of change until the date of publication of this law is paid fully in specified time and manner.  %50 of arrears charging is waived, provided that %50 of overdue and undue tax penalties as of the date of 30.04.2014 (Including that date) adjudged independently from tax base is paid in specified time and manner. The monthly rate of change of D-PPI which is specified in previous month from the date of publication of this law is taken as a basis for payments. For the debtors who want to take advantage of this provision, it’s essential not to sue, not to resort to legal remedies and to quit their claims.  Quit claim petitions are submitted to the relevant collection department. The petitions are sent to the relevant judicial authority by accepting the date of this petition to the collection department as the date of the relevant judicial authorities. In case of more than two missing payments appear without any difficult situation in a calendar year for each type of tax, the applying taxpayers who want to take advantage for the annual income or corporation tax, income (withholding) tax, corporation (withholding) tax, value added tax and the excise tax will lose their remaining payment rights in accordance with the specified provisions. For the debtors who want to take advantage of this provision, they should apply up to the end of the second month following the promulgation date of the law. In case of full payment of the amount calculated in the first installment period, no interest is charged for the period from the date of publication of the law until the date of payment. If desired to be paid in installments during the application of the debtor, it’s essential to choose one of the payment options from six, nine, twelve or eighteen equal installment options.

The amount in installments determined in accordance with the relevant clause is multiplied with the coefficients;

  • 1,05 for six equal installments,
  • 1,07 for nine equal installments,
  • 1,10 for twelve equal installments,
  • 1,15 for eighteen equal installments,

And the amount of bimonthly payments is calculated by dividing calculated amount to the number of installments to be paid. Preferred payment plan is given to the applying debtors in order to benefit the amnesty. However, the amount payable is adjusted to relevant coefficients if it’s paid in period less than the preferred time.

If two or less installments in a calendar year (one for calendar year 2014) is not paid in time or missing the right to benefit from the amnesty regime is lost.

 The amount of credit that are payable at maturity or payment not exceeding 10% of the five Turkish lira (including the amount) made ​​up for missing payments will not be deemed exceeded.  If the receivables that will be by credit card, the day of credit card used is taken as basis for these payments as payment date and a receipt indicates that the collection is made is given to the debtor. The debtor who applies to take advantage and who wants to pay the payable amounts from their refunded receivables on account of their own debts in accordance with the relevant tax legislation should submit full and complete documentation stipulated by the relevant legislation in application and/or installment period in order to fulfill this demand.


Herdem Law Firm, Istanbul Turkey

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