Amnesty Act 2020; Restructuring regulation for tax liabilities and outstanding social security contributions.

Amnesty Act 2020; Restructuring regulation for tax liabilities and outstanding social security contributions.

Amnesty Act 2020; Restructuring regulation for tax liabilities and outstanding social security contributions.

The Turkish Parliament has adopted the proposed restructuring regulation for outstanding tax liabilities and social security contributions. These regulations entered into force after publication in the Government Gazette on 17 November 2020.

You have until January 31st,of 2021 the time to do your application. The regulation applies to all kinds of tax debts that were assessed before August 31st, 2020. You can think of real estate tax, employee premium, rental income tax, corporate tax, Chamber of Commerce, etc.

What does this regulation offer me? Who is eligible for this? How can I submit the application? What are the payment options? How is the payment made? Below you will find the answers to these questions and more.

 

What does this debt restructuring regulation offer?
This regulation offers the option of paying off all kinds of outstanding tax debts, with deduction of interests and / or fines. This amount can be paid off by direct or installment payments.

You can think of debts with regard to the tax authorities, the social security, the municipality, customs, the government educational institution, the semi-professional organizations and similar bodies.

How is the application made?
The application is made digitally by E-devlet (Turkish Digi-D) or in person at the local authority.

 Which debts are included?
The restructuring regulation applies to outstanding amounts of debt that were known before August 31st, 2020. In other words, it concerns an amount of debt that was written out before this date and officially communicated to the person in question. However, claims disputed by the parties are disregarded. You can submit the official application until January 31st,of 2021.

The debt calculation and the deadline of payment

The calculation of the restructuring amount, depends of how the payment will be done. If you want to pay it directly, you get almost a full discharge on the overdue legal interest and the fine amount. There is also the option to make the payment in 6 to 18 installments. The overdue statutory interest is reduced by percentages calculated on the basis of the domestic producer price index and coefficients.

The actual payment to the tax and customs department will start in January 2021. At the social security institution, it will start from February 2021.

In short, if you have outstanding debts in Turkey that have not been paid off due to all kinds of circumstances and as a consequence have been properly incurred, I advise you to make use of this amnesty arrangement while you still can.

If you have any questions regarding this article, do not hesitate to contact us to find out what your options are.