Provisions on Restructuring of Certain Receivables and Amendments to Certain Laws No. 7440
Through the Law No. 7440 on Restructuring of Certain Receivables and Amending Certain Laws (Law No. 7440), published in the Official Gazette dated 12.03.2023 and No. 32130, procedures and principles regarding restructuring of the specified public receivables are regulated.
Receivables Within the Scope of Restructuring
The scope of the restructuring includes finalized or non- finalized debts to many institutions and organizations, especially tax debts, and debts at the stage of litigation, investigation and assessment.
Some of the debts covered by the restructuring are as follows:
- Taxes, tax penalties, default interest, delay increases for the periods before 31.12.2022
- Customs taxes, administrative fines, interest, default interest, delay increase debts arising from customs obligations before 31.12.2022
- Administrative fines for the periods before 31.12.2022
- Other principal and secondary public receivables tracked by the collection offices in accordance with the Law No. 6183 on the Procedure for Collection of Public Receivables (Law No. 6183)
- Insurance premiums, pension deductions and corporate provision, unemployment insurance premium, social security support premium, optional insurance premium, community insurance premium, administrative fines, stamp tax, special transaction tax and contribution to education tracked by the collection office of Social Security Institution for December 2022 and previous months and delay fine and delay increase debts related to these
- Some primary and secondary receivables and penalties owed to Special Provincial Administrations, Municipalities, Metropolitan Municipalities Water and Sewerage Administrations, Investment Monitoring and Coordination Directorates
Receivables Waived from Collection with Restructuring
Provided that all of the finalized tax debt principals are paid within the period and in the manner specified in the law, the collection of secondary receivables such as penalties, interest, delay increase, and default interest related to the receivable principals are waived.
Provided that 50% of the finalized tax penalties and tax penalties imposed without being dependent on a tax principal and 50% of the tax penalties imposed due to participation are paid, the collection of 50% of these penalties and the delay increases related to these penalties are waived.
Provided that all of the administrative fines within the scope of Article 1/1-b of Law No. 7440 and all of the unpaid portion of the principal public receivables other than the above, which have not been paid or whose payment period has not yet expired, are paid in full, the collection of all of the related secondary receivables are waived.
Provided that the portions specified in the law depending on the stages of the proceedings of taxes and tax penalties that (i) have not been finalized or (ii) are in the stage of litigation, inspection or assessment, are paid, the collection of the remaining portions are waived.
Instead of these waived amounts, the amount to be calculated according to the monthly change rates of the domestic producer price index (D-PPI) until the publication date of the law must be paid.
Payment of Restructured Debts
The restructured debt can be paid in installments of 12, 18, 24, 36 or 48 months. In the installment payment option, the amount of debt to be paid is increased by coefficients. If the entire calculated amounts are paid within the first installment payment period, the coefficient is not applied. If payment is made in advance within the first installment period, a discount is made on the amounts to be calculated based on the monthly change rates of D-PPI.
In order to benefit from the restructuring, it is necessary to apply to the relevant administration by 30.04.2023 and pay the first installment by 31.05.2023.
In addition, those who have applied to benefit from the provisions of Law No. 7440 must not file a lawsuit or give up the lawsuits filed pursuant to the relevant articles.
The Communiqué on Restructuring of Customs Receivables within Law No. 7440 (Communiqué on Restructuring of Customs Receivables) entered into force as published in the Official Gazette dated 23.03.2023 and No. 32141. The General Communiqué on Law No. 7440 regarding Restructuring of Certain Receivables is still in draft form and is expected to enter into force in the near future.
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