Provisions on Restructuring of Public Receivables of the Law No. 7256 entered into force
Through the Law No.7256 on Restructuring of Some Receivables and Amending Some Laws ("Law No. 7256"), published in the Official Gazette dated 17th November 2020 and No. 31307, procedures and principles regarding restructuring of the specified public receivables are regulated.
Receivables Within the Scope of Restructuring Regulations
The scope of restructuring includes overdue debts to many institutions and organizations, especially tax and insurance premium debts. Debts at the stage of tax inspection, settlement and litigation are not within the scope of restructuring.
Some of the debts covered by the restructuring are as follows:
- Taxes, tax penalties, default interest, delay increases for the periods before 31.8.2020
- Customs taxes, administrative fines, interest, delay interest, default interest debts arising from customs obligations before 31.8.2020
- 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 for August 2020 and previous months and delay fine and delay increase debts related to these
- Traffic, election, population fines; Fines imposed according to the Road Transport Law; fines for irregular crossings on highways
- Education contribution loan and education loan debts, adequate pay, improperly received support payments, resource utilization support fund
- Debts to special provincial administrations, property tax, contribution to the protection of immovable cultural assets, environmental cleaning tax, announcement and advertisement tax, other taxes and fees collected by municipalities, water, waste water, solid waste fees, road participation fees, various fees institutional receivables, increases and interests
- Payment of Dues for TOBB, TESK, Bar Association, TÜRMOB, exporters' unions.
Receivables Cancelled Upon Restructuring
The collection of accessory receivables such as fines, interest, delay increase, default interest based on the primary debts will be cancelled provided that all originals of tax, insurance and other debt are paid in time and in a manner specified in the law. Instead of these amounts, the amount to be calculated according to the monthly rate of change of the domestic producer price index (D-PPI) until the publication date of the law must be paid. On the condition that this amount is paid, interest, default interest and default surcharge are deleted. A certain percentage of the fines that do not depend on the original receivable are deleted.
Payment of the Restructured Debts
The structured debt can be paid in 6, 9, 12 or 18 month installments. In the installment payment option, the amount of debt to be paid is increased by coefficients. In case all calculated amounts are paid within the first two installments payment period, the coefficient is not applied. If an advance payment is made within the first two installments, a discount is made on the amounts to be calculated based on the D-PPI monthly change rates.
In order to benefit from the restructuring, the application must be made by the end of this year and the first installment must be paid until 31.01.2021 for tax debts and 28.02.2021 for insurance debts.
Taxpayers who want to benefit from the provisions must apply to the relevant administration until 31.12.2020.
- You may find the full text of the Law No. 7256 here.
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