Millions of people are affected by the debt restructuring law numbered 7256, which brings many types of debts into a restructuring framework and provides easier payment options. By understanding the details of the restructuring law, you can learn which debts are covered and how to apply.
Which Debts Are Covered by the 7256 Debt Restructuring Law?
The 7256 debt restructuring law covers a wide range of outstanding obligations. Debts and receivables included in the restructuring are as follows:
- Social security contribution debts (insurance premiums),
- General health insurance (GHS) premium debts,
- Unemployment insurance premium debts,
- Administrative fines finalized before December 31, 2020,
- Recourse receivables arising from occupational disease, work accidents, or disability,
- Claims resulting from unduly paid incomes and pensions,
- Receivables related to restoring suspended service periods under Bağ-Kur (self-employed social security),
- Voluntary insurance premium debts,
- Ancillary debts (fer’î alacaklar) that remain unpaid although principal amounts were paid before the law’s enactment,
- Premiums arising from insured status under Law No. 2925,
- Receivables arising under Enforcement and Bankruptcy Law (Law No. 6183) are also included.
Instead of late fees and statutory interest on the restructured debts, the Domestic Producer Price Index (Yİ-ÜFE) change rate will be applied. Accordingly, if the debt is paid in full immediately, 90% of the Yİ-ÜFE portion will be written off; if the total debt is paid in two installments, 50% of the Yİ-ÜFE portion will be written off. Those who wish to benefit from the restructuring must apply by December 31, 2020, and pay their first installment no later than March 1, 2021.
For general health insurance premiums due before August 2020, if paid by April 30, 2021, all late fees and increases will be waived. General health insurance holders who have not previously undergone an income test must take the income test by March 31, 2021, and declare that household income is less than one third of the minimum wage; in that case GHS premium debts will be fully waived.
How to Apply for Debt Restructuring under Law 7256?
To apply for SGK debt restructuring, follow these methods and channels:
- Employers can submit restructuring applications for their debts via e-Sigorta (electronic insurance), in person, or by mail to the local SGİM office.
- 4B (Bağ-Kur) insured persons can apply through e-Government (e-Devlet), in person, or by mail to the SGİM. Voluntary insured individuals may use the same channels.
- Public sector employees under 4C status can apply via e-Sigorta, in person, or by mail to SGİM. Administrative fines belonging to public institutions can also be restructured using these same methods.
The final deadline for restructuring applications was December 31, 2020; applicants needed to submit by that date. However, those with Bağ-Kur debts could apply until January 31, 2021. No application was required to restructure general health insurance premium debts.
Apply for restructuring via the Revenue Office (İncome Tax Office) portal
What Are the Benefits of Restructuring?
The benefits of opting for debt restructuring include:
- No late fees or statutory interest will be applied for debts paid within the timeframes defined by the restructuring law.
- No collateral is required to participate in the restructuring.
- Levies placed on restructured debts will be lifted once the restructured payments are made.
- No foreclosure or enforcement actions will be initiated for restructured debts while the arrangement is in effect.
- If the first two installments of the restructuring are fully paid, firms can obtain a clearance certificate showing no outstanding debts.
- Debts owed to municipalities and their independent affiliated entities can be paid in up to 120 equal installments.
- Those who restructure may also benefit from social security premium incentives for other debts that are outside the restructuring.
Given these advantages, restructuring can offer significant relief and convenience for taxpayers and contributors.
Debts Finalized Before August 2020
- Social security contribution debts (insurance premiums),
- General health insurance premiums,
- Unemployment insurance premiums,
- Administrative fines finalized before December 31, 2020,
- Recourse receivables arising from workplace accidents, occupational diseases, or disability,
- Claims from undue payments of incomes and pensions,
- Receivables from restoring previously suspended service periods for Bağ-Kur insureds,
- Voluntary and group insurance premiums,
- Ancillary receivables whose principal amounts were paid before the law’s publication,
- Premiums arising from insured statuses under Law No. 5510 (additional articles) and Law No. 2925,
- Receivables installmentable under Article 48 of Law No. 6183,
These items fall within the scope of the restructuring.