Restructuring Good News for SGK and BAĞ-KUR Premium Debts
As we mentioned in earlier articles, the draft law titled “Draft Law on the Restructuring of Certain Receivables,” which was submitted to the Plan and Budget Commission on April 20, 2017, proposed restructuring for debts due in March 2017 and earlier that remained unpaid as of the publication date of the law. The restructuring proposal covering SGK, BAĞ-KUR and tax debts has finally been enacted as Law No. 7020, “Law on the Restructuring of Certain Receivables and Amendments to Certain Laws and a Decree-Law,” published in the Official Gazette on May 27, 2017 (issue 30078) and entered into force.
Which Debts Are Covered by the Restructuring?
Debts included in the restructuring are those finalized as of March 31, 2017: taxes subject to the Tax Procedure Law (Law No. 213), customs duties, tax penalties, certain administrative fines, social security contributions, group insurance premiums, retirement contributions and employer shares, unemployment insurance premiums, social security support premiums, and all ancillary receivables related to these debts such as interest, late payment penalties, delay interest, penal interest, and late fees.
What Is the Deadline to Apply?
Debtors who wish to benefit from the provisions of the law must apply to the relevant authority by June 30, 2017.
How Will Restructured Debts Be Paid?
The first installment of amounts due to SGK must be paid by August 31, 2017, to the collection offices affiliated with the Ministry of Customs and Trade. The first installment of amounts payable to the Ministry of Finance, municipalities and special provincial administrations must be paid by July 31, 2017. Subsequent installments follow in two‑month periods after the first installment and may be spread over up to 18 equal installments.
Interest Rates and Payment Method for Installments
- For 6 equal installments: multiplier 1.045
- For 9 equal installments: multiplier 1.083
- For 12 equal installments: multiplier 1.105
- For 18 equal installments: multiplier 1.15
The total amount determined by the applicable multiplier is divided by the chosen number of installments; each installment is payable every two months.
If the calculated amounts are paid in full as a lump sum within the first installment payment period, no interest will be charged for the period between the law’s publication and the payment date. Additionally, instead of ancillary receivables, amounts calculated based on the monthly change rates of the Domestic Producer Price Index (Yİ‑ÜFE) will be discounted by 50%.