The long-awaited tax and social security (SGK) restructuring bill has been approved by the parliament following recent deliberations. According to the law, those wishing to restructure tax and SGK debts can apply until the end of the year.
Debt Restructuring Approved
The bill, which had been discussed in the Grand National Assembly and covers debt restructuring and employment incentives, including amendments to the Unemployment Insurance Law and other statutes, has been adopted. Under the approved law, tax debts will be restructured and can be paid in installments over up to 18 months. The restructuring covers income tax, corporate tax, VAT, motor vehicle tax (MTV), special consumption tax (ÖTV), all administrative fines, student loan (KYK) debts and treasury receivables among other tax liabilities. A discount will be available for those who choose to pay their debts in full up front. Tax penalties, delay interest, late fees and all monetary penalties already issued—such as traffic, election and civil registry fines, and unauthorized road crossings—are included within the restructuring scope.
4/B BAĞ-KUR Debt Restructuring Payment: How to Pay
In addition, student contribution and study loan debts, improperly received support payments, the resource utilization support fund, and debts related to the protection of immovable cultural assets are also covered by the restructuring. Under the public finance and debt management regulations, treasury receivables and other receivables collected under the public receivables collection procedures are similarly included in the restructuring measures.
Conditions to Benefit from Restructuring Announced
With the law’s adoption, the conditions for benefiting from the restructuring have been clarified. Applicants who wish to benefit must apply by the end of the year, with the law effective from its publication date. Debts included in the restructuring can be repaid in up to 18 installments, paid every two months. If the debt is paid in full before the first installment date, the accrued interest may be waived. The first installment payments will begin in January 2021.
Interest and penalties are also addressed within the restructuring. Social security premium administrative fines, late payment penalties and interest increases are included. Additionally, debts arising from provincial administrations, property tax, environmental cleaning tax, advertisement and announcement taxes, wastewater and solid waste fees and many other municipal or public charges will be eligible for restructuring, and related surcharges and interest will be adjusted under the arrangement.
KOSGEB Supports Included in Restructuring
Debts from supports provided by KOSGEB, membership fee receivables, receivables of provincial administrations, municipalities and their affiliated organizations, and receivables arising from easement rights and leasing of properties owned more than 50% by the state are also accepted within the restructuring scope. Accordingly, rental receivables of the Directorate General of Foundations and other foundations, industrial chamber receivables and Turkish Standards Institution (TSE) service fee receivables have been included by the law.
How to Restructure Tax Debt Online?
Debts transferred to collections by the Social Security Institution that were determined before August 31 will be eligible if an application is submitted by the final application date. Receivables arising from leasing and easement rights on properties left to municipalities have also been added to the restructuring with the latest changes. Furthermore, debts incurred from municipal utility subscriptions such as water services may be included through restructuring requests. With the adoption of the law, the application window opened and runs until December 31, 2020.