After the Presidential approval and publication of Law No. 7143 in the Official Gazette on May 18, 2018, a wide-ranging tax and penalty amnesty and debt restructuring arrangement came into force. The law raises questions about which types of debts qualify for forgiveness and installment plans—such as tax amnesty, student loan forgiveness, traffic fine forgiveness, tax penalties, certain administrative fines, occupation-related compensation (ecrimisil), customs duties related to student and contribution loans and their administrative fines, social security premiums, collective insurance premiums, retirement deductions and employer share, unemployment insurance premiums, social security support contributions and all accessory receivables attached to these claims (interest, penalties, late fees, default interest and delay penalties). Equally important for many is the timeframe for applying, where to apply, and how to complete applications. This article clarifies those frequently asked questions.
What Benefits Were Introduced under the Revenue Administration?
The law introduced a number of significant advantages, including:
- Updating overdue tax debts as of 31.03.2018 based on the Domestic Producer Price Index (Yurt İçi ÜFE).
- Substantial payment relief for Motor Vehicle Tax.
- Major reductions for traffic fines and other administrative fines.
- An additional 90% reduction on the Yurt İçi ÜFE-calculated amount for lump-sum (cash) payments.
- Cancellation of 50% of fines for irregularity and special irregularity that are not based on the tax principal.
- Up to 80% discounts for resolving tax disputes through conciliation.
- Correction of business records to reflect actual status without penalties or interest.
- Penalty-free and interest-free stock adjustments for pharmacies.
- Exemption from tax audits for taxpayers who increase their tax base and declare additional tax under the program.
- Restructuring of debts that are in the examination or assessment phase.
- Penalty-free and interest-free voluntary declarations for undeclared income and gains.
- Measures encouraging the repatriation of certain domestic and foreign assets to the national economy.
- Repayment of restructured debts in up to 18 installments over 36 months.
- The ability to pay restructured debts by debit or credit card through participating banks.
- Write-off of debts of 100 TL or less with due dates earlier than 31.12.2013.
These provisions provided substantial relief and practical payment options for many taxpayers and debtors.
When Can You Apply?
Applications for all eligible debts began on May 18, 2018. The final date to submit applications was July 31, 2018. Applications submitted after that date were not accepted.
When Is the First Installment Due for Restructured Debts?
For debts owed to the Social Security Institution (SGK), the first installment payment was set for August 31, 2018. For debts to the Ministry of Finance, the Revenue Administration, the Ministry of Customs and Trade, provincial special administrations, municipalities and Public Economic Enterprises (YİKOB), the first installment was due by October 1, 2018.
How and Where Do You Apply?
Applications for SGK debts could be made in person at the relevant provincial social security directorates or social security centers, or by registered mail with return receipt. For tax debts, applications were to be made through the Revenue Administration’s website or submitted directly to the relevant tax office in person or by registered mail with return receipt. For registered mail submissions, the sending date needed to be July 31, 2018 or earlier.
How to Pay Revenue Administration Debts Online
1 – For taxpayers whose tax liability continues:
Taxpayers with ongoing liability could access the Revenue Administration system using the password obtained from the tax office. Once logged in, the system displays debts that can be restructured under the law. After selecting the eligible debts and choosing the preferred payment method, the restructuring application is completed online.
2 – For individuals who are not registered taxpayers:
First, access the e-Government portal and the Revenue Administration services page. From the relevant page, select the application form for restructuring debts under Law No. 7143. You will be prompted to sign in to the e-Government system using your e-Government credentials (identity number and password) or the “Verify My Identity” option to reach the e-Government login page. After signing in, click “Go to Application” to reach the Revenue Administration page via e-Government. From there, select the debts to be restructured and complete the restructuring application process.
By following the steps above, eligible taxpayers and individuals could benefit from the reductions, installment options and other advantages provided under Law No. 7143.