Dozens of companies compete in public tenders used by government bodies and institutions to procure the most suitable provider for a service. Although companies must submit a tender file during application, that file does not typically require documents specifically proving the absence of debts. However, those who win a public tender are required to submit, within 10 days of being awarded the contract, a written declaration stating that they have no outstanding debts. The “no-debt certificate for tenders” is issued separately for tax debts and Social Security Institution (SGK) premium debts.
According to Article 17.4.1 of the Public Procurement Law General Communiqué, the tax debt threshold for all companies awarded tenders is 5,000.00 TL. If the total of all tax debts up to the date the tender was awarded remains below this threshold, the company is presumed to have no tax debt. Because it is the responsibility of the winning company to prove it has no tax debt, the company may request an official document confirming no tax debt from its tax office. A tax debt exceeding this threshold constitutes an impediment: the awardee is not permitted to perform the contracted work and the tender will be awarded to another party.
The system for SGK premium debts differs from that for tax debts. The debt limit for the “no-debt certificate” varies based on the applicant’s status. According to the table published by the Social Security Institution, the tender debt thresholds depend on the applicant’s classification:
Debts included in the calculation above:
- The full amount of Social Security premium debts
- Insurance premium debts
- Unemployment insurance premium debts
- Social Security support premium debts
- Penalties and late-payment interest applied to the above premiums in case of delayed payment
- Retirement contribution deductions
- Institutional provisions
An employer seeking a no-debt certificate for a tender must first determine their category in the table above and ensure that the total of their premium debts and other relevant liabilities remains below the specified limit. The company owner must personally visit the provincial directorate of the Social Security Institution where the company is registered and submit a written petition requesting a statement of no premium debt, based on Article 10 of Law No. 4734. The petition must clearly state that the request is for a no-debt letter required for a tender. Several specific items of information must be included with this petition; these can be grouped under the following headings:
- Applicant’s Status under Social Security Legislation
Specify the applicant’s category as listed in the SGK table. - Employer / Workplace / Insured Party Information
Include the employer’s full name, trade name, SSK workplace registration number, company type, and contact details. - Applicant Information
Provide the applicant’s tax identification number, tax office name and province, national ID number, Bağ-Kur number, and Civil Servant Retirement Fund workplace code where applicable. - Other Workplaces Registered to the Applicant under SSK and the Civil Servant Retirement Fund
- Companies in which the Applicant Is a Partner
- Workplaces Where the Applicant Acts as an Intermediary (Subcontractor)
- Workplaces Where the Applicant Is a Senior Executive or Employer’s Representative
These are the main points regarding the no-debt certificate for tenders. An employer who submits a petition containing the information above to the provincial SGK directorate will be subject to a nationwide inquiry. If the inquiry confirms that the employer has no disqualifying debts, the SGK will issue the no-debt certificate. For convenience, an example petition form is available that can be filled out and submitted to the SGK provincial directorate instead of drafting a new petition from scratch.