The law on restructuring public receivables adopted by the Grand National Assembly of Turkey brings significant convenience to many taxpayers. Nevertheless, issues such as expansion of tax base, stock and cash remission, and the status of disputed receivables are not included in the scope.

Dear Fortune readers, in this article I would like to share my assessment regarding the Law No. 7256 on Restructuring Some Receivables and Amendments, which is publicly known as tax amnesty / restructuring law.

A new restructuring has been enacted in order to collect unpaid public receivables, which are not paid especially due to the COVID 19 pandemic crisis. However, this regulation merely involves restructuring unpaid debts and it does not cover issues such as tax base expansion, stock remission, litigation, reconciliation and tax restructuring of the undefined receivables that are going through investigation.

Within this restructuring law; taxes based on declaration, including customs duties, which have not been paid before the publishing date of this law in the Official Gazette with regard to the period before 31.08.2020 or whose payment period has not expired, in case of paying social security premium, pension deductions, unemployment insurance premium, social security support premium that are paid until the date of publication of the law by means of calculating index of domestic producer prices, all payment of the tax and customs penalties, late fee and default interests related to these taxes will be deleted. Besides, when the debtors pay 50% of the tax and customs penalties that are not related to any tax and customs duties together with its late fee within the conditions specified in the law, and they pay 50% of the original administrative fees; all the additional receivables such as remaining amount and additional penalties are also deleted.

Those who want to benefit from the aforementioned restructuring must apply to the relevant tax office by 31.12.2020. In order to benefit from this restructuring, tax payers are required to submit a petition stating that they will not file litigation regarding the restructured public receivable or that they will withdraw the case that is already filed. If they prefer to pay the restructured public receivable by installments, there is a possibility of splitting the total payment into 6, 9, 12 or 18 equal payments. The installment amount will increase according to the coefficient mentioned in the law and they will be paid in two-month periods. Within the framework of this regulation, if the original amounts of the Bar, Chamber and Union membership fees that were not paid until 31.08.2020 are entirely paid, the collection of accessory receivables such as default interest and delay fee corresponding to these initial amounts will be deleted.

Besides, within this law, except for reconstructing public receivables; issues such as new employment incentives, extending short working periods, extending time periods with regard to some tax regulations, tax liabilities regarding equity companies’ acquisition of their own shares, assets to be brought to Turkey from overseas, reducing 2 points of corporation tax rate for the companies that are going public for the first time are also mentioned. In the upcoming months, I will also share my reviews on other regulations, out of unpaid public receivables, being covered by this law.


Leon Aslan Coşkun