International Tax Bulletin: 31.08.2021/17
Application, Declaration and Notification Periods and First Installment Payment Periods To Be Made Within The Scope Of Law No. 7326 Have Been Extended By One Month
“Law No. 7326 on Restructuring of Taxes and Certain Other Receivables and Amending Certain Laws”, which is known as “Amnesty Law” or “Restructuring Law” in the public, was published in the Official Gazette dated 09.06.2021 and entered into force on the same date. Afterwards, the implementation procedures and principles regarding the “Amnesty Law” were explained via “the Communique serial no. 1 on Law No. 7326 on the Restructuring of Taxes and Certain Other Receivables” published in the Official Gazette dated 14.06.2021.
In accordance with the current Law (without prejudice to the provisions regarding the application and payment period in the relevant articles), debtors who want to benefit from the provisions of the Law must:
- Apply to the relevant administrations until 31.08.2021,
- Pay the first installment of the amounts to be paid to the Ministry of Treasury and Finance, Ministry of Commerce, special provincial administrations, municipalities and collection offices affiliated to Investment Monitoring and Coordination Departments until 30.09.2021; the first installment of the amounts to be paid to the collection offices affiliated to the Social Security Institution until 31.10.2021; the other installments in a maximum of eighteen equal installments in two-month periods following these dates.
The President has the authority to extend the application and first installment payment periods up to 1 month in the Law.
The aforementioned authority was used with the “Presidential Decree No. 4420 (Decree)” published in the Official Gazette dated 27.08.2021, and the application and first installment payment periods foreseen to benefit from the Restructuring Law No. 7326 have been extended by 1 month. Accordingly, for the restructurings within the scope of the Law, the application periods to be made until 31.08.2021 and the first installments to be paid until 30.09.2021 (31.10.2021 for Social Security Institution) have been extended by one month.
There is no extension for other installments. These installments must be paid at their regular time. Therefore, there will be no 2-month time difference between the second installment and the first installment, and the second installments will have to be paid 1 month after the first installment. The following installments will be paid in bi-monthly periods.
Pursuant to the Presidential Decree No. 4420, following transactions which their application, notification and declaration deadlines are postponed to 30.09.2021, and their payment period of the first installments to 01.11.2021 (since 31.10.2021 coincides with the weekend):
- Restructuring of specified receivables (Law No. 7326, art. 2)
- Restructuring transactions for receivables that are not specified or are in the litigation phase (Law No. 7326, art. 3)
- Restructuring of the receivables arising as a result of the transactions in the examination and assessment phase, and the structuring of the declarations filed with regret or spontaneously within the scope of the Tax Procedure Law (Law No. 7326, art. 4)
- Base and tax increases (Law No. 7326, art. 5)
- Correction of accounts related to cash, receivables from shareholders, stocks, and fixtures (Law No. 7326, art. 6)
Within the scope of Article 7 of the Law No. 7326, the applications to be made to the collection offices for the receivables of the Social Security Institution can be made until 30.09.2021, and the first installments of the restructured receivables can be paid until 30.11.2021. Similarly, restructuring may be requested until 30.09.2021 for preliminary evaluation, research or missing employee premium amounts and undetermined administrative fines within the scope of Article 8 of the Law.
Restructuring can be requested until 30.09.2021 for all kinds of debts (Law No. 7326, art. 10) due to work accident and occupational disease, disability, ordinary disability and death, and actions for the general health insurance holder and their dependents. Payment transactions regarding the aforementioned debts can be made until 30.11.2021.
Some dues and debts to chambers and commodity exchanges (Law No. 7326, art. 10/4) can be restructured until 30.09.2021, and their payment periods can be considered as 31.10.2021.
You may access the Presidential Decree No. 4420 via this link.