On the Restructuring of Certain Receivables under Law No. 7256

Law No. 7256 on the Restructuring of Certain Receivables and Amendments to Certain Laws entered into force upon publication on 17 November 2020.

With the Restructuring Law;

·         The debt burden of our citizens to the public sector will be reduced

·         Additional discounts will be applied if restructured debts are paid in advance or within the payment period of the first two instalments

·         Debts can be paid in instalments

·         Tax disputes relating to the collection of debts will be terminated

·         Receivables restructured under Law No. 7143 whose payments are ongoing can, upon request, be restructured under Law No. 7256

·         If all of the restructured receivables are paid within the payment period of the first instalment or the first two instalments, a discount will be applied on the D-PPI amounts included in the remaining instalment amounts

The necessary promotional activities have been launched in order to explain to our citizens the Law, which makes arrangements in such a wide variety of areas and addresses all segments of society, and to ensure that maximum benefit is derived from the Law.

As the Provincial Directorate of Finance, we stand ready with all our staff to explain and implement the Law.

The Restructuring Law provides payment facilities for finalised debts.

 · The interest on taxes and other debts payable to Tax Offices is reduced to the D-PPI rate, that is, by approximately 75%. Penalties attached to the principal tax are also completely cancelled.

· Discounts are also applied to irregularity and special irregularity penalties.

· If the debt is paid in advance, not only is no coefficient applied but a further discount is made, and if the entire debt is paid within the payment period of the first instalment;  

-          a discount of 90% is applied to the amount calculated at the D-PPI rate,

-          and, if the restructured debt consists of administrative fines within the scope of the Law, an additional discount of 25% is applied to the fine amount.

· Those who choose the instalment payment option;

· may, if they wish, make an advance payment within the payment period of the first instalment and benefit from the facilities provided.

· may, if they wish, after paying the first instalment on time, benefit from the discount opportunities by paying all of the remaining instalments within the payment period of the second instalment.

-          In this case, not only will the coefficient calculated due to restructuring not be applied, but a discount of 50% will be applied to the D-PPI amount.

-          If the restructured debt consists of administrative fines within the scope of the Law, a discount of 12.5% will be applied to the fine amount.

· The discount can also be applied if the restructured receivable consists only of ancillary receivables such as interest and late payment surcharges.  

-          In this case, a discount of 50% on the D-PPI amount will be applied if the full D-PPI amount calculated in place of the ancillary receivable is paid within the payment period of the first instalment,

-          and a discount of 25% will be applied if it is paid within the payment period of the second instalment, provided that the first instalment has been paid on time.

· The Restructuring Law makes it possible to pay debts in 18 instalments over a period of 36 months.

· A coefficient well below the interest rate currently applied will be applied to the instalments.

 By benefiting from the opportunities offered by the Law, our citizens will be able to restructure their debts to the public sector and carry out their economic activities more easily.

All taxes such as income tax, corporate tax, motor vehicle tax, VAT and Special Consumption Tax can be restructured under this Law.

In addition, administrative fines, including traffic, population registry, election and military service fines and fines imposed for irregular passage on highways, which concern a large number of our citizens, can be restructured within the scope of the Law.

The tuition and contribution loan debts of students who received loans from YURTKUR, as well as the occupancy fee (ecrimisil) debts of our farmers and businesses, can also be restructured and paid under this Law.

The Law takes 31 August 2020 as its basis. Receivables accrued before 31/8/2020 (inclusive) and finalised as of the publication date of the Law, which remain unpaid despite being due as of that date or whose payment period has not yet expired, are covered, while those accrued after 31/8/2020 are not covered.

Vehicle owners who restructure their motor vehicle tax debt will be able to have their roadworthiness inspections carried out as long as they pay their instalments.

As long as the restructuring is not breached, a certificate of no debt can be obtained.

 

Applications and payments

Those wishing to benefit from the Law must apply to the relevant tax office by 31 December 2020.

 Applications can be made via the Revenue Administration website www.gib.gov.tr or e-government www.turkiye.gov.tr, by visiting the tax office or by post. At this point, we would particularly like to remind all our citizens to use electronic application methods due to the ongoing pandemic.

During the application, one of the advance payment or instalment options will be chosen. The restructured amounts can be paid with 6, 9, 12 or 18 instalment options. Instalments will be payable once every 2 months.

Advance payments or first instalment payments must be made by 1 February 2021 (inclusive).

Advance payments are encouraged.

 We would like to remind our citizens once again of the advance payment arrangement introduced by this Law.

· If the entire debt is paid within the payment period of the first instalment;

-          No coefficient is applied,

-          A discount of 90% is applied to the D-PPI amount.

-          A discount of 25% is applied to administrative fines within the scope of the Law.

-          If the restructured receivable consists only of ancillary receivables, a discount of 50% is applied to the D-PPI amount calculated under the Law.

· If the instalment payment option is chosen and, after the first instalment has been paid on time, all of the remaining instalments are paid within the payment period of the second instalment;

-          No coefficient is applied,

-          A discount of 50% is applied to the D-PPI amount.

-          A discount of 12.5% is applied to administrative fines within the scope of the Law.

-          If the restructured receivable consists only of ancillary receivables, a discount of 25% is applied to the D-PPI amount calculated under the Law.

· If the advance payment option is chosen but the payment cannot be made within the payment period of the first instalment, it is possible to pay this amount with a late payment surcharge until the end of the following month. For payments made in this way as well;

-          No coefficient is applied,

-          A discount of 50% is applied to the D-PPI amount.

-          A discount of 12.5% is applied to administrative fines within the scope of the Law.

-          If the restructured receivable consists only of ancillary receivables, a discount of 25% is applied to the D-PPI amount calculated under the Law.

 It is worth stating first of all: receivables restructured under Laws No. 6736 and 7020 and currently being paid cannot be restructured under the new Law.

However, upon the request of taxpayers, debts restructured under Law No. 7143 whose payments are ongoing can be restructured under the new Law.

There is a condition that the first 2 instalments be paid on time.

One of the most important points to which those wishing to benefit from the Law should pay attention is that, if they have chosen to pay in instalments, the first two instalments must be paid on time.

Those who do not pay the first 2 instalments will not be able to benefit from the opportunities provided by the Law.

You can get answers to all your questions about the Law from the documents on the Revenue Administration website www.gib.gov.tr or via 189 VİMER.

In summary, we would like to announce that it is beneficial to apply as soon as possible and, where possible, to choose advance payment in order to benefit from this new restructuring Law, which is a law that may concern all segments of society.

 In addition, due to the COVID-19 pandemic, we would like to remind you once again to submit your applications electronically via the Interactive Tax Office application at www.gib.gov.tr or by post, and, for payments, to prefer payment by credit card or debit card via the Interactive Tax Office or through contracted banks.

 

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Date Added :2020-12-29 02:19:00