It is focused on reducing public debt burden of taxpayers and providing opportunity to pay their debts in installments, amicable settlement of disputes.
Also resolving issues under tax inspection without resorting to litigation, elimination of possible risks related to past taxation periods by increasing predictability in taxation.
Encourages transition to formal economy by adapting business record to actual status.
The procedures and principles regarding implementation of Law 7440 on restructuring.
In the Communiqué, there are explanations of receivables within the scope of the Law, tax base and tax increase and correction of the business records.
In addition, per authorization given by temporary art 8 of Higher Education Credit and Dormitory Services Law 351 of Aug. 1961 explanations re cancellation of receivables.
For example late fee, coefficient, D-PPI amount related to education, contribution loan.
Serial No: 2
New rules issued to establish the procedures and principles regarding implementation of 21st, 22th, 25th and 26th paragraphs of Article 10 of Law 7440 on restructuring.
Procedures and principles re implementation of the paragraphs regulated, and detailed explanations and examples included in the Communiqué to prevent practical issues.
Serial No: 1 on Seventh Clause (Vehicle Inspections)
Communiqué on 7th Clause (Vehicle Inspections) of Art 10 of Law 7440 restructuring.
Those who have not had their vehicle inspections done until Mar. 12, 2023, when Law 7440 was published must have their vehicle inspected by Sep. 30, 2023.
If amount to be calculated based on change of D-PPI monthly rate until publication Law 7440, monthly rate of 0.75% after that, is paid together with inspection fee, said 5% surplus not charged, instead of 5% surplus that should be calculated per article.
Explanations of provisions regarding this regulation made with the Communiqué.
Effectiveness
Enter into force on publication date, provisions executed by the Minister of Finance.
Apr. 2023 Serial No: 3
On Apr. 15, 2023, TUR Tax issued general communiqué of law 7440 on restructuring of taxes and some other receivables (serial No: 3) and published it in the official gazette.
Amendment of para 27 of art 10 of law 7440, set up for corporate taxpayers a one-time additional tax, declared as discount/exemption/reduced corporate tax for 2022.
Those liable for corporate tax in Adane, Adiyaman, Diyarbakir, Elazig, Gaziantep, Hatay, Kahramanmaras, Kilis, Malatya, Osmaniye and Sanliurfa provinces.
As well as in the Gurun District of Sivas Province will be exempt from additional tax.
Following the amendment, an additional tax of 10% will be charged on the discount, exemption and reduced corporate tax bases that are in the scope of the additional tax.
With the exception of affiliate earnings, the additional tax rate will be 5% for the exempt earnings obtained from abroad and which are carrying a tax burden of 15%.
The tax's first installment will be paid within the payment period of the corporate tax.
Second one will be paid in 2 equal installments, in the 4th month following that period.
Communiqué serial No: 3 entered into force upon its publication, on Apr. 15, 2023.
Apr. 28 2023 Guidance Published
On Apr. 28, 2023, TUR Tax issued two sets of guidance, with configuration law no. 7440 guideoutlining in scope debts, options for finalizing tax and penalty payments.
Basis and tax increase guidance covers tax area increases such as income, corporate, VAT, inspections started prior to law publication date, application and payments.
May 3, 2023 Credit Debts, Fines Brochures
On May 3, 2023, TUR Tax issued the tuition and contribution loan structuring brochure.
Prepared in line with the explanations in the general communiqué of law 7440 on restructuring of certain receivables serial No 1; re unpaid debts as of Mar. 12, 2023.
Also, TUR Tax issued MTV, vehicle related administrative fines restructuring brochure.
In line with communiqué serial No 1 re details on how to benefit from the restructuring motor vehicle tax (MTV), traffic administrative fine (TPC), administrative fine debts.
May 5, 2023 New Brochure
On May 5, 2023, TUR Tax issued the brochure on debt restructuring in the review and settlement phase, prepared in line with the explanations in the general communiqué of the law no. 1 on the restructuring of certain receivables series re law 7440.
Covers benefits from the law in tax examination and appreciation procedures not yet completed even though they began before Mar. 12, 2023 when the law published.
Where, when, how applications will be made and benefits provided by configuration.
How and for what time structured amounts will be paid, advantages of prepayment.
May 25, 2023 Amendments
On May 25, 2023, TUR GVT, TUR Tax issued decree 7300 on extension of application and first installment payment periods for notification/declaration under law 7440.
Decision extends payment periods for notification and declaration until Jul. 31, 2023.
Jun. 2023 Application for Extension
On Jun. 16, 2023, TUR Tax specified that in order to benefit from payment extensions until Jul. 31, 2023, taxpayers must submit a relevant application by Jul. 3, 2023.
Jul. 6, 2023 Update on Payments
On Jul. 6, 2023, TUR Tax announced that debts restructured within the scope of Law 7440 can be paid in cash and/or in installments, depending on the preference made.
For those who prefer the cash payment option, payment deadline is Jul. 31, 2023.
In addition, those who prefer to pay in installments must make the first and second installments on time and in full to continue to benefit from restructuring provisions.
Jul. 20, 2023 Payments URL
On Jul. 20, 2023, TUR Tax reiterated information on paying debts restructured within the scope of Law 7440, with updated URL for online payments - www.gib.gov.tr.
Jul. 26, 2023 Deadline Announced
On Jul. 26, 2023, TUR Tax reminded deadline for cash payment and first 2 installments of restructured debts within scope of Law 7440 is Jul. 31, 2023, provided information.
In provinces where force majeure declared due to earthquakes the applications within scope of Law 7440 should be made until Oct. 31, 2023.
First installment (including cash payment) is to be paid by Nov. 30, 2023, the second installment is payable until Jan. 2, 2024, other installments paid in following months.
To continue to benefit from restructuring provisions, cash payment and first two installments must be paid on time and in full.
Possible to apply to pay in installments less than number of installments preferred, in this case, the amount to be paid is adjusted according to the relevant coefficient.
Although installment payment option is preferred, cash payment discount will be available if the entire amount is paid by Jul. 31, 2023.
If all restructured debts paid by Jul. 31, coefficient not applied to restructured debts.
Aug. 2023 Serial No: 4
On Aug. 9, 2023, TUR GVT published general communique of law 7440 restructuring of receivables (serial No: 4) to align it with the force majeure's extension, see #162827.
Aug. 9, 2023 TUR Tax News Item
On Aug. 9, 2023, TUR Tax published news item setting out background to publication of the general communique of law 7440 restructuring of receivables (serial No: 4).
Document dated Aug. 9, 2023, received from TUR Tax Aug. 14, summarized Aug. 16.
Oct. 2023 5th Installment Payment
On Oct. 16, 2023, TUR Tax informed that the 5th installment payment period of debts restructured under the Law 7440 on receivables will end on Tuesday, Oct. 31, 2023.
Dec. 2023 Serial No: 5
On Dec. 13, 2023, TUR GVT published general communiqué of law 7440 restructuring of certain receivables (serial no: 5) to extent installments' payments under Law 7440.
For the regions under the force majeure extension; art 5 detailed various installments.
On Mar. 22, 2024, TUR Tax said that the last day for the 10th installment payment under the restructuring law 7440 is Apr. 1, 2024; payment also via contracted banks.
May 2024 Serial No: 6
On May 16, 2024, TUR GVT published general communiqué of law 7440 restructuring of certain receivables (serial no: 6) to extend payments until Nov. 30, 2024.
Because of a public holiday, until Dec. 2, 2024; second installment must be paid until Dec. 31, 2024, and the other installments must be paid in the following months.
Com serial No: 6, OG 32548, PR, 5/16/2024; PR, 3/22/2024; Comm serial No: 5, OG 32398, PR, 12/13/2023; PR, 10/16/2023; OG 32274, PR 8/9/2023; Comm serial No 4; PR 7/26/2023; PR 7/20/2023; PR 7/6/2023; PR, 6/16/2023; Gd, PR 5/26/2023; Dec 7300, 5/25/2023; Gd, PR, 5/5/2023; Gd, PR, 5/3/2023; Gd, PR, 4/28/2023; OG 32164, PR, 4/15/2023; Comm serial No: 3; OG 32143, PR, 3/25/2023; Law 7440
