The “Law Regarding the Restructuring of Certain Receivables” no.7020 adopted in the parliamentary General Assembly.

The Law Regarding Changes on Certain Laws and Restructuring of Certain Receivables no. 7020 has been adopted in the parliamentary General Assembly on 18 May 2017. However, we would like to remind that it hasn’t been enacted yet since it was not published in the Official Gazette as of the date of our circular.

The Law includes regulation only concerning specified public receivables while comprising the taxes regarding periods prior to 31 March 2017 (including this date) or, in taxes based on declaration, the receivables linked to taxes, tax penalties, late fee and interest for the returns that had to be submitted until this date.

It would be possible to benefit of the Law terms for receivables unpaid despite maturity reached as the Law’s date of promulgation in the Official Gazette or the receivables of which the due dates did not expire.

Taxpayers benefitting of the restructuring under the Law should be paying the whole actual tax. In this state, tax penalties issued linked to the actual amount and late fees/increases will be removed and in spite of that the amount that would be reached by calculating through taking the monthly domestic PPI change rates into account until the promulgation date of the Law should be paid together with the actual tax amount.

This regulation will be enacted as of the Law’s promulgation date.

Also, through the Law no.7020, Article 48/A titled as “Debt deferment for the tax compliant taxpayers” has been added to the Law no.6183 to be following the Article 48. By this arrangement, providing a facility of paying their debt in installments under favorable terms pursuant to the deferment procedure arranged within the aforementioned Law’s Article 48 to the taxpayers meeting their tax liabilities on time but failing to pay debts during the last one year for unpredictable reasons was aimed.

Pertaining to that, the debtor to be benefitting of the term within article should be meeting the requirements provided below:

- to be an annual income or corporate taxpayer for commercial, agricultural or occupational activities for minimum 3 years as of the application date,

- having submitted the tax returns of previous three years from date of application within their legal deadlines,

- a debt with maturity expiration of not more than 1 year as of the date of application should be unpaid despite retaining good will.

The aforementioned regulation will be enacted as of the Law’s date of promulgation to be applicable on maturing receivables as of 1 January 2018.

Our explanations provided above include general information on the issue. No responsibility can be claimed against    
EY and/or  Kuzey YMM ve Bağımsız Denetim A.Ş. due to the implications arising from the context of this document or emerging with respect to its context.


Best Regards,
Kuzey YMM ve Bağımsız Denetim  A.Ş.