Turkey extends deadlines for public debt restructuring applications and start of payment duty

On 20 December 2020, Turkey enacted Presidential Decision No. 3433, which extends the period for applying and making payments vis-à-vis new restructuring regime on receivables contained in the Law on Restructuring of Certain Receivables and Amending Certain Laws No 7256 (“Restructuring Law”), which came into force 17 November last year.

The Restructuring Law allows for the restructuring of certain public receivables and introduces changes in tax legislation. Public debts that are subject to restructuring under the Law include taxes, tax penalties, delay interest, late payment fees, administrative penalties, public receivables subject to enforcement proceedings, customs duties and penalties, customs duties and penalties related to the Social Security Institution, receivables of municipalities and special provincial administrations, and certain other public receivables.

Taxpayers who wanted to take advantage of the law had to submit an application to the competent administrative authority by 31 December 2020. However, the newly issued Presidential Decision No. 3433 extended the deadline for submitting an application and paying the first instalment by one (1) month.

With the enactment of this Decision, taxpayers who wish to take advantage of the Restructuring Law must submit their application to the competent administrative authority by 1 February 2021. Following the application, the first installment of the restructured debt (including immediate payments) must be paid by 1 March 2021.

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See this previous Law-Now article for more information on the Restructuring Law enacted on 17 November 2020.