Presidential Resolution 7300, which was recently announced, extends the deadline for applying for a tax amnesty for outstanding government receivables. Reported by the Turkish Tax Authority (TRA).
According to Law No. 7440 of March 9, 2023, Turkey has a tax amnesty regime for persons with tax arrears. Initially, applications for participation were accepted until May 31 of the current year. However, the Turkish authorities decided to meet the needs of private business representatives and extend the deadlines:
- acceptance of applications – until June 30 inclusive;
- payment of the first installment – until July 31 inclusive.
The new tax amnesty program regulated by Law No. 7440 covers the following government fees and requirements:
- insurance premiums;
- customs duties;
- administrative fines.
As part of the tax amnesty, taxpayers have access to:
- restructuring of outstanding tax and payables to the state;
- settlement of current tax disputes;
- voluntary increase in the tax base in exchange for a ban on audits of past tax returns;
- correcting business records without imposing penalties and setting interest on late payments.
The following are subject to restructuring:
- the principal amount of the debt – an installment plan of up to 48 months is provided;
- tax procedural penalties – it is allowed to pay 50% of the amount due;
- overdue interest on debt – 90% discount when paying all the debt at once, as well as recalculation of interest based on the internal producer price index.
Taxpayers in Turkey can settle tax disputes that are pending in the courts. Depending on the stage of the proceedings, the amounts of discounts on the amount of taxes assessed will be as follows:
- accruals submitted before March 12, 2023, but not yet appealed – 50%;
- the court did not make a decision on the appeal until March 12 – 50%;
- the court decision was made in favor of the taxpayer – 90%.
With the settlement of tax disputes, the amnesty participant is exempted from paying fines and interest accrued on the amount of the debt.