Attention those with tax, traffic fine, student loan debt: Deadline is August 31!

Turkish taxpayers with outstanding debts, including taxes, traffic fines, and student loan obligations, have a limited window to benefit from a government debt restructuring program. The application deadline for this initiative is August 31. The program allows eligible individuals and entities to settle their overdue public receivables, which were due by June 5 but remained unpaid as of June 16.

Under the new regulation, various types of debts can be installment-based. These include income and corporate taxes, value-added tax (VAT), various fees, traffic penalties, usufruct rights payments, and judicial fines. However, specific exclusions apply, such as special consumption tax and provisional taxes for 2026, along with related penalties and interest. Stamp duties accrued through tax declarations are also not included in this specific restructuring offer.

The annual interest rate for these installments has been set at 29%. For debts not exceeding 10 million Turkish Lira, collateral is not required. However, amounts exceeding this threshold necessitate collateral equivalent to half of the excess sum. Most debts can be paid in installments up to 72 months, while VAT debts are limited to a 12-month installment period. The first installment payment is due by September 30, with subsequent payments made monthly. Failure to pay or underpaying more than two installments within a calendar year will result in the forfeiture of the restructured terms.