Turkey Sets August 31 Deadline for Tax and Social Security Debt Restructuring

Turkey has announced a significant debt restructuring opportunity for individuals and businesses owing taxes and social security premiums. The deadline for applications is August 31, providing a limited window for debtors to take advantage of the program.

Those who apply within the specified period and meet the necessary conditions can benefit from substantial advantages. These include the possibility of long-term installment payments, reduced interest rates on their outstanding debts, and easier collateral requirements. The initiative aims to alleviate financial burdens and encourage compliance.

The restructuring covers a wide range of public debts. This includes taxes owed to revenue administration, such as income tax, corporate tax, value-added tax (VAT), and motor vehicle tax. It also extends to traffic fines, administrative fines, and student loan debts. Additionally, social security debts, including insurance premiums and Bağ-Kur contributions, are included in the program.

Applications for tax debts can be submitted through the Revenue Administration's website, the Digital Tax Office, e-Devlet, or local tax offices. For social security debts, applications must be made to the relevant social security centers with the required documentation. Installment plans can extend up to 72 months for certain debtors, with options for interest discounts and waivers on collateral for debts up to 10 million Turkish Lira. Initial payments are due by September 30 for tax debts and August 31 for social security debts.