Many of the public receivables, accrued before 31 March 2018, related to taxes and social security premiums, and subsidiary receivables associated with them will be restructured.
After Turkish PM Yıldırım has announced his government’s economic package that contains social reforms and restructuring of some public receivables including SSI premiums and tax debts on Monday this week, the “Draft Law on Restructuring Some Receivables,” has been accepted in Plan and Budget commission and expected to get through Parliament well before the elections that will held on June 24, 2018.
SCOPE OF THE LAW
The law will be applicable to following receivables provided that they accrued before 31 March 2018;
* All types of taxes and tax penalties,
* Administrative monetary fines
* Insurance premium, group insurance premium, pension deduction and institution’s contribution, unemployment insurance premium, social security support premiums and subsidiary receivables associated with principles receivables (penalties, default interests and late,)
* Customs duties,
* Estate tax,
* The motor vehicle tax and their tax penalties, default interests and late fees.
RESTRUCTURED PREMIUM DEBTS
Only the “Domestic PPI” applied amount of principle receivable will be collected, and delay penalty and default interests will be waived.
In the collection of receivables; Monthly Change Ratio of Domestic Producer Price Index (Domestic PPI / Yİ-ÜFE) will be applied to principal amount of;
“Insurance premium, pension deduction, unemployment insurance premium, social security support premium, irredeemable voluntary insurance premium and group insurance premium, general health insurance premium, and SSI related stamp tax, special transaction tax, and contribution to education” receivables accrued before 31 March 2018
However, the delay penalty and default interests (subsidiary receivables) applied to these principle amounts will not be collected, provided that PPI applied amount of principle receivable is paid.
In short, the amount to be collected = principle amount of receivable*PPI.
The same will be applied to social security support premium receivables, accrued on or before 31 March 2018, related to retired persons who continue to work independently.
Debts may be paid bimonthly in 6-9-12-18 equal installments. First installment and advanced payments should be paid until 31 August 2018.
Half of the principle amount of receivables related to unpaid administrative fines imposed for the acts conducted before 31 March 2018 will be deleted. In other words, “Domestic PPI” will be applied only to half of the principal amount of administrative fine.
Similar principles, such as Domestic PPI will be applied to tax receivables. We will inform you in details when the application circulars are issued.