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A tax amnesty and restructuring of tax program has been announced by the Ministry of Treasury and Finance after the Law has been enacted (nr.7440/Official Gazette March 12th, 2023).
Scope - Any payables to the tax administrations, customs administrations, social security agency, municipalities, city halls, provincial administrations are able to be restructured – given that the payables are dated before 31/12/2022 and are related to taxes, social security premiums, penalties, late fees, and accrued interest.
Should the due taxes (excluding penalties) be paid in full, and the total penalties (excluding tax procedural penalties) be paid in half, in addition to a charge in lieu of interest as calculated through the domestic PPI, all payables will be settled.
For any due taxes still pending in court, all related payables may be settled by paying half of the tax amount, and adding a charge in lieu of interest as calculated through the domestic PPI.
Tax Base Increase - Taxpayers may also opt in to a voluntary tax base increase for the years between 2018 and 2022, with respect to the announced rates. By doing so, the taxpayers will be exempt from any tax investigations for the related years and types of taxes the procedure was done on. The rates for the specified years are listed below. All figures are denominated in TRY.
| Full Year | Increase Rate | Min. Increase for Real Persons. | Min. Increase for Corporations | |
| Non-Balance Sheet Based Tax | Balance Sheet Based Tax | Corporate Tax | ||
| 2018 | 35% | 63.8k | 94.0k | 200k |
| 2019 | 30% | 66.4k | 99.6k | 215k |
| 2020 | 25% | 70.5k | 105.8k | 230k |
| 2021 | 20% | 75.0k | 112.4k | 260k |
| 2022 | 25% | 105k | 200k | 500k |
Tax Rate: If the taxes were paid on time for the relevant year, the tax rate will be set as 15%, instead of the standard 20%. Should the payment be made in full, there will be a 10% discount. If the process is carried out for the year 2022, the losses realized in that period will not be discountable, and the advance corporate taxes will not be refunded.
Correction of Records - Financial records such as hard assets and receivables from partners may also be corrected as a part of the program. The deadline for applications is 31/05/2023.
Payment - The restructured amount will be payable either in full or in installments. The first payment date is set as 30/06/2023.
Additional (Earthquake) Tax - In addition to the amnesty program, a special additional tax has been announced due to the earthquake relief efforts. From any businesses not based in the earthquake zones, a 10% tax on the tax exemptions and deductions applied on the income of the business, and a 5% tax on income subject to the participation income exemption along with overseas-sourced income certified to bear a tax of 15%, will be levied.
