On 17 November 2020, the Code on Restructuring Some Receivables and Amendment to Some Codes was published in the Official Gazette ("Code"). You can find the official text here (available in Turkish only). The long-awaited Code introduced a restructuring opportunity for public receivables, such as taxes and fines.

Who can apply?

All legal and real persons who have certain public debts within the scope defined below can apply for restructuring.

What is the scope of the restructuring?

Tax and social security premium debts, traffic fines, public educational loan debts and public lease receivables are some of the public receivables that will be restructured according to the Code. Tax restructuring will include income tax, corporate income tax, VAT, private consumption tax, motor vehicle tax, customs duties, real estate taxes and environmental cleaning taxes. In addition, tax penalties and interest incurred on unpaid taxes are also included in the restructuring. The Code also enables the restructuring of unpaid public receivables that were subject to previous restructurings.

What falls outside of the scope of restructuring?

Punitive fines and subsequent administrative fines are exempt from the scope of the restructuring: fines imposed by the Competition Board and the Capital Markets Board, fines regarding the violation of COVID-19 measures, and illegal tobacco consumption. Debts incurred after 31 August 2020, and disputed debts cannot be restructured.

How to apply for restructuring

Persons or entities that would like to benefit from restructuring should apply through the Turkish Revenue Administration website or from the "e-devlet" application, through which Turkish citizens can make the most of the official arrangements. In addition to online application methods, applications can be made personally or by courier.

The deadline for applications is 31 December 2020.


Interest rates to be applied will be more favourable than the legal default interest rate. Debts will be paid in six to eighteen instalments, and payments can be made every two months.

Debtors who prefer to pay in advance and debtors who pay their debts within the period of the first two instalments will receive a discount.

Restructured payments owed to the Ministry of Treasury and Finance and customs will begin in January 2021, while payments owed to the Social Security Institution will begin in February 2021.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.