Announcement Regarding General Communiqué on the Restructuring of Certain Receivables According to the Law No. 7440

General Communiqué on the Restructuring of Certain Receivables According to the Law No. 7440”  (the “Communiqué”) has been published in the Official Gazette dated 9 August 2023 and numbered 32274, by the Revenue Administration Presidency of the Ministry of Treasury and Finance.

In the relevant Communiqué, it has been decided that the state of force majeure in the provinces of Adıyaman, Hatay, Kahramanmaraş, Malatya and the districts of İslahiye and Nurdağı in Gaziantep, which were declared a state of force majeure due to the 6 February 2023 Earthquake and which are still in this state, will continue until 30 November 2023.

Additionally, new regulations have been introduced regarding the changes in payment dates for the parts of restructuring installments falling on official holiday periods in the aforementioned provinces and districts, as well as the application periods designated for taxpayers to benefit from basis and tax increases.

In this context, it has been stipulated that applications determined within the scope of the Law Numbered 7440 for the mentioned provinces and districts should be submitted by 29 February 2024. Consequently, as the payment date of the first installment to be paid as a result of these applications coincides with the 31 March 2024 official holiday, the payment deadline for the first installment has been determined as 1 April 2024. The second installment should be paid by 30 April  2024, and the subsequent installments should be paid in the following months.

For taxpayers located in the provinces and districts mentioned above, where the force major situation persists, the application period for benefiting from maturation and tax increase has been extended as until 29 February 2024. The payment deadline for corporate, income, value-added tax (“VAT”), withholding tax for income tax, and withholding tax for corporate tax has been determined as until 31 March 2024. Upon request, taxpayers may initiate payments with the first installment starting from March 2024, divided into 12 equal monthly installments.

For taxpayers subject to the regulation, 29 February 2024 is determined as the date for submitting the VAT stock declaration forms and the accompanying inventory lists. The same payment period applies to the amounts accrued due to the declarations.

The Communique also regulates that the taxpayers who declare the goods subject to Special Consumption Tax ("SCT") within the scope of Law Numbered 7440 but cannot submit the purchase documents should declare the SCT amount to be applied over the amount and imputed prices of the goods on the date of declaration until 29 February 2024 and pay it within the same period.

The Communiqué has entered into force on the date of its publication, effective as of 9 August 2023, and you may find the detailed provisions of the Communiqué in the Official Gazette.