Which debts are under restructuring?
Tax configuration in all details! Which debts are under restructuring? Will the configuration be broken if the installments are delayed?
The restructuring arrangement adopted by the TBMM Plan and Budget Commission closely concerns a large segment of the society. We investigated the answers to the curious questions in the configuration that will cover a total size of 500 billion lira.
1- What debts does the configuration cover?
Basically, it contains provisions regarding the structuring of debts to tax offices, namely the Ministry of Treasury and Finance, Social Security Institution, customs directorates, municipalities, special administrations, YIKOB. In addition, TOBB, TESK, Bar Association, TÜRMOB, exporters 'unions' subscription receivables, KOSGEB's loan receivables, loans from the budget of the Ministry of Industry to organized industrial zones and industrial site building cooperatives are also included.
Lease receivables and revenue shares arising from easement rights and leasing transactions of companies owned by private administrations, municipalities and municipalities, companies owned by more than 50 percent, General Directorate of Foundations and fused foundations, development agencies' special administrations, municipalities and industry Chambers, and the receivables arising from the services provided by the Turkish Standards Institute are also restructured.
2- Which date will be taken as basis in the configuration?
Debts before 31 August 2020 and before will be covered by the law. Disputed receivables are not covered. You can apply for configuration until the end of the year. Payments to the Ministry of Treasury and Finance and customs will start in January 2021, and payments to the Social Security Institution will start in February.
3- How will the configuration be?
D-PPI, which is determined as 0.35 percent, will be taken as basis in the structuring of debts. Instead of delay hike or interest, the D-PPI coefficient will be taken into account and options will be offered to the borrower.
6 to 18 installments will be available, and payments will be made every two months. Borrowers who prefer to pay in advance will be discounted from the D-PPI amount calculated at the rate of 90 percent. Debtors who pay their debts in the first 2 installments within the payment period will be given a 50 percent discount in D-PPI.
Borrowers who choose to pay in installments will face an additional obligation for the installment period with a coefficient determined by law. This will be 4.5 percent interest, as in previous configurations.
According to an example given in the commission negotiations, for example, 80 TL delay hike was committed to a 100 TL tax. While recalculating, 80 liras will be deleted, in such a case, the D-PPI increased to 40 lira and the debt dropped to 140 lira. If paid in advance, the payment will be 104 lira. In other words, 4 lira of the D-PPI amount will be paid, 36 lira will be deleted.
If paid in installments, options will be activated again. For example, 6 installments were selected. 140 liras will be multiplied by a coefficient of 0.045, that is 4.5 percent per year, and this figure will be divided into installments.
4- Which penalties ka