New tax debt in Turkey restructuring program offers a valuable opportunity for taxpayers to settle outstanding liabilities through extended repayment periods of up to 72 months.
The Turkish government has introduced a new opportunity for taxpayers facing financial difficulties to restructure outstanding tax liabilities through extended payment terms and reduced financing costs.
Published in the Official Gazette on 16 June 2026, the Collection General Communiqué (Series B, No. 20) allows eligible taxpayers to defer and repay certain public receivables owed to Turkish tax offices through long-term installment arrangements.
The new regulation aims to support businesses experiencing liquidity challenges while helping tax authorities improve the collection of outstanding public receivables.
For companies operating in Turkey, this measure provides valuable flexibility in cash flow management and financial planning.
Overview of the New Tax Debt Restructuring Scheme
Under the Communiqué, taxpayers may apply for installment payment arrangements covering eligible tax debts that had already become due before 5 June 2026 and remained unpaid as of the publication date of the regulation.
The scheme allows businesses and individuals to spread payments over several years while benefiting from a reduced deferment interest rate compared to traditional enforcement procedures.
The initiative is particularly relevant for companies seeking to preserve working capital, maintain business continuity, and avoid aggressive debt collection measures.
Which Tax Debts Are Covered?
The restructuring program applies to public receivables administered and collected by Turkish tax offices.
Eligible debts generally include unpaid tax liabilities that:
- Became due on or before 5 June 2026;
- Remained outstanding as of 16 June 2026;
- Are under the responsibility of the Turkish tax administration.
The measure provides taxpayers with a practical mechanism to regularize their tax position and reduce financial pressure.
Tax Debts Excluded from the Program
Not all tax liabilities qualify for the new restructuring arrangement.
The following debts are specifically excluded:
- Special Consumption Tax (SCT)
- Advance corporate tax payments
- Advance income tax payments
- Related tax penalties
- Late payment charges
- Stamp tax obligations connected to the excluded taxes
Taxpayers should therefore conduct a detailed review of their outstanding liabilities before submitting an application.
Application Deadline: 31 August 2026
Taxpayers wishing to benefit from the restructuring program must submit their application no later than 31 August 2026.
Applications may be filed through several official channels:
- Digital Tax Office (Dijital Vergi Dairesi)
- Revenue Administration online portal
- e-Government platform (e-Devlet)
- Local tax offices
Businesses should avoid waiting until the final days of the application period to ensure sufficient time for reviewing their financial position and preparing the necessary documentation.
Long-Term Installment Options Available
One of the most attractive aspects of the new regulation is the possibility of spreading tax payments over an extended period.
The maximum repayment term depends on the taxpayer’s liquidity ratio.
Up to 36 Months
Taxpayers with a liquidity ratio of 0.50 or higher may benefit from installment plans of up to 36 monthly payments.
Up to 48 Months
Taxpayers whose liquidity ratio falls between 0.30 and 0.50 may obtain repayment schedules extending to 48 monthly installments.
Up to 72 Months
Businesses with a liquidity ratio of 0.30 or lower may qualify for repayment periods of up to 72 months, equivalent to six years.
This extended payment option can significantly reduce pressure on cash flow and support long-term financial recovery.
Special Rules for VAT and BITT Debts
The regulation introduces stricter limitations for certain indirect taxes.
For debts arising from:
- Value Added Tax (VAT)
- Banking and Insurance Transactions Tax (BITT)
the maximum repayment period is limited to 12 monthly installments.
Businesses with significant VAT obligations should therefore carefully assess their repayment capacity before applying.
Special Provisions for Municipalities
Municipalities and companies controlled by municipalities may benefit from more favorable repayment conditions.
Entities in which municipalities hold more than 50% of the capital can access installment plans extending up to 72 months for eligible debts covered by the Communiqué.
This provision aims to support local administrations and public-service entities facing financial constraints.
Reduced Deferment Interest Rate
The restructuring scheme applies a deferment interest rate of 29% per year to restructured debts.
While interest continues to accrue during the repayment period, the rate is designed to provide a more manageable financing solution compared with alternative enforcement procedures and collection measures.
For many businesses, the opportunity to secure a predictable repayment schedule may outweigh the financing cost associated with the deferment.
Collateral Requirements
The regulation also establishes specific collateral rules depending on the amount of outstanding debt.
Debts Up to TRY 10 Million
No collateral is required for restructured debts totaling TRY 10 million or less.
Debts Exceeding TRY 10 Million
For liabilities above TRY 10 million, taxpayers must provide collateral equal to 50% of the portion exceeding the threshold.
This approach seeks to balance taxpayer relief with the protection of public receivables.
Benefits for Businesses Operating in Turkey
The new restructuring framework offers several advantages for businesses facing temporary financial difficulties.
Potential benefits include:
- Improved cash flow management
- Reduced short-term financial pressure
- Greater predictability of future payments
- Avoidance of enforcement actions
- Opportunity to regularize tax compliance status
- Improved financial planning and budgeting
For foreign investors and multinational companies operating in Turkey, maintaining tax compliance while preserving liquidity remains a critical business objective.
Why Companies Should Review Their Tax Position Now
Given the limited application period, companies should assess their tax liabilities as soon as possible.
Businesses should consider:
- Reviewing all outstanding tax debts
- Determining which liabilities qualify
- Calculating liquidity ratios
- Evaluating available installment options
- Assessing collateral requirements
- Preparing application documentation
Early preparation can help avoid last-minute complications and ensure access to the most favorable repayment terms.
How Azkan Group Can Help
At Azkan Group, we support foreign investors, multinational companies, and local businesses with tax compliance, accounting, payroll, and corporate administration services in Turkey.
Our team assists clients with:
- Tax debt assessments
- Tax compliance reviews
- Corporate accounting
- Payroll management
- Financial reporting
- Company formation
- Employer of Record (EOR) services
- Ongoing regulatory compliance
We help businesses understand new tax regulations and identify practical solutions to manage their financial obligations effectively.
With flexible installment options, reduced financing costs, and simplified application procedures, the scheme can provide meaningful relief to businesses facing cash flow challenges.
However, the application deadline of 31 August 2026 leaves a limited window for action. Companies should review their tax position promptly and determine whether they can benefit from the new arrangement.
For assistance with Turkish tax compliance, payroll, accounting, or corporate administration, contact Azkan Group and speak with our local experts.
