Restructuring of Public Receivables in Türkiye: Analysis of the General Communiqué on Collection Series B No. 20

The Ministry of Treasury and Finance has published the General Communiqué on Collection (Series: B, No. 20) in the Official Gazette No. 33282, dated June 16, 2026. This administrative act introduces a new framework for the deferral and installment-based payment of public receivables under Article 48 of Law No. 6183 on the Procedure for the Collection of Public Receivables.

For foreign corporations, investors, and local subsidiaries operating in Türkiye, this Communiqué provides a structured mechanism to manage outstanding tax liabilities under favorable interest conditions. This article details the legal scope, procedural requirements, collateral thresholds, and commercial implications of the new restructuring regime under Turkish law.

1. Scope and Eligibility of Debts

The restructuring framework applies to public receivables tracked and collected by tax offices affiliated with the Ministry of Treasury and Finance.

Eligible Debts:
The Communiqué covers all public receivables that:

• Have a statutory due date on or before June 5, 2026.
• Remain unpaid as of June 16, 2026.

Excluded Debts:
Certain tax liabilities are strictly excluded from this deferral mechanism. These include:

• Special Consumption Tax (ÖTV).
• 2026 Advance Tax (Geçici Vergi) to be offset against income or corporate tax.
• Tax loss penalties, late payment interest, and late payment penalties attached to the above taxes.
• Stamp tax applicable to the declarations of the above taxes, along with their respective late payment penalties.

2. Application Procedure and Deadlines

Taxpayers must submit their restructuring applications by August 31, 2026.

Applications must be directed to the specific tax office where the debt is registered. If a taxpayer has outstanding debts across multiple tax offices, a separate application must be filed for each jurisdiction. Furthermore, the application must encompass the entirety of the taxpayer's outstanding debt at the relevant tax office. Partial restructuring at a single tax office is not permitted under this Communiqué.

Filing Methods:

• Electronic submission via the Revenue Administration website (www.gib.gov.tr).
• Electronic submission via the Digital Tax Office (dijital.gib.gov.tr).
• Electronic submission via the e-Devlet portal (www.turkiye.gov.tr).
• Physical submission directly to the relevant tax office.
• Registered mail (the application date is the date of dispatch for registered mail, or the date of receipt by the tax office for standard mail).

3. Installment Structures and the "Severe Financial Hardship" Test

The Communiqué allows for installment plans starting in September 2026. The maximum number of installments granted depends on three factors: the taxpayer's financial condition, the type of public receivable, and the legal status of the debtor.

A. Installments Based on Financial Condition

For corporate taxpayers keeping books on a balance sheet basis, the tax authority assesses "severe financial hardship" using a statutory liquidity ratio. The calculated ratio dictates the maximum installment period:

• Liquidity Ratio of 0.50 or higher: Up to 36 equal monthly installments.
• Liquidity Ratio between 0.30 and 0.49: Up to 48 equal monthly installments.
• Liquidity Ratio of 0.30 or lower: Up to 72 equal monthly installments.

Taxpayers not falling under this corporate assessment metric (e.g., individuals without active commercial registry) are eligible for 48 equal installments.

B. Installments Based on the Type of Receivable

Certain taxes are subject to a strict, shortened installment cap, regardless of the taxpayer's financial hardship status. Debts arising from Value Added Tax (VAT) and Banking and Insurance Transactions Tax (BSMV), including their related penalties, interest, and stamp taxes, are limited to a maximum of 12 equal monthly installments.

C. Public Entities

Municipalities, Special Provincial Administrations, and corporate entities where these public bodies hold more than 50% of the share capital are automatically eligible for 72 equal installments for all debt types.

4. Financial Mechanics: Deferral Interest Rate

A critical advantage of this Communiqué is the application of a reduced deferral interest rate (tecil faizi).

• Debts restructured under this mechanism will accrue an annual deferral interest rate of 29%.
• To calculate the total obligation, the tax office first applies standard statutory late payment penalties (gecikme zammı) from the original due date up to the application date.
• This consolidated principal amount is then divided into the approved number of installments. The 29% annual interest is calculated based on the remaining balance at the end of each month and reflected in the final payment plan.

Taxpayers retain the right to pay installments ahead of schedule, which will result in a recalculation and reduction of the applied deferral interest.

5. Collateral Requirements and Thresholds

Turkish tax law requires collateral (teminat) to secure large public receivables during a deferral period. Article 8 of the Communiqué establishes clear thresholds:

• Debts up to 10,000,000 TL: No collateral is required.
• Debts exceeding 10,000,000 TL: The taxpayer must provide collateral equal to 50% of the amount exceeding the 10 million TL threshold.

Acceptable forms of collateral under Law No. 6183 typically include cash, unconditional bank guarantee letters, government bonds, or mortgages on real estate. The processing of restructuring requests below the 10 million TL threshold is highly automated and can be finalized directly through the Revenue Administration's IT systems.

6. Managing Existing Restructuring Agreements

The Communiqué provides transitional rules for taxpayers who are currently making payments under prior Article 48 restructuring plans.

Active Plans:
For taxpayers with existing plans who do not submit a new application, the interest rate on future installments will automatically be adjusted to the new 29% rate starting from the publication date of this Communiqué (June 16, 2026). Past installments will remain subject to the rates applicable at the time of their payment.

Refinancing Active Plans:
Taxpayers who wish to extend their current installment schedules using the new criteria must submit an application by August 31, 2026. The tax office will issue a new payment plan starting in September 2026, applying the 29% interest rate to the remaining balance. However, the total duration (including past payments) cannot exceed the maximum statutory periods defined in Law No. 6183.

Pending Applications:
Applications submitted prior to June 16, 2026, but still under review, must be explicitly renewed under this Communiqué by August 31, 2026, to benefit from the 29% rate. If the taxpayer declines to renew the application under the new framework, the tax authority will process the pending request under the general provisions, applying the standard 39% annual deferral interest rate.

7. Default Conditions and Revocation Risks

Strict compliance with the payment plan is mandatory. The Communiqué defines the parameters of default (tecilin ihlali).

• A taxpayer is permitted a maximum of two missed or incomplete installment payments per calendar year.
• This allowance is conditional. The missed or incomplete payment must be paid in full by the due date of the subsequent installment, along with additional deferral interest calculated for the delay period.
• If the missed payment is the final installment of the plan, it must be paid by the end of the month following its original due date, complete with accrued interest.

Failure to adhere to these exact conditions constitutes a formal breach. Upon breach, the restructuring agreement is immediately revoked, and the tax authority will initiate aggressive collection proceedings (including electronic asset attachments and bank account freezes) for the entire remaining balance under standard Law No. 6183 procedures.

8. Corporate Governance and Liability of Foreign Directors

Section 13 of the Communiqué contains critical provisions regarding secondary liability for public debts. Under Turkish Commercial Code and Law No. 6183, public debts do not rest solely with the corporate entity.

Joint and Several Liability:
Legal representatives (board members of Joint Stock Companies, managers of Limited Liability Companies), shareholders of Limited Liability Companies, guarantors, and heirs can be held personally liable for the public debts of the principal debtor.

The Communiqué explicitly permits these individuals to apply for restructuring for the portion of the debt for which they are personally liable. For foreign companies operating Turkish subsidiaries, ensuring the subsidiary applies for this restructuring is vital to shield foreign directors and shareholders from personal asset attachment or travel restrictions in Türkiye. Shareholders in ordinary and collective partnerships, who bear joint and several liability for the entirety of the partnership's debts, may also apply directly.

9. Tax Clearance Certificates (Borcu Yoktur Belgesi)

A critical operational requirement for companies in Türkiye is maintaining a clean tax record, which is mandatory for participating in public tenders, receiving progress payments from state entities, or claiming certain investment incentives.

To exclude a restructured debt from the "Tax Debt Status Certificate", the taxpayer must have paid at least 10% of the total restructured principal.

• If 10% is paid: The debt will not appear on the certificate.
• If less than 10% is paid: The difference between the 10% threshold and the amount actually paid will be listed as an outstanding debt on the certificate.
• If no payment is made against the 10% threshold: The entire debt appears on the certificate.

10. Operational Constraints for Motor Vehicles

For corporate fleets and logistics companies, motor vehicle taxes (MTV), traffic fines, and highway toll penalties are fully eligible for restructuring.

Structuring these specific debts removes the block on obtaining periodic technical inspections (TÜVTÜRK fenni muayene) or flight worthiness certificates. However, the Communiqué maintains a strict encumbrance on asset transfers. A motor vehicle cannot be legally sold or its title transferred until the entirety of the restructured debt associated with that specific vehicle is paid in full. Firms planning fleet liquidation must account for these immediate cash flow requirements prior to sale.