New Developments
With Presidential Decree No. 4420 ("Decree") published in the Official Gazette dated 27 August 2021, No. 31581, the deadline to benefit from and pay the first installment regarding the tax amnesty and tax base/tax increase, which was brought within the scope of Law No. 7326 on Restructuring Certain Receivables and Amending Certain Laws ("Law No. 7326"), has been extended for one month.
What Does the Decree introduce?
Law No. 7326 introduces a new tax amnesty and tax base increase law. It covers the tax receivables, the delay interest and tax penalties derived from these tax receivables, and other penalties not derived from a tax principal related to the periods before 30 April 2021. We discussed this tax amnesty and tax base increase in our bulletin dated 14 June 2021 (you can find the bulletin here).
Deadline for envisaged application to benefit from this amnesty was stipulated as 31 August 2021. With the Decree, the deadline for making this application has been extended by one month and the last day has been rearranged as 30 September 2021. In addition, the first installment payment period (30 September 2021) for the relevant applications has been extended by one month. Thus, the last day of the first installment payment period is now rearranged as 1 November 2021.
Conclusion
With the Decree, the duration of the tax amnesty and tax base/tax increase opportunity introduced by Law No. 7326 has been extended, and additional time has been provided to taxpayers who have not yet made a decision on the issue.
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.