Default Interest and Postponement Interest Rates which are Imposed on Public Receivables Updated

The Presidential Decree numbered 8484 ("Decree") and the General Communiqué on Collection (Serial: C, No: 8) ("Communiqué") which was prepared by the Ministry of Treasury and Finance ("Ministry") in line with the Decree entered into force after being published in the Official Gazette dated May 21, 2024 and numbered 32552.

• Pursuant to the Communiqué, the default interest rate, which has been applied as 3,5% as of 14/11/2023 in accordance with the Law on the Procedure for Collection of Public Receivables numbered 6183 ("Law"), has been determined as 4,5% as of 21/5/2024.
• As a result of the change in the default interest rate, the default interest, regret raise and explanation raise have also been changed to 4.5%.
• According to the Communiqué, the annual deferral interest rate applied pursuant to Article 48 of the Law has been increased from 36% to 48%.

Provisions on Transition:

• For the public receivables to be postponed based on the applications made before the publication of the Communiqué and for the public receivables that have been postponed before the publication date of the Communiqué and are being paid in accordance with the postponement conditions, the old postponement interest rate will be applied as of the application date as long as they are paid in accordance with the postponement conditions.
• However, in the event of a violation of the postponement for the public receivables that have been requested for postponement before the publication date of the Communiqué and the request has been accepted and postponed, if a new request has been made, the old postponement interest rate will be applied until the date of publication of the Communiqué, and 48% postponement interest rate will be applied to the installment amounts to be paid after this date.

The full text of the Decree is available (in Turkish) here.

The announcement and explanatory memorandum of the Turkish Revenue Administration regarding the Decision are available (in Turkish) here.

The full text of the Communiqué is available (in Turkish) here.

The announcement and explanatory memorandum of the Turkish Revenue Administration regarding the Communiqué are available (in Turkish) here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr