Under General Communiqué No. 49 on the Law of Independent Accountancy, Financial Advisory, and Sworn-in Financial Advisory, published in the Official Gazette dated December 30, 2025 (No. 33123), income and corporate taxpayers must now submit a certification report prepared by a Sworn-in Certified Public Accountant (YMM) in order to benefit from certain exemptions, deductions, and applications reported on their tax returns. In this article, we summarize the scope of this certification requirement, the monetary thresholds, and the consequences of failing to submit the report.

What Does the Certification Requirement Cover?

Importantly, this requirement is not a blanket obligation covering all exemptions and deductions on a tax return. It applies only to the specific exemptions, deductions, and applications listed in the table under the second paragraph of Article 4 of the Communiqué. The regulation applies from corporate tax returns for the 2025 fiscal year onward, directly affecting returns filed in 2026.

What Are the Monetary Thresholds?

The certification requirement is triggered by the following thresholds:

• Amounts exceeding TRY 500,000 for each individual exemption/deduction item shown on a separate line of the return,
• Amounts exceeding TRY 1,000,000 for the combined total of these items.

If either threshold is exceeded, a YMM certification report becomes mandatory for the relevant exemption/deduction. For income taxpayers, the requirement covers certain items shown on separate lines of the return; for corporate taxpayers, the scope is broader, covering 21 separate categories. Importantly, this regulation does not only apply to high-revenue “full certification” taxpayers — it also applies to businesses with lower revenue that report a significant exemption or deduction amount on their return.

Report Deadline and Submission Method

Certification reports must be submitted electronically through the Digital Tax Office within 2 months following the tax return filing deadline (3 months for real estate investment trust earnings). Taxpayers who already have a full certification agreement do not need to submit a separate report, provided the matters covered by the Communiqué are included in their full certification report; however, YMMs remain jointly and severally liable with the taxpayer for the accuracy of the certification.

What Happens If the Report Isn’t Submitted?

If the certification report is not submitted on time, the process works as follows:

• The taxpayer is given an additional grace period to submit the report.
• If the report is still not submitted by the end of this grace period, the taxpayer loses the right to benefit from the relevant exemption or deduction.
• A special irregularity penalty also applies (set at TRY 330,000 for 2025).

Recommendations for Taxpayers

• Check in advance whether the exemption and deduction items on your return exceed the TRY 500,000 / TRY 1,000,000 thresholds.
• If you do not have a full certification agreement and have an exemption/deduction exceeding the thresholds, remember that a standalone YMM certification report is required for that specific item.
• Start the certification process immediately after filing your tax return; don’t leave the 2-month (or 3-month, for REITs) window until the last day.
• Work with your CPA to confirm which of your exemptions/deductions fall under the table in Article 4 of the Communiqué — not every exemption or deduction is covered.

At Mete CPA & Auditing, we support you from determining whether the exemptions and deductions on your tax return fall under the certification requirement, to ensuring your YMM certification report is completed accurately and on time. Contact us to review your situation.

When a company holds cash in excess of its ordinary business needs, or lends money to its partners, one of the most common issues raised in tax audits is which interest rate should be used in the “adat” calculation — the notional interest calculation applied to such balances. Turkey’s Council of State (Danıştay) has established a clear line of precedent on this issue. In this article, we explain what the adat calculation is, which interest rate should be used according to the Council of State, and its tax consequences.

What Is the Adat Calculation?

“Adat” refers to the notional interest calculation applied to cash held in a company’s till in excess of its ordinary operating needs, or to funds lent to partners without charge. The tax administration closely monitors such situations, treating them as carrying a risk of disguised profit distribution when company resources are made available to partners or related parties free of charge. To eliminate this risk, taxpayers are expected to calculate notional interest on the amounts involved at a market rate and record it as income.

Which Interest Rate Should Be Used?

The order of priority for determining the applicable interest rate in an adat calculation is as follows:

• If an internal comparable exists: the interest rate applied to the company’s own bank loans should be used.
• If no internal comparable exists (external comparable): according to the Council of State’s well-established case law, the rediscount interest rate announced by the Central Bank of the Republic of Turkey (CBRT) should be used.

Why the Rediscount Rate, Not the Advance Rate?

In practice, the tax administration sometimes bases adat calculations during audits on the CBRT’s advance interest rate instead. However, the well-established approach adopted by the Council of State in numerous rulings finds this practice unlawful. According to the Council of State, the interest rate that should be applied in adat calculations relevant to determining the tax base is the rate applied to rediscount transactions; where a calculation is instead based on the advance interest rate, the portion exceeding the rediscount rate is considered unlawful. Since the rediscount and advance interest rates are set for different purposes, using one in place of the other is not accepted by the Council of State.

Current Rediscount and Advance Interest Rates

Rates set by the CBRT are updated periodically and take effect through communiqués published in the Official Gazette. As of the current period, the discount interest rate applied to rediscount transactions for bills with no more than 3 months remaining to maturity has been set at 9.75% annually, while the rate applied to advance transactions has been set at 10.75% annually. The gap between these two rates directly affects the direction and size of any tax base adjustment if the wrong rate is applied.

Tax Consequences of Adat Interest

Adat interest calculated at the correct rate gives rise to two separate tax obligations for the taxpayer:

• Corporate tax: the calculated adat interest is treated as income, included in the company’s taxable profit, and subject to corporate tax.
• VAT: since lending money to partners is treated as a financing service under the VAT Law, VAT must be calculated and declared on the adat interest amount.

Recommendations for Taxpayers

• Regularly monitor your till balance and amounts lent to partners; identify any excess over your ordinary cash needs.
• Check for an internal comparable first (your own bank loan interest rate, if any) when performing an adat calculation.
• If no internal comparable exists, base the calculation on the CBRT rediscount interest rate; avoid using the advance interest rate.
• If you face a tax assessment based on the advance interest rate during an audit, consider your right to object by citing the Council of State’s well-established case law.
• Review your adat interest calculations and related VAT/corporate tax filings together with your CPA.

At Mete CPA & Auditing, we support you throughout the entire process — from ensuring your adat calculations align with Council of State precedent, to preparing a solid defense in the event of a tax audit. Contact us to review your situation.

Properly closing the Customs Exit Declaration (Gümrük Çıkış Beyannamesi, “GÇB”) for export transactions is key to avoiding serious consequences such as tax penalties, loss of incentives, and delayed VAT refunds. In this article, we summarize the 7 key steps in the GÇB closing process and the risk areas to watch for.

What Is a GÇB and Why Must It Be Closed?

The Customs Exit Declaration (GÇB) is the official document confirming that goods have been exported from Turkey’s customs territory. However, filing the declaration alone is not enough — a series of follow-up steps, from bringing export proceeds into the country to filing the VAT refund, must be completed in full to close the file. A GÇB file left incomplete can create risks of tax audits, incentive clawback, or administrative fines under foreign exchange regulations.

7 Key Steps in the GÇB Closing Process

1. GÇB Information

Verify that the declaration number is correct, and that the HS code (Harmonized System / customs tariff classification), quantity, and amounts match the invoice exactly.

2. Repatriation of Export Proceeds

Confirm whether the export proceeds were brought into the country within the legal deadline, and whether an Export Proceeds Acceptance Certificate (İBKB) or Foreign Exchange Purchase Certificate (DAB) was issued.

3. Invoice Verification

The e-export invoice must match the GÇB exactly; the currency and amount must be identical on both documents.

4. Actual Export Date

Check whether the declaration’s closing date is consistent with the accounting records.

5. Foreign Exchange Follow-Up

Confirm whether any open (unclosed) export file remains and whether bank records are up to date.

6. If an Inward Processing Certificate (DİİB) Applies

For exports made under an Inward Processing Permit Certificate (DİİB), check whether the transaction has been recorded against the export commitment and whether the records required to close the certificate are ready.

7. VAT Refund

Confirming that the GÇB has been closed and that the correct documents have been attached to the refund file is a prerequisite for the VAT refund process to conclude without delay.

Risk Areas to Watch For

Risk areas that deserve particular attention in this process include:

• Incomplete collection: the full export proceeds not having been brought into the country.
• Over- or under-declaration: inconsistencies between the amount declared on the GÇB and the invoice or amount collected.
• Incorrect HS code: misclassification of the goods’ customs tariff position.
• Open foreign exchange file: bank files left unclosed because entry of export proceeds was not completed.
• Overdue export proceeds: proceeds not brought into the country within the legal deadline (as a general rule, 180 days from the actual export date).

Overlooking these risk areas can result in tax penalties, loss of incentives, delayed VAT refunds, and administrative fines under foreign exchange regulations.

Deadline for Repatriating Export Proceeds

Under Communiqué No. 2018-32/48 relating to Decree No. 32 on the Protection of the Value of Turkish Currency, and the CBRT’s Export Communiqué, proceeds from export transactions carried out by residents of Turkey must, as a rule, be transferred or brought in directly and without delay following the importer’s payment. As a general rule, the deadline for repatriating proceeds cannot exceed 180 days from the actual export date. Once the proceeds are brought into the country, banks must issue an İBKB or DAB.

Recommendations for Exporters

• Apply the 7-step checklist in full for every GÇB file.
• Confirm that export proceeds were repatriated within the 180-day deadline and that an İBKB/DAB was issued.
• Regularly monitor any open foreign exchange files and keep your bank records up to date.
• Make sure the GÇB is closed before filing a VAT refund claim.
• Don’t neglect the commitment-closing process for exports made under an Inward Processing Certificate (DİİB).

Customs transactions are among the data sources feeding the AI-powered KURGAN risk analysis system, which makes fully and promptly closing your GÇB files important from this angle as well.

At Mete CPA & Auditing, we support you throughout the entire process — from fully closing your GÇB files and ensuring compliance with foreign exchange regulations, to tracking your VAT refund process and identifying potential risks in advance. Contact us to review your situation.

The KURGAN risk analysis system we covered in an earlier article doesn’t just monitor invoices and e-ledger records — it also closely tracks spending on corporate credit cards. Banking transactions (POS, EFT/wire transfers, credit card payments) are evaluated by risk analysis centers and compared against a company’s commercial activity. In this article, we explain why corporate credit card spending has become such a critical area of scrutiny, and what precautions taxpayers should take.

Why Credit Card Spending Is at the Center of Tax Audits

According to data from the Interbank Card Center (BKM), domestic and international spending on credit cards shows a striking increase every year. Such a large, fully digitally traceable dataset naturally becomes a priority for the tax administration’s risk analysis. Every credit card transaction implies the existence of income that financed it — so inconsistencies between spending and declared income stand out directly in KURGAN’s risk scoring.

Which Expenses Create Risk?

In practice, the most common risk area is recording personal expenses made on company-issued credit cards as business expenses. It is particularly conspicuous when company partners purchase luxury vehicles, home goods, or similar assets for themselves or family members in a manner disproportionate to their official commercial activity. This type of spending can create two distinct risks:

• Tax risk: If the partners have no other income, these amounts may be treated as profit distributed by the company under Article 94/15-b of the Income Tax Law — resulting in a significant tax base adjustment and penalties on both the corporate tax and withholding tax fronts.
• MASAK risk: Acquiring assets disproportionate to one’s official commercial activity may be evaluated under anti-money laundering legislation; if the source of the transaction cannot be established, the Financial Crimes Investigation Board (MASAK) may launch an investigation, and the relevant assets may be seized.

Why Reconciliation with Accounting Records Is Critical

KURGAN cross-checks credit card activity against a company’s e-invoice, e-ledger, and tax return data. For an expense to be accepted as a legitimate business expense, it must:

• Be directly related to the company’s line of business,
• Be supported by a legal document such as an invoice or receipt,
• Be recorded in the accounting books fully and on time.

When these three conditions are not met, the expense may be disallowed and the related VAT deduction rejected; recurring inconsistencies can trigger an Explanation Letter process.

Why Timely Submission of Statements Matters

Submitting corporate credit card statements and related expenditure documents to your CPA within the first week of each month is critical — both for keeping accounting records accurate and timely, and for being prepared in case of a potential Invitation to Explain. Statements submitted late or without adequate supporting documents create time pressure during month-end filing and increase the risk of reconciliation gaps.

Recommendations for Taxpayers

• Use corporate credit cards only for expenses directly related to the business; strictly separate personal spending.
• Obtain an invoice or receipt for every expense and keep these documents together with your statements.
• Submit credit card statements and supporting documents to your CPA within the first week of each month.
• Make sure partners use their personal cards, not the company card, for personal spending.
• Consult your CPA before making large or unusual purchases.

At Mete CPA & Auditing, we help you assess whether your corporate credit card spending is reconciled with your accounting records and identify potential risk areas in advance. Contact us to review your situation.

Turkey’s Ministry of Treasury and Finance has fully digitalized the cross-verification (karşıt inceleme) process used by Sworn-in Certified Public Accountants (YMM), through Communiqué No. 1 on the electronic submission of cross-verification records attached to YMM certification reports, published in the Official Gazette dated December 24, 2025 (No. 33117). In this article, we summarize how the process works, the transition timeline, and the penalties that apply when a response is not submitted on time.

What Is a Cross-Verification Record?

When preparing certification reports — such as full certification or VAT refund reports — YMMs conduct cross-verification to confirm the authenticity of transactions between the taxpayer and the companies it does business with. The records produced through this process form an integral part of the certification report. Under the new regulation, these records are no longer prepared on paper; they are now created, approved, and sent to taxpayers electronically through the Digital Tax Office (dijital.gib.gov.tr).

An important threshold: for 2026, cross-verification is not mandatory for documents with a value (excluding VAT) of up to TRY 150,000.

Transition Timeline

• January 1 – June 30, 2026: Electronic submission is optional; paper records remain valid during this period.
• As of July 1, 2026: Electronic submission becomes mandatory. Cross-verification records prepared on paper after this date cannot be submitted to tax offices; even if submitted, they carry no legal validity and are treated as “never having been prepared.”

This can cause a YMM’s certification report to be considered incomplete and may halt processes such as VAT refunds for the taxpayer — meaning this is no longer solely the YMM’s responsibility to track, but the taxpayer’s as well.

What Taxpayers Must Do: The 30-Day Window

Taxpayers subject to cross-verification must respond to the YMM’s request within 30 days of notification. Responses are treated as an official document signed by the taxpayer or their authorized representative. Taxpayers may also grant sub-user authorization to their accountant (SM/SMMM) under an agency and liability agreement, allowing the accountant to manage this process on their behalf.

What Happens If You Don’t Respond in Time?

Taxpayers who fail to respond to a cross-verification request within the deadline, or who provide incomplete or inaccurate information, are subject to a special irregularity penalty under Article Mükerrer 355 of Tax Procedure Law No. 213. For 2026, this penalty was set at TRY 35,000 for first-class merchants (i.e., corporations) and self-employed professionals under General Communiqué No. 588 on the Tax Procedure Law — and this amount can apply separately to each individual record/transaction. For example, if 20 cross-verification requests go unanswered in a single year, the total penalty can quickly reach hundreds of thousands of lira.

Recent cases also show that objections to tax/penalty notices issued due to late responses are being rejected — underscoring how seriously this process is now being enforced.

The Connection to KURGAN

This digitalization and increased enforcement of cross-verification did not happen in isolation. Viewed alongside the KURGAN risk analysis system covered in our earlier article, it becomes clear that the tax administration is systematically strengthening its ability to cross-check taxpayer declarations against third-party data. Inconsistencies in cross-verification records can directly affect a taxpayer’s KURGAN risk score.

Recommendations for Taxpayers

• Monitor notifications from the Digital Tax Office closely; don’t miss e-notification alerts.
• When a cross-verification request arrives, contact your CPA immediately rather than waiting until close to the 30-day deadline.
• Grant your CPA sub-user authorization so the process can be professionally managed on your behalf.
• Remember that paper records will no longer be valid after July 1, 2026 — make sure your YMM is also prepared for this transition.

At Mete CPA & Auditing, we support you in responding to cross-verification requests from the Digital Tax Office accurately and on time, helping you avoid special irregularity penalties. Contact us to review your situation.

As of October 1, 2025, Turkey’s Tax Inspection Board, under the Ministry of Treasury and Finance, entered a new era in the fight against fraudulent documents and tax evasion. Introduced under the “Strategy for Combating Fraudulent Documents,” the KURGAN system (Institution-Supervised Analysis System) is a centralized, AI-powered risk analysis system that monitors taxpayers’ transactions in real time. In this article, we summarize what KURGAN is, how it works, and the precautions taxpayers should take.

What Is KURGAN?

KURGAN was introduced under Article 140/A (tax investigation) added to the Tax Procedure Law, and is an AI-powered risk analysis system that screens taxpayers’ historical and current data. The system does not create a new tax obligation by law; rather, it acts as a selection and early-warning mechanism that determines which taxpayers are prioritized under the existing tax audit authority (Article 134 of the Tax Procedure Law).

The End of the “Unknowing Use” Defense

Before October 1, 2025, the defense that a fraudulent document was used unknowingly (“we didn’t know,” “how could we have known”) could be taken into account during tax audits. Under the new regulation, the use of a fraudulent document is presumed to be intentional; company executives who cannot prove the actual content of a transaction may now be directly assessed within the scope of tax evasion.

How Does KURGAN Work?

The system integrates and analyzes data from numerous digital sources in real time:

• E-invoice, e-archive, e-waybill, and e-ledger records
• Banking transactions and payment records
• Social Security (SGK) employee declarations, Trade Registry, and Land Registry (Title Deed) data
• Customs transactions and data obtained from third parties

KURGAN compares each taxpayer’s transactions against their own commercial flow and sector averages to generate an automatic risk score. Importantly, the system flags the transaction as risky, not the taxpayer directly. Transactions with a high risk score are prioritized for review instead of being selected through traditional random audits, and audits are now conducted on the current period rather than years after the fact.

The Request for Information / Invitation to Explain Process

When KURGAN identifies a transaction as risky, the taxpayer receives an Explanation Letter (Request for Information / Invitation to Explain) via e-notification. The taxpayer must prove, with documents and explanation, that the goods or services purchased were genuinely used in production or business activity. If the explanation is found sufficient, the matter is closed; if not, the taxpayer is referred to a formal audit, and where warranted, notified to the Public Prosecutor’s Office through the Tax Inspection Board, MASAK, and tax offices.

Key Risk Areas the System Flags

• Invoices of unusual size inconsistent with the company’s turnover, employee count, or sector profitability
• Expenses or profit/loss declarations inconsistent with sector averages (persistent losses or perpetual input VAT carry-forwards)
• Inconsistencies between delivery notes and PTS (Plate Recognition System) / HGS (Electronic Toll Collection) route records
• Transactions where no clear link can be established between payment documents and the paying/receiving parties
• Documents obtained from short-lived, shell-like companies
• Failure to issue invoices for sales exceeding TRY 9,000; failure to issue daily Z-reports even on days without sales

Precautions Taxpayers Should Take

• Verify the reliability of the companies from which you purchase goods or services.
• Ensure invoice contents are consistent with your turnover, employee count, sector profitability, and warehouse capacity.
• Confirm that goods or services purchased are directly related to your line of business.
• Check that VAT amounts are proportionate to your overall purchase volume and not unusually large.
• Make sure delivery notes exist and are consistent with route records (PTS/HGS).
• Make payments by bank transfer or check; payments made by promissory note carry higher risk in tax audits.
• Ensure receipt-based expenses are proportionate to your company’s size and workforce, and can be clearly explained.
• Consult your CPA before proceeding with any transaction you consider risky.

Why It Matters

With KURGAN, tax auditing has shifted from a random check conducted years later to a data-driven process triggered at the moment a transaction takes place. This makes proactive compliance far more important for taxpayers: assessing the risk of a transaction before it happens is significantly less costly and less stressful than responding to an Explanation Letter afterward. Identifying the risk areas your company may face under KURGAN in advance is critical to being prepared for a potential Invitation to Explain.

Related articles: For specific compliance points under KURGAN, see our guides on YMM cross-verification records and corporate credit card monitoring. Since customs data also feeds into the system, our Export Customs Declaration (GÇB) Closure guide is also relevant, and for resolving existing tax non-compliance, see Asset Peace 2026.

At Mete CPA & Auditing, we support you from assessing your transactions against KURGAN’s risk criteria to managing a potential Explanation Letter process. Contact us to review your company’s compliance position together.

Turkey’s Social Security Institution (SGK) has published Circular No. 2026/15, introducing significant changes to the deferral and installment procedure under Article 48 of Law No. 6183. The circular allows social security premium debts to be restructured at a lower interest rate and over a longer term. In this article, we summarize the scope of the regulation, the collateral-free deferral limits, the application requirements, and the final application deadline.

What Does the Circular Change?

Circular No. 2026/15 introduces three key changes for deferral applications filed between June 16, 2026 and August 31, 2026:

• The maximum deferral term has been extended from 36 to 72 months.
• The collateral-free deferral threshold has been raised from TRY 250,000 to TRY 10,000,000.
• The deferral interest rate has been (temporarily) reduced from 39% to 29%.

Debts Covered by the Circular

The circular covers the following debts relating to periods before June 2026:

• Social security premium debts
• Unemployment insurance premium debts
• Finalized administrative fines
• Late payment penalties and late payment surcharges related to these receivables

Important: Debts relating to July 2026 and later periods are outside the scope of this Circular.

Collateral-Free Deferral

Whether collateral is required depends on the total debt followed by a given SGK unit:

• If the total debt is TRY 10,000,000 or less, no collateral is required.
• If the total debt exceeds TRY 10,000,000, collateral equal to 50% of the excess amount is required.

For example, if a unit’s total tracked debt is TRY 80,000,000, the required collateral is calculated as (80,000,000 – 10,000,000) ÷ 2 = TRY 35,000,000.

The collateral-free calculation is generally made on a provincial basis; however, in Istanbul it is calculated separately for each Social Security Center (SGM). Taxpayers with multiple debts within the same province or SGM are assessed on their combined total debt.

Deferral Term and Graduated Installments

The deferral term is determined based on the debtor’s liquidity ratio. Graduated (step-up) installment plans apply only to deferrals of up to 36 months; for deferrals exceeding 36 months (48, 60, or 72 months), graduated plans are not available and installments are set at equal amounts.

Application Deadline and Required Documents

The final application deadline is August 31, 2026. One of the following documents must be submitted with the application:

• Annex-1 Severe Financial Hardship Report, or
• Annex-1/b Financial Statement Form

If an application is submitted with missing documents, the applicant is asked to complete them; applications not completed in time are rejected. If the same individual is both a self-employed (Bağ-Kur) contributor and an employer, the two types of debt are not evaluated together — each is treated as a separate file. Taxpayers with debts at more than one SGK unit must apply separately to each unit; a single petition cannot cover all units. For applications sent by mail, the date the document is registered with the institution is taken as the reference date.

Deferral Interest Rate and First Installment (Down Payment)

Deferrals finalized by August 31, 2026 are subject to a 29% annual deferral interest rate. The first installment (down payment) must also be paid by this date; otherwise, the reduced 29% rate is lost and the deferral does not take effect.

Effect on Seizure and Enforcement Actions

• Seized assets may serve as collateral under Article 48/5 of Law No. 6183.
• Granting a deferral does not automatically lift existing seizures; as the debtor makes payments, only the seizure amount covering the remaining debt is retained, and any excess seizure may be released.
• Once the first installment is paid, enforcement, seizure, and sale proceedings are suspended, and vehicle capture flags are lifted.
• For assets already in the sale process, the sale is cancelled if the first installment and related costs are paid — though the seizure itself is not lifted.

Missed Installments and Cancellation of the Deferral

Even if 71 out of 72 installments have been paid on time, failure to pay the final installment by its due date will cancel the entire deferral. For this reason, closely tracking the installment schedule is essential.

Other Important Points

• Authority limits valid until August 31, 2026: deferral requests up to TRY 18 million in Istanbul, Ankara, and Izmir, up to TRY 15 million in other metropolitan provinces, and up to TRY 13 million in non-metropolitan provinces are finalized by the relevant SGM/provincial directorates; amounts exceeding these limits are forwarded to central headquarters.
• Debts overdue as of August 31, 2026 may be added to an existing deferral plan if the first two installments have been paid and there are no missed installments; however, these debts cannot benefit from the 29% rate a second time.
• Debts relating to July 2026 and later cannot be added to an existing plan; a separate deferral application may be filed if requested, but the standard (non-reduced) deferral interest rate in force at that time will apply.
• Debts already restructured under law and still in good standing cannot be deferred again under this Circular.
• For transitional periods before June 4, 2026, the standard (previous) interest rates apply.
• Extensions may be requested for existing deferrals: up to 18 additional months for a liquidity ratio between 0.51 and 1.00, and up to 36 additional months for a ratio of 0.50 or below. Within this extension, the portion falling before June 16, 2026 is subject to the previous interest rates, while the portion falling afterward is subject to the 29% deferral interest rate.

Why It Matters

This Circular gives employers and insured individuals with premium debt the opportunity to restructure at a lower interest rate (29%), a higher collateral-free threshold (TRY 10 million), and a longer term (up to 72 months) — while also reducing the risk of seizure and enforcement action. It is important to remember that the deadline for application and first installment payment is August 31, 2026. Since this coincides with the deadline under the General Communiqué on Collection (Series B, No. 20), businesses with both tax and SGK debt should plan both processes together.

If you also have tax debt alongside your SGK premium debt, our Tax Debt Deferral 2026 guide covers restructuring that debt as well.

At Mete CPA & Auditing, we support you throughout the entire process — from assessing your collateral position and determining the most suitable installment plan, to preparing your application documents and tracking your payments. Contact us to review your situation regarding SGK premium debt deferral.

The Turkish Revenue Administration (GİB), under the Ministry of Treasury and Finance, has issued General Communiqué on Collection (Series B, No. 20), published in the Official Gazette dated June 16, 2026 (No. 33282). The Communiqué allows tax debts owed to tax offices to be deferred and paid in installments at a rate lower than the standard deferral interest rate, over a longer term. In this article, we summarize the scope of the regulation, the application requirements, how the number of installments is determined, and the final application deadline based on current legislation.

Purpose of the Communiqué

The purpose of the regulation is to allow taxpayers to defer their debts to tax offices at an interest rate lower than the current standard deferral interest rate. This is intended to help taxpayers experiencing cash flow difficulties pay off their debts over a longer term.

Debts Covered by the Communiqué

The Communiqué covers all public receivables that were past due as of June 5, 2026, remained unpaid as of the date of the Communiqué, and are followed up by tax offices.

Receivables Outside the Scope

The following are not covered by this Communiqué:

• Special Consumption Tax (SCT)
• 2026 provisional income and corporate tax installments
• Penalties, late payment interest, late payment surcharges, and stamp duties related to these taxes

Application Deadline and Channels

The final application deadline is August 31, 2026 (inclusive). Applications may be submitted through the following channels:

• Digital Tax Office (dijital.gib.gov.tr)
• GİB Online Tax Office (www.gib.gov.tr)
• e-Devlet / e-Government portal (www.turkiye.gov.tr)
• In person, by mail, or in writing at the relevant tax office

A separate deferral request must be filed for each debt. Applications may be submitted electronically; for applications sent by mail, the date the tax office receives and registers the application is taken as the reference date.

How Is the Number of Installments Determined?

The Communiqué sets out three separate methods for determining the number of installments:

1. Based on Severe Financial Hardship

The number of installments varies according to the liquidity ratio, calculated based on the taxpayer’s commercial balance sheet or business account records:

• Liquidity ratio of 0.50 or higher: 36 equal installments
• Liquidity ratio below 0.50 but at least 0.30: 48 equal installments
• Liquidity ratio below 0.30: 72 equal installments

Debtors who do not fall under this category may pay their debt in 48 equal installments.

2. Based on the Type of Receivable

Tax loss penalties, late payment interest, late payment surcharges, and related stamp duties arising from Banking and Insurance Transactions Tax (BSMV) and VAT withholding are subject to 12 equal installments.

3. Based on the Legal Status of the Debtor

Debts of legal entities more than half owned by special provincial administrations, municipalities, investment monitoring and coordination directorates, or their affiliated organizations — as well as debts of parties responsible for these entities — are subject to 72 equal installments.

Debtors may request fewer installments than they are entitled to, but not more.

Deferral Interest Rate and Collateral Requirements

The annual deferral interest rate applicable to debts deferred under this Communiqué is 29% (the standard deferral interest rate is currently 39%).

Regarding collateral requirements:

• No collateral is required for debts up to and including TRY 10 million.
• For the portion exceeding TRY 10 million, collateral of at least 50% of the excess amount is required.

Calculating the Debt and Installment Amounts

The total debt amount is determined by adding late payment surcharges accrued up to the application date to the principal receivable. Installment amounts are divided equally; any fractional kuruş/lira amounts are added to the first installment. Deferral interest is shown separately in the payment plan and at the end of each installment period.

Authority to Grant Deferral and the Payment Plan

Deferral requests are finalized by the relevant tax office directorates regardless of the debt amount. The approved payment plan shows the installment amounts, deferral interest amounts, and due dates separately.

Late or Missed Installments and Breach of the Deferral

• Failure to pay an installment (including deferral interest) on time, or paying it in part, constitutes a breach of the deferral.
• Up to 2 installments may be missed within a calendar year.
• Any installment not paid on time or paid in part must be paid, together with the late payment surcharge, within the following installment period.
• If the final installment is not paid on time, the deferral is cancelled.
• If missed installments are not paid with interest within the required period, the deferral becomes invalid and separate collection proceedings are initiated for the debt.

Other Important Points

• Heirs, guarantors, company partners, and legal representatives may benefit from the Communiqué for the amount they are responsible for.
• Debts already restructured under special laws and still in progress cannot be deferred again under this Communiqué.
• For a debt not to appear on a debt status certificate, at least 10% of the deferred debt must have been paid.
• Certain receivables, such as motor vehicle tax and traffic administrative fines, may also be deferred under this scope; a roadworthiness/airworthiness certificate may be issued following deferral, but the full debt must be paid before the vehicle can be sold or transferred.
• Debts that have already benefited once from the 29% deferral interest rate under this Communiqué cannot be granted a second 29% deferral, even for new debts that later become overdue; the standard rate in force at that time will apply instead.

Why It Matters

This Communiqué offers taxpayers a valuable opportunity to ease cash flow pressure, regularize their relationship with the tax office, and reduce the risk of enforcement or seizure proceedings. The reduced deferral interest rate (29%) and installment terms of up to 72 months, depending on the debtor’s legal status, represent a concrete solution worth evaluating for businesses carrying accumulated tax debt. It is important to act on the assumption that the application deadline of August 31, 2026 will not be extended.

If you also have SGK premium debt alongside your tax debt, our SGK Premium Debt Deferral 2026 guide covers deferring that debt over up to 72 months as well.

At Mete CPA & Auditing, we support you throughout the entire process — from assessing your debt situation and determining the most suitable installment option, to filing the application and tracking your payment plan. Contact us to review your situation regarding tax debt deferral.

The regulation widely known as “Asset Peace” (Varlık Barışı) entered into force through Law No. 7582, published in Official Gazette No. 33270 dated 4 June 2026. The General Communiqué (Series No. 1) setting out the implementation procedures was published in Official Gazette No. 33300 dated 4 July 2026. This is Turkey’s eighth Asset Peace regime, introduced through Provisional Article 19 added to Corporate Tax Law No. 5520. In this article, we summarize the scope, tax rates, declaration deadlines, and key points to watch under the current legislation for individuals and legal entities eligible to benefit from this regulation.

What Is Asset Peace?

Asset Peace is a regulation that allows assets held abroad, or assets located in Turkey but kept off the statutory books, to be declared and brought into the formal economy upon payment of a defined tax. Unlike previous editions, the 2026 regulation introduces a tax rate that decreases progressively depending on how long the declared assets are held in specific Turkish financial instruments.

Assets Within Scope

The following asset types may be declared under this regulation:

• Cash
• Gold
• Foreign currency
• Securities
• Other capital market instruments

Important: Real estate (immovable property) falls outside the scope of this regulation. However, foreign real estate may be converted into a qualifying asset type and brought into Turkey before the deadline.

The regulation covers two separate asset groups:

1. Assets held abroad: Cash, gold, foreign currency, securities, and other capital market instruments held abroad by individuals and legal entities.
2. Undisclosed domestic assets: The same asset types located in Turkey but not recorded in the statutory books of income or corporate taxpayers.

Who Can Benefit?

Both individuals and legal entities (companies, foundations, and similar bodies) can benefit from this regulation. Persons with no income or corporate tax liability may also benefit by declaring qualifying domestic assets.

Declaration Deadline

The deadline for declaring assets to banks or brokerage firms is 31 July 2027. The President is authorized to extend this deadline, in periods not exceeding six months each, up to a total of one year.

• Foreign assets may be declared between 4 June 2026 and 31 July 2027.
• Declared foreign assets must be transferred to a Turkish bank or brokerage account, or physically brought into the country, within 2 months of the declaration date.
• Undisclosed domestic assets must be deposited with a bank or brokerage firm on the declaration date itself.

2026 Asset Peace Tax Rates

The general tax rate collected by the bank or brokerage firm on declared assets is 5%. However, this rate decreases progressively if the declared assets are committed to be held in one of the eligible instruments below for a defined period:

• 1-year commitment: 4%
• 2-year commitment: 3%
• 3-year commitment: 2%
• 4-year commitment: 1%
• 5 years or more: 0%

Instruments eligible for the reduced rate: time deposit accounts, Government Domestic Debt Securities, lease certificates (sukuk), and venture capital investment funds. A 5-year commitment to a venture capital investment fund also secures the 0% rate.

Conversion period: To benefit from the reduced rate, the declared amount must actually be converted into the committed instrument within 10 days — from the transfer/deposit date for foreign assets, or from the declaration date for domestic assets. If conversion is not completed within this period, the reduced rate is lost and the shortfall is collected together with late payment interest.

Early declaration advantage: Declarations made by 31 December 2026 are subject to no rate increase whatsoever. Declarations made between 1 January 2027 and 31 July 2027 carry a 0.5-point increase. If the deadline is extended, declarations made after the extension carry a 1-point increase in total.

Tax Protections Provided

For amounts corresponding to properly declared assets:

• No tax audit or tax assessment of any kind will be conducted.
• No tax penalty or administrative fine will be imposed.
• If a tax base difference arising from an unrelated audit is equal to or less than the declared amount, no assessment is made for that difference.

Limits of the Protection

This protection is provided solely under Turkish tax legislation. The following matters remain unaffected and fall outside the scope of this regulation:

• Money laundering and terrorist financing offenses (Law No. 5549),
• Measures required under the Law on the Protection of the Value of Turkish Currency,
• Measures required under the Capital Markets Law, Customs Law, and the Law on the Prevention of Smuggling,
• Tax obligations arising under the domestic law of the foreign country where the asset originated.

Additional Requirements for Companies

Declared assets must be recorded in the statutory books; for taxpayers subject to balance-sheet accounting, these amounts must be tracked in a special fund account that cannot be withdrawn from the business for at least 2 years. In addition, a company’s legal representatives, shareholders, or attorneys acting under a power of attorney or representation agreement executed before 4 June 2026 may also declare foreign assets held on the company’s behalf, provided the required conditions are met.

Relationship with the 20-Year Tax Exemption

Repeated Article 20/D of the Income Tax Law, introduced under the same omnibus law, grants a 20-year income tax exemption on foreign-source income to individuals who become Turkish tax residents on or after 1 January 2026. The two regimes are complementary: a person who repatriates assets under Asset Peace and also qualifies for this exemption can both declare their assets at a low or zero tax rate and avoid Turkish tax on their foreign-source income for the following 20 years.

Important Note: Asset Peace Is Not a Tax Amnesty

Asset Peace does not cancel previously accrued tax debts. It is a separate mechanism that allows an asset held abroad or kept off the books to be brought into legal record upon payment of a defined tax. Banks also remain subject to know-your-customer (KYC) and source-documentation obligations under Law No. 5549, so supporting documents regarding the source of the asset may still be requested.

Assets not declared under Asset Peace are increasingly detectable through the AI-powered KURGAN risk analysis system. If you also have an existing tax debt, you may benefit from installment payment options of up to 72 months.

At Mete CPA & Auditing, we manage your Asset Peace declaration process in full compliance with current legislation — from selecting the right tax rate to tracking declaration and transfer deadlines. Contact us to review your situation.

Dear visitors, in this guide, we will cover the process of limited company formation, 2026 costs, required documents, and all legal stages you need to be aware of.

In a limited company, shareholders and managers have their own legal identities separate from the company itself. Even if the company consists of only one person as the sole shareholder and manager, it remains a distinct legal entity.

This legal distinction means the company can enter into contracts, incur debts, or be sued in its own name. In the event of legal action or debt, managers and shareholders are not personally liable with their private assets (unless there is misconduct or a personal guarantee). Earnings are legally the property of the company, not the individuals.

If you wish to manage your accounts securely and complete the formation process—which typically takes 3 business days to a week—in just 1 business day, you can contact Mete CPA & Auditing at your convenience.

What is a Limited Company?

A limited company (LTD) is a business structure where the company’s finances are separate from your personal finances. Profits belong to the company after taxes are paid and can be distributed among partners based on their share capital. A minimum capital of 50,000 TRY and at least one shareholder are required for formation.

Mandatory Bodies

A limited company must have two mandatory bodies to operate legally: the General Assembly and the Manager(s).

General Assembly

The General Assembly is the primary decision-making body. It handles appointments of managers, amendments to the articles of association, and strategic business decisions. Shareholders meet periodically to review financial and administrative affairs.

Managers

The management of the company is carried out by the manager(s) appointed by the General Assembly. Authorized managers have full authority within legal limits. The General Assembly holds the power to dismiss and replace any manager who fails to perform their duties.

Advantages and Disadvantages

Advantages

• Protection of Personal Assets: Your personal assets are not at risk if the business incurs debts.
• Financial Control: Maintain full control over your business finances without third-party interference.
• Credibility: Limited companies are viewed more favorably by suppliers, banks, and corporate clients.
• Fixed Taxation: Benefit from a fixed corporate tax rate (25%). (Note: since 2025, Turkey applies a domestic minimum corporate tax — the calculated corporate tax cannot be less than 10% of corporate income before deductions and exemptions.)
• Flexibility: Easily increase the number of partners or transfer shares as the business grows.

Disadvantages

• Liquidation Procedures: The closing process is subject to strict legal and tax audits.
• Higher Costs: Accounting, bookkeeping, and incorporation expenses are higher compared to sole proprietorships.

If you are considering a sole proprietorship, please visit our Sole Proprietorship Guide.

Required Documents

• Application petition and Chamber declaration,
• Passport-sized photos and original IDs,
• Workplace rental contract,
• Power of attorney for your CPA.

2026 Formation Costs

For 2026, the estimated cost of establishing a limited company is as follows:

• Formation Power of Attorney: ~2,150 TRY
• Notary Expenses: ~5,750 TRY
• Signature Circular: ~2,250 TRY
• CPA Power of Attorney: ~1,650 TRY
• Stamp Duty (Tax Office): ~1,000 – 2,500 TRY
• Chamber of Commerce Registration: ~12,500 TRY

Mete CPA & Auditing helps you open your limited company in just 1 business day.