Limit for unsecured installment plans for tax and public debts increased

A significant change has been made to the installment plans for public debts with a Presidential Decree published in the Official Gazette. In line with the latest decision, citizens and businesses will not be required to provide any collateral when paying their debts to the public sector in installments up to 10 million TL.

The unsecured installment limit, which was previously 250 thousand TL, has been updated to 10 million TL with the regulation that entered into force as of June 13. This means that debtors applying to the tax office will be able to benefit from restructuring without showing collateral for installment plans that do not exceed 10 million TL.

In cases where the debt amount in question exceeds 10 million TL, a condition will be applied to provide collateral at a rate of 50 percent of the excess amount. Thus, a certain security mechanism will be maintained in the restructuring of large-amount debts.

Economic circles state that this change will contribute to easing the financial burden on businesses in particular and positively affecting cash flow. The new regulation is expected to provide convenience for taxpayers who want to restructure their debts.

News Source: 12punto