02.06.2026 12:00
The Ministry of Finance has initiated a move to reduce the annual deferral interest rate of 39 percent in tax debt restructuring plans extending up to 72 months. This regulation, which will only cover taxpayers facing financial hardship, aims to alleviate the interest burden on tradesmen and businesses.
A significant revision is on the agenda regarding the installment restructuring process for tax and social security premium debts. According to obtained information, as the current 39% deferral interest rate has been challenging for debtors, the Ministry of Finance has initiated a study to lower the rates to more manageable levels.
WHAT ARE THE SCOPE AND CONDITIONS OF THE REGULATION?
According to the news on NTV; not all business owners with public, SSI, or tax debts will directly benefit from the new interest reduction. The main outlines of the regulation are as follows:
- Who will be covered? Only taxpayers determined to be in financial "hardship" will be eligible for the gradual interest reduction.
- What will be the interest limit? The new deferral interest rates to be applied will not fall below the current inflation rate, which is around 32 percent.
COLLATERAL REQUIREMENT UP TO 1 MILLION LIRA REMOVED
One of the major conveniences provided to those who wish to pay their debts during the restructuring process was on the collateral side. With the new decision, the requirement to provide collateral for debts up to 1 million lira has been completely removed. If the debt exceeds this limit, collateral (bank letter or real estate mortgage) will only be requested for half of the exceeding amount. For example; a business with a debt of 2 million lira will be exempt for the first 1 million lira, while it will need to provide collateral of 500 thousand lira, which is half of the remaining 1 million lira portion.
HOW WILL A POSSIBLE INTEREST REDUCTION AFFECT INSTALLMENTS?
If the interest rate were reduced to, for example, 30 percent, the change in the 12-month payment plan for a taxpayer with a debt of 1 million lira would be as follows:
Debt Amount Interest Rate Annual Interest Burden Monthly Installment Amount (12 Months)
- 1 Million TL %39 (Current) 390.000 TL 115.833 TL
- 1 Million TL %30 (Possible) 300.000 TL 108.000 TL
EXPECTATION FOR A SOLUTION ON COMPOUND INTEREST
Although the interest reduction step is welcomed in the market, another important demand from taxpayers concerns accumulated late payment penalties. Debtors are expecting an additional regulation from the ministry to escape the double interest burden resulting from the stacking of late payment interest on the unpaid principal and deferral interest.