What is the Rate of Repentance Increase?
The remorse increase is calculated at the rate of the delay increase to be applied at the rate specified in Article 51 of the Law No. 6183 for each month and fraction thereof for which the payment is delayed.
With the Presidential Decree dated 20/5/2024 and numbered 8484, since the rate of late payment increase has been determined as 4.5% to be applied separately for each month, the remorse increase will be applied as 4.5% as of 21/5/2024.
How to Calculate the Repentance Increase?
For the tax accrued on the declaration submitted with the request for regret and the payment period has passed, the regret increase is calculated for each month and fraction between the normal due date of this tax and the last day of the 15-day payment period given upon the acceptance of the regret request.
In the event that the taxpayer makes a payment before the due date in the accrual receipt and the early payment affects the calculated and accrued regret increase, the over-calculated regret increase is corrected according to the correction provisions.
Example: In the event that the Withholding and Premium Service Declaration for the period of July/2024 is not submitted on 26/8/2024 and the declaration is submitted electronically after the legal period on 15/10/2024 according to the provisions of regret and amendment, this declaration is accepted by the system and an accrual receipt is issued.
In the accrual receipt issued; the tax principal, the regret increase calculated for the overdue taxes and the last day of the 15-day payment period starting from the day the declaration is sent (except this date), 30/10/2024 is included as the due date.
It is possible for the taxpayer to make a payment on a date before this due date on the accrual receipt, for example on 24/10/2024. In this case, the over-accrued regret increase is corrected according to the correction provisions.
Are Penalties Penalized for Declarations Submitted According to Regret and Reclamation Provisions?
Taxpayers who benefit from the remorse provisions are not subject to tax loss penalties. The provisions of the article on smuggling are also not applied to them. However, submitting a declaration with regret does not prevent the imposition of irregularity and special irregularity penalties.
Irregularity and special irregularity penalties are imposed according to whether or not it is mandatory to submit the regretful declaration electronically.
In the event that an administrative fine is required to be imposed in accordance with Law No. 5510 in relation to the Withholding and Premium Service Declaration sent in accordance with the provisions of remorse, irregularity and special irregularity penalties are not imposed for the same acts.
No irregularity and special irregularity penalty shall be imposed on the grounds that the correction declaration in the nature of increasing the tax base and / or tax given with a request for regret after a declaration submitted within the legal period is not submitted on time.
Source: Revenue Administration of Republic of Türkiye
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
