The Ministry of Economy and Finance has issued Prakas 962 MEF on Tax Debt Management dated November 20, 2021, with the aim of defining rules and procedures for tax debt management in order to support the tax collection process more efficiently and effectively and transparency.

Tax debt settlement

1. Taxpayers can pay tax debts in the following ways:

A. To pay the full amount of tax debt at one time

B. To pay tax debt by installment in case the taxpayer is unable to pay the full amount of tax debt at a time and obtain permission from the General Department of Taxation through the payment agreement in installment.

C. To pay agreed tax liability including the certain types of tax, additional tax and late interest, and to retain certain types of tax, additional tax and late interest that is not agreed to protest

D. To pay tax debt based the shares of any natural person who is the shareholder having proportional shares as stated in the company's statute, in case the shareholder intends to pay partial tax debt at the request of the shareholders and get permission from the General Department of Taxation.

Liability for tax liabilities

The governor, editor, owner of the enterprise shall be directly responsible for the tax debt to be paid.

Tax liabilities cannot be transferred to a third party for liability, unless the person is the heir, inherited or acquired the rights under the share transfer procedure or any person who is found by the tax administration to have benefited from the tax evasion and creating that debt. The tax administration has the right to refuse the transfer of tax liability in the event that it is found that the transfer of tax debt or the sale of a business for the purpose of evading tax liability.