Informative Note on Omnibus Law numbered 6736
Regulations under Omnibus Law numbered 6736 over Social Security Institution Receivables
Law on Restructuring of Some Receivables, numbered 6736 (the “Law”), published in the Official Gazette on the date of 19 August 2016, has brought new regulations regarding some governmental receivables including receivables of Social Security Institution (“SSI”).
By the respective Law, SSI receivables of 2016 June and prior periods and their delay penalty are restructured. In replacement of the delay penalties, inflation differences which are determined by Turkish Statistical Institute (“TSI”) will be collected by adding to the principal debt. As a result of the restructuring, employers’ enforcement and seizure processes will come to an end and furtherly the employers will start to benefit from the incentives.
Which Receivables Are in the Scope of Restructuring?
In case the Security Premium, pension deduction, unemployment insurance Premium, social security support Premium, voluntary insurance Premium which possible to be paid and collective insurance premium, stamp tax which is collected by SSI, special transaction tax, contribution to education tax, principal premiums of general health insurance (“GHI”) and the amount that is calculated by taking Domestic Producer Price Index (“DPPI”) monthly rate of change as basis are paid within the determined time period, collecting of delay penalty and delay interest which are applied to these receivables will be waived.
After the commencement of monthly old age pension, retirement pension or disability pension, persons who are obliged to pay social security contribution premium due to their self-employment status will not be imposed delay penalty and delay interest if principal contribution premiums of 2016 February and prior periods are paid along with amounts that are calculated based of DPPI monthly rate of change.
When Will the Applications for Restructuring Commence?
Employers who seeks to benefit from the restructuring as regulated by the Law, may apply until the date of 31 October 2016. First payment to be made as advance or installments may be made by the employers until 2 January 2017.
50% of Principal Administrative Fine Debts Will Be Cancelled
By the Law, 50% of principal administrative fine debts which arisen from SSI premiums will be cancelled.
Installment for Debts
In case the whole SSI debt is paid in advance, half of the inflation difference that is imposed to the capital will not be collected. As well as payment in advance, payment can be made in 2 months’ periods. Hence 6 instalments (12 months), 9 instalments (18 months), 12 instalments (24 months), 18 instalments can be paid in 36 months deferred period.
GHI Debts
The restructuring also covers GHI debts, GHI Premium debts of 2016 June and prior periods can be paid in advance or 12 months’ equal instalments as interest-free to the principal debt. Persons who did not take income test can apply to income test until the date of 2 January 2017. General health insurees who cannot benefit from health services due to their debts, may benefit from the health services in case they pay the first instalment.
What Will the Employers Benefit from as A Result of the Restructuring?
Employer who benefits from restructuring and obtain no-indebtedness document will no longer be subject to execution proceedings and seizure process arisen from debts to SSI and they will be able to benefit from incentives. Furthermore, remaining for of the debts which were postponed, installed and restructured will be restructured upon request of the employer.
Circumstances For Restructuring
Employers who owe debt to SSI shall their right to restructure in case they do not pay the first two restructuring installments in time; do not pay or pay the full amount of the current month Premium debts for more than two times during installment period within one calendar year.