TAX COLLECTIONS

The basis of tax collections are notice of tax collection, notice of tax underpayment assessment, Notice of an Additional Tax Underpayment Assessment, Notice of Tax Correction, Decision on Objection, or Decision on Appeal that increase the amount of tax payable.

According to Article 19 of General Provisions and Tax Procedures Law, if tax payable under a notice of tax Underpayment Assessment or Notice of an Additional Tax Underpayment Assessment, and additional tax payable under a notice of tax Correction, Decision on Objection, or Decision on Appeal, are not paid or underpaid upon the due date, the amounts of underpaid or unpaid tax are subject to an administrative penalty in the form of interest of 2% (two percent) per month calculated from the due date up to the date of payment or the date of issuance of the notice of Tax Collection. Fraction of a month is deemed as 1 (one) month period.

Can I pay the tax due with installment?

Taxpayer is allowed for installment or postponements to pay tax but it subject to an interest of 2% (two percent) per month.

What is the requirement to request an installment scheme?

According to the Ministerial Decree number 541/KMK.04/2000, the application for postponement and installment should be submitted to the tax office not later than 15 days before the due date for tax payment.

The decisions shall be issued within 10 days after the complete document is received. If this time limit elapses, the application shall be considered granted/approved.