Deferral and Installment Payment of Tax Debts under Law No. 6183

Deferral and Installment Payment of Tax Debts under Law No. 6183. In 2025, where economic fluctuations have increased pressure on operating capital, maintaining tax compliance and ensuring the uninterrupted continuity of commercial activities have become critical topics in financial management. The deferral and installment mechanism, which establishes a delicate balance between the state’s goal of securing public receivables and the taxpayer’s payment difficulties, stands out as a strategic financing tool for businesses looking to manage cash flow, with a current interest rate of 39% and unsecured transaction limits raised to 250,000 TL. This article comprehensively examines the legal infrastructure, cost advantages, and application processes of this facility provided under Law No. 6183, in light of current data.

1. Executive Summary and Theoretical Framework

The most concrete manifestation of the modern state’s fiscal sovereignty is the taxes it collects to finance public expenditures. However, the realization of collections within the periods mandated by tax laws may not always coincide with economic realities. Macroeconomic fluctuations, sectoral crises, or business-specific financial bottlenecks can make tax compliance difficult for taxpayers. At this point, Turkish Tax Law aims to establish a delicate balance between ensuring the collection security of public receivables and enabling the “good-intentioned” debtor to sustain commercial life and continue producing economic value. The legal counterpart of this balance is the “Deferral and Installment” institution regulated in Article 48 of the Law on Procedure for Collection of Public Receivables No. 6183 (AATUHK).

This report addresses the process of deferral and installment of tax debts in all its dimensions, in light of the legal parameters, interest rates, and collateral limits updated as of 2025. The main purpose of the report is not only to convey legal procedures but also to deeply analyze the costs, advantages, and risks of deferral as a financial management tool for businesses. Legally, deferral is not a debt amnesty or cancellation; on the contrary, it is a bilateral “financing agreement” where the public administration secures its receivable by spreading it over time in exchange for interest, and the debtor protects themselves from bankruptcy risk by regulating cash flow.

The years 2024 and 2025 have increased the importance of the deferral mechanism due to interest rate hikes and liquidity squeezes brought about by the inflationary environment. The Ministry of Treasury and Finance and the Revenue Administration (GİB) have made significant changes to both interest rates and collateral limits during this period. For example, as of November 13, 2025, the deferral interest was determined as 39% annually, while the unsecured deferral limit was raised from 50,000 TL to 250,000 TL, attempting to alleviate the financial pressure on SMEs. This report will examine the practical reflections and strategic effects of these changes in light of data.

2. Legal Basis and Discretionary Power of the Administration

Unlike private law receivables, the pursuit of public receivables is subject to a special regime based on the state’s “public power” privilege and executed under Law No. 6183 instead of the Enforcement and Bankruptcy Law. Deferral, the most flexible mechanism of this regime, is an “authority” granted to the administration but not a direct “right” for the taxpayer.

2.1. Legal Analysis of Article 48

Article 48 of Law No. 6183 requires that the debtor would fall into a “very difficult situation” if the public receivable were paid on its due date or if foreclosure were applied. The legislator has granted broad discretionary power to the administration (Creditor Collection Office) here. The expression “may be deferred” in the text of the article indicates that the administration reserves the authority to reject the request even if the conditions are met. However, pursuant to the rule of law principle, this discretionary power cannot be used arbitrarily. If the administration issues a rejection decision, this decision must be in the public interest and compliant with service requirements, and it must be reasoned.

The administration’s primary motivation when evaluating deferral requests is “sustainability of collection.” If proceeding with immediate forced execution (foreclosure and sale) against the debtor would terminate the debtor’s commercial activity and destroy future tax revenues, the administration tends to accept the deferral request. This approach aligns with the principle of “not killing the goose that lays the golden eggs.”

2.2. Deferrable and Non-Deferrable Receivables

The vast majority of public receivables falling under the scope of the Law are deferrable. However, certain exceptions have been introduced due to the nature of the tax and collection security reasons. This distinction is vital for taxpayers planning their finances.

2.2.1. Receivables Within Scope

Income and Corporate Tax: These taxes, which are in the direct taxes group and collected on business profits, are the items most frequently subjected to deferral.
Tax Loss and Irregularity Penalties: Penalties attached to the principal tax can also be deferred together with the principal debt or separately.
Late Payment Interest: Late payment interest accrued from the maturity of the debt until the deferral application date is included in the total debt amount to be deferred (as a lump sum with the principal receivable, not capitalized).
Motor Vehicle Tax (MTV): MTV debts can be deferred. As an important detail, as long as payments are made in accordance with the deferral conditions, vehicle inspection is allowed (by issuing a ‘no debt’ letter) even if the debt is not completely extinguished.

2.2.2. Restricted or Special Conditional Receivables

Deferral of some taxes has been made difficult or their durations shortened through administrative savings and circulars:

Value Added Tax (VAT): Since VAT is a tax that the taxpayer collects from the final consumer and transfers to the state in trust, rather than paying from their own earnings, the Ministry of Finance does not look favorably on VAT deferrals to prevent the use of entrusted money in business financing. The deferral period for VAT is generally limited to 6 months.
Provisional Tax: Since it is a prepayment deducted from the annual tax, current period provisional tax debts are generally not deferred. However, if the deduction period has passed and it has turned into annual tax, it may be subject to deferral.
Special Consumption Tax (SCT/ÖTV): Just like VAT, since it is a reflectable and single-stage tax, deferral of SCT debts is largely restricted by administrative circulars. SCT deferral is not performed except in very exceptional cases.
Additional Taxes (Earthquake Taxes, etc.): The maximum deferral period for “Additional Tax” collected under Law No. 7440 and “Additional Motor Vehicle Tax” introduced by Law No. 7456 has been determined as 12 months.

2.3. Authority for Deferral and Delegation

Legally, the authority to defer belongs to the Minister of Treasury and Finance. However, the Ministry has delegated this authority to subordinate units within limits to increase transaction speed.

Tax Office Director: Authorized to defer debts up to a certain amount.
Tax Office President / Defterdar: Steps in for amounts exceeding the Director’s authority.
Revenue Administration: The competent authority for very high amounts and strategic debts. This hierarchy means that as the debt amount increases, the bureaucratic process may lengthen.

3. “Very Difficult Situation” Analysis and Financial Ratios

The most critical and objective condition of the deferral institution is the proof that the debtor is in a “very difficult situation.” The legislator wants to prevent a taxpayer with sufficient payment power (high liquidity) from arbitrarily benefiting from the low-interest installment facility offered by the state. Therefore, the “very difficult situation” status is based not on the taxpayer’s declaration, but on concrete financial statements and ratio analyses.

3.1. Analysis Based on Balance Sheet Basis (Liquidity Ratio)

For taxpayers who keep books on a balance sheet basis (first-class merchants, corporate tax payers), the determination of a difficult situation is made with the Liquidity Ratio formula. This analysis measures the capacity of the business’s current assets to cover its short-term debts.

Formula:

Liquidity Ratio=Short Term Foreign Resources(Debts)Current Assets−Inventories

Deducting the “Inventories” item from Current Assets is a critical detail in this formula. Because converting inventories into cash (selling them) takes time during a crisis and carries the risk of value loss. The administration focuses on the business’s “immediately” cash-convertible assets (Cash, Bank, Receivables).

3.1.1. Grading According to Ratio Results

The calculated ratio is evaluated according to the scale determined by the administration, and the maximum deferral period is determined accordingly. The table below shows the current parameters valid in the 2024-2025 period:

Liquidity Ratio (L) Analysis	Degree of Hardship	Administration’s Approach	Max. Deferral Period
L > 1.00	No Hardship	The business’s cash assets are sufficient to pay its debts.	No Deferral
0.51 ≤ L ≤ 1.00	1st Degree Hardship	The business is experiencing partial liquidity squeeze.	Up to 18 Months
L ≤ 0.50	2nd Degree Hardship	The business is in a serious payment crisis. Assets cannot even cover half of the debts.	Up to 36 Months

Important Note: The first two decimal places are taken into account in the calculation, and no rounding is done (For example, a result of 1.009 is accepted as 1.00). These periods are “maximum” periods; the administration may grant shorter terms using its discretionary power.

3.2. Analysis for Operating Account and Other Taxpayers

For tradesmen, self-employed persons, or real estate capital income owners who are not subject to the balance sheet basis, ratio analysis is not possible. In this case, the “Financial Status Notification Form” comes into play. In this form, the taxpayer declares;

Average monthly income,
Mandatory expenses (rent, personnel, subsistence, etc.),
Real estate and vehicle assets,
Other debts. The tax office compares these declarations with intelligence data at hand (land registry records, bank movements) to appreciate the debtor’s payment power and determine the degree of hardship.

3.3. Validity and Updating of the Report

Submitted financial statements (Balance Sheet) must be dated closest to the application date. Generally, the closing balance sheet of the previous year or the balance sheet of the last provisional tax period of the current year is taken as a basis. If the debtor’s financial situation improves within the deferral period, the administration reserves the authority to cancel the deferral or change the conditions, but in practice, this ex officio review is rarely done.

4. Collateral System and 2025 Amendments

The installment of public receivables is a risk management process for the state. To minimize this risk, Law No. 6183 requires that the deferred debt be secured by collateral. However, a very important limit change was made as of 2025 to reduce bureaucracy in the management of small and medium-sized debts.

4.1. Raising the Lower Limit of Collateral (50,000 TL -> 250,000 TL)

With the regulation effective as of 09.07.2025, the debt limit for which collateral will not be sought in deferral and installment transactions has been increased from 50,000 TL to 250,000 TL. This change is a revolutionary step speeding up the deferral process, especially for SMEs and individual taxpayers.

Implementation Principles:

Debts of 250,000 TL and Below: No collateral is requested from the taxpayer. Only the “Deferral and Installment Request Form” and the hardship declaration are sufficient.
Debts Above 250,000 TL: Collateral is requested not for the entire debt, but only for half (%50) of the portion exceeding 250,000 TL.

Example Calculation: Let’s assume a company has a total debt of 850,000 TL to the tax office and requests deferral.

Exemption Limit: No collateral is sought for the first 250,000 TL.
Exceeding Portion: 850,000−250,000=600,000 TL
Required Collateral Amount: Half of the exceeding portion →600,000/2=300,000 TL

In the old regulation (when the limit was 50,000 TL), much higher collateral would be sought for the same debt. This new regulation has significantly reduced the taxpayer’s cost of finding collateral and mortgage expenses.

4.2. Accepted Types of Collateral (Article 10)

Article 10 of Law No. 6183 lists what can be accepted as collateral in a limited number (numerus clausus). The administration does not accept an asset not on this list (e.g., assets with uncertain liquidity like cryptocurrency, brand value) as collateral.

4.2.1. Cash and Bank Letters of Guarantee

These are the most reliable types of collateral. “Definite and indefinite” letters of guarantee issued by banks are considered cash equivalents. However, since they fill the banks’ credit limits, they are the least preferred method by taxpayers.

4.2.2. Real Estate

This is the most frequently used type of collateral in deferral applications in Turkey. A mortgage or lien is established in favor of the tax office on the real estate of the taxpayer or a third party (provided they give consent).

Valuation: The value of the real estate is determined by SPK licensed valuation experts or tax office sales commissions. Since the municipal property tax value usually remains below the market value, determining the current market value is in the taxpayer’s favor.

4.2.3. Movable Goods and Vehicles

Commercial vehicles, construction equipment, or goods in stock can be offered as collateral. However, the administration prefers real estate due to the risks of storage, depreciation, and theft of movable goods. It is a common practice to take vehicles as collateral by placing a “cannot be sold” annotation on them.

4.2.4. Personal Suretyship (Exceptional Case)

If the debtor cannot provide the collateral in Article 10 (money, real estate, etc.), they can show a “reputable person” as a joint and several guarantor. The tax office investigates the guarantor’s assets and payment power. The guarantor becomes liable for the entire debt just like the principal debtor. This method is generally used as a last resort for debtors who do not have collateral but have commercial reputation.

4.3. Counting Seized Goods as Collateral

If there are previously applied seizures on the taxpayer’s goods, the value of these goods is deducted from the collateral amount. That is, if the administration has already placed a lien on a vehicle worth 500,000 TL and the required collateral is 300,000 TL, the taxpayer does not need to provide additional collateral. The seizure is considered to have fulfilled the collateral function.

5. Financial Cost Management: Deferral Interest and Calculation Models

Deferral is essentially a loan provided by the state to the taxpayer. Like every loan, this has a cost: Deferral Interest. For financial managers of businesses, the deferral decision is based on comparing bank loan costs with deferral interest costs (arbitrage).

5.1. Development of Deferral Interest Rates and 2025 Status

Parallel to the inflationary course in Turkey, deferral interest rates also vary. The level of the interest rate on the application date is fixed for the entire deferral period (fixed interest regime).

Past Rates: Rates such as 15%, 24%, 36% have been applied.
Current Rate (2025): As of 13/11/2025, the annual deferral interest rate has been determined as 39%. While this rate was around 48% in the May 2024 period, the revision to 39% towards the end of the year indicates a relative improvement in financing costs.

5.2. Calculation Methodology: Simple Interest Advantage

The biggest advantage of deferral interest is the use of the Simple Interest method instead of the compound interest (interest on interest) applied by banks. This keeps the cost lower than bank loans in long-term borrowings.

Formula:

Deferral Interest=36000Installment Amount×Annual Interest Rate×Number of Days

Components of the Formula:

Installment Amount: The total of principal and late payment interest to be paid in that installment.
Number of Days: The time elapsed from the deferral application date to the date the installment is paid.
36000: Commercial year (360 days) x 100 constant.

5.3. Cost Simulation and Cash Flow Effect

Deferral interest is not calculated in advance on the entire debt and divided. It is calculated separately for each installment.

1st Installment: Paid 1 month after the application date. Interest is calculated for only 30 days.
36th Installment: Paid 3 years after the application date. Interest is calculated for 1080 days (36 months).

This structure causes payments to be lower at the beginning (low interest) and higher towards the end (high interest due to accumulated days). However, in terms of total cost, 39% simple interest is much more economical than 39% compound interest.

Early Payment Option: If the taxpayer pays the installments before their due date, the “Number of Days” in the formula decreases, so the amount of interest to be paid also drops. This offers a dynamic savings opportunity for firms whose cash flow improves periodically.

5.4. Comparison with Late Payment Interest

When comparing Deferral Interest (39% Annual) with the Late Payment Interest that accrues if deferral is not made (rates that change on a monthly basis for 2025, with an annual compound that can exceed 50%), making a deferral provides a cost advantage in any case. Additionally, late payment interest is uncertain (can change every month), whereas deferral interest is fixed.

6. Application Process and Digital Transactions (Interactive Tax Office)

Within the framework of the Revenue Administration’s digital transformation strategy, deferral applications can now be made electronically without going to the physical tax office.

6.1. Step-by-Step Application (User Experience)

Login: The taxpayer logs in to ivd.gib.gov.tr with their user code or e-Government password.
Menu Selection: “Deferral and Installment Request Form” located under the “Payment and Debt Transactions” menu is selected.
Debt Selection: The system lists deferrable debts. The taxpayer selects those they want to defer (For example, MTV and Income Tax can be selected, VAT can be excluded).
Hardship Declaration: Balance sheet data or income declaration is entered into the system.
Collateral Entry: If the debt is over 250,000 TL, the block/parcel information of the real estate to be shown as collateral or the bank letter of guarantee reference is entered.
Approval and Submission: The form is electronically signed and approved.

6.2. Administrative Evaluation and Deferral Slip

The application falls onto the screen of the affiliated tax office. The deferral service:

Checks the debtor’s “very difficult situation” ratios.
Examines the value and legal status of collaterals.
If conditions are suitable, creates a “Deferral Slip” (Payment Plan).

This plan is notified to the taxpayer. The deferral agreement is legally established upon the taxpayer accepting the plan and paying the first installment (if any).

7. Nullity of Deferral, Violations, and Sanctions

Deferral is an agreement based on delicate balances. Failure of the debtor to comply with their commitments leads to the breakdown of the agreement and severe sanctions.

7.1. Violation of Deferral Conditions (Breach of Deferral)

The following situations are considered violations of deferral and annul the deferral:

Non-payment of Installments: Missing more than two installments in a calendar year (or exceeding the tolerance limit determined by the administration).
Incomplete Payment: Not depositing the installment fully with its interest (even a 1 kurus shortage can technically be considered a violation).
Non-payment of Current Debts: Failure to pay new taxes accrued during the deferral period on time. The administration does not accept “creating new debt while paying off old debt in installments.”

7.2. Consequences of Violation

When the deferral is broken, the process returns to the beginning and more severe conditions are encountered:

Forced Execution: Suspended foreclosure proceedings continue from where they left off. Collaterals are converted into cash.
Interest Revision: The deferral interest advantage disappears. Normal Late Payment Interest is calculated from the maturity of the debt. Since late payment interest is higher than deferral interest, the debt burden increases.
5-Year Ban: Debtors who violate deferral conditions are banned from rights under Article 48/A (compliant taxpayer deferral) for 5 years. This ban applies separately for each tax office where the deferral was made.

7.3. Considering Deferral Valid

Even in case of violation, the administration may not cancel the deferral if it sees good will. Upon the written application of the debtor and payment of the missed installments with late payment interest, the deferral plan can be revised and continued. This is entirely at the administration’s initiative.

8. Special Regime: Deferral for Tax-Compliant Taxpayers (Article 48/A)

Beyond standard deferral (Article 48), Article 48/A has been regulated as a reward mechanism for taxpayers with a clean history. This article bears the title “Deferral of Debts of Tax-Compliant Taxpayers in Difficult Situation.”

8.1. Conditions for Benefiting

Being active for at least 3 years as of the deferral application date (Income/Corporate taxpayer).
Having submitted all tax returns belonging to the last 3 years within the legal period.
Applying for debts whose maturity has not exceeded 1 year.

8.2. Advantages Provided

Article 48/A offers much more generous opportunities compared to standard deferral:

Maturity: While it is maximum 36 months in standard deferral, it can go up to 60 months (5 years) in 48/A.
Interest Rate: Deferral interest can be applied well below the standard rate, even at symbolic rates like 5% under certain conditions.
Collateral: Collateral requirements are more flexible.

However, those who violate 48/A deferral cannot benefit from this privileged right again for 5 years. Therefore, compliant taxpayer deferral is a very valuable right that must be protected.

9. Strategic Conclusion and Recommendations

Deferral of tax debts is a vital liquidity management tool for businesses in the 2025 economic conjuncture.

Use Interest Arbitrage: In an environment where market loan interest rates are in the 50%-60% band, deferral with 39% simple interest is a “cheap” financing source. Instead of borrowing to pay taxes, paying deferral interest may be more advantageous in terms of cost.
Watch the Collateral Limit: The 250,000 TL unsecured limit can offer the opportunity to manage debts in parts. Since debts to different tax offices are evaluated separately, separate exemptions can be utilized for each.
Pay Attention to VAT and Current Period: The difficulty of deferring VAT and the fact that the risk of non-payment of current period debts will break the deferral should not be forgotten. In cash flow planning, priority should always be given to current (new) taxes and VAT payments. Deferral installments should be managed in the second plan, but without missing the deadline.
Communication: Being in constant communication with the tax office can ensure that the deferral is revised without being broken at the moment of payment difficulty. The administration is always more constructive towards a well-intentioned and communicating taxpayer.

In summary, Article 48 of Law No. 6183 is a powerful mechanism that ensures commercial sustainability by spreading obligations to the state over time. Correct analysis, timely application, and adherence to the plan are the keys to the success of this process.

Additional Tables and Reference Data

Table 1: 2025 Deferral Parameters Summary

Parameter	Value / Rule
Annual Deferral Interest	39% (Effective from 13/11/2025)
Interest Method	Simple Interest
Max. Maturity	36 Months (Standard) / 12 Months (Additional Taxes) / 6 Months (VAT)
Collateral Lower Limit	250,000 TL
Collateral Rate	50% of the portion exceeding 250,000 TL
Hardship Criterion	Liquidity Ratio < 1.00

Table 2: Maturity Structure According to Liquidity Ratio

Liquidity Ratio (L)	Status	Maximum Maturity
L>1.00	No Hardship	0 Months (Deferral Rejected)
0.51≤L≤1.00	1st Degree Hardship	18 Months
L≤0.50	2nd Degree Hardship	36 Months

Table 3: Accepted Collateral Assets (Article 10)

Asset Type	Description and Restrictions
Money (TL)	Cash deposit (Blocked account).
Bank Letter of Guarantee	Must be indefinite and definite.
Government Bonds / Bills	Accepted over principal value.
Real Estate	Annotated in land registry. Appraisal value is essential.
Movable Property	Commercial commodities or vehicles (Accepted exceptionally).
Personal Suretyship	Joint and several suretyship of a reputable person (If others are unavailable).

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