Recent Development
The Presidential Decree No. 1266 (“Decree“), published in the Official Gazette dated June 29, 2019 and No. 30816, redetermined the delay interest rate within the scope of Article 51 of the Law No. 6183 on the Collection Procedure of Public Receivables.
What Does the Decree Say?
According to the related article, a monthly delay interest applies on the unpaid portion of a public receivable starting from the end of the due date. The President is authorized to increase and decrease this rate within certain limitations.
Based on this authority, the President increased the monthly delay interest rate from 2% to 2.5%, effective as of 1 July 2019.
After this redetermination, the monthly delay interest rate which applies to tax receivables under Article 112 of the Tax Procedural Code will also be applied as 2.5%.
