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May 23, 2024

Turkiye increases delay interest and legal interest rates

Both the delay interest rate — calculated in the event of tax default, late payment and voluntary disclosures — and the legal interest rate have been updated with two consecutive Presidential Decrees published in the Official Gazette on 21 May 2024.

Delay interest had been applied at a rate of 3.5% per month since 14 November 2023.

On 21 May 2024, under Presidential Decision No. 8484, the Turkish President increased the delay interest rate to 4.5% per month. This new rate entered into force and was effective as of 21 May 2024.

Under Presidential Decision No. 8485, the legal interest rate, which had been applied at an annual rate of 9%, has been increased to an annual rate of 24%. The legal interest rate, which will be applied at an annual rate of 24% will come into effect as of 1 June 2024.

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Contact Information

For additional information concerning this Alert, please contact:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Ernst & Young LLP (United States), Turkish Tax Desk, New York

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor