Turkey’s Revenue Administration has updated its Guide on the Tax Penalty Reduction Application, outlining the penalties covered, eligibility conditions, reduction rates, application procedures and payment requirements under Article 376 of the Tax Procedure Law No. 213, including a 75% reduction for certain irregularity penalties in 2026.
Turkey’s Revenue Administration has updated and published the Guide on the Tax Penalty Reduction Application, explaining the scope of penalties covered, eligibility requirements, reduction rates, application procedures and payment obligations under Article 376 of the Tax Procedure Law No. 213.
Scope of the tax penalty reduction application
The application enables taxpayers and tax responsible persons to resolve disputes related to tax loss, irregularity, and special irregularity penalties without initiating legal proceedings. Taxpayers generally have 30 days after receiving a tax or penalty notice to either file a lawsuit or apply for the penalty reduction.
The standard reduction rate under the application is 50%, allowing eligible taxpayers to settle the dispute by paying the remaining portion of the penalty.
Increased reduction rate for 2026
For 2026, a higher reduction rate applies to certain lower-value penalties. Irregularity and special irregularity penalties not exceeding TRY 40,000 qualify for a 50% increased reduction rate, resulting in an effective 75% reduction.
The TRY 40,000 limit is calculated on a per-act basis and is subject to annual adjustment. The threshold was previously set at TRY 33,000 for 2025.
Eligibility conditions and payment requirements
To benefit from the reduction, taxpayers must submit an application within 30 days of receiving the tax or penalty notification and must not initiate legal proceedings. If a lawsuit has already been filed, it must be withdrawn within the 30-day period and before the tax court issues a decision.
The assessed tax and reduced penalty must generally be paid within one month from the accrual date. Where a valid guarantee is provided under Law No. 6183, the payment period may be extended by up to three months after the normal due date.
Failure to meet payment conditions results in cancellation of the reduction, restoration of the original penalty amount, and possible liquidation of any collateral provided.
Application process and payment Channels
Taxpayers can apply by submitting a written petition to the relevant tax office or electronically through the Digital Tax Office (dijital.gib.gov.tr) or the GİB Mobil application.
The updated guide also provides information on online, banking, PTT and tax office payment options, along with explanations of eligible penalties, application steps, and the consequences of violating reduction conditions.
This announcement was made on 3 August 2026.
