Türkiye is set to implement new regulations requiring payments exceeding ₺7,000 ($205) for goods and services to be made through banks or financial institutions, with significant penalties for non-compliance.
The regulation is aimed at increasing tax transparency in the nation, it will be applied to both businesses and consumers.
Mandatory bank or credit card payments over ₺7,000
As part of efforts to combat the informal economy, Türkiye’s Revenue Administration (GIB) has opened a draft amendment to public opinion that would require all payments above ₺7,000 to be made through financial institutions such as banks or the Turkish postal service (PTT).
The measure will be applied to final consumers as well, according to the draft regulation published under the Tax Procedure Law General Communique (Serial No: 459).
For example, if a consumer purchases a refrigerator worth ₺20,000, the payment must be made through a bank or financial intermediary. Failure to comply will result in penalties.
Penalties for non-compliance
Under the new rules, consumers who make cash payments for transactions exceeding ₺7,000 will be fined 10% of the payment amount, with a minimum penalty of ₺5,000. If the payment is ₺60,000, the fine would be ₺6,000.
However, if the consumer self-reports the violation within five business days of the transaction, they will not be penalized.
Expanding tax base
Emre Kartaloglu, president of the Union of Chambers of Certified Public Accountants Türkiye, (TURMOB), welcomed the regulation, noting that it would significantly contribute to the country’s fight against the informal economy. “This will make economic activities easier to track and broaden the tax base,” he said.
The regulation also stipulates that individuals who are not taxpayers are exempt from the new payment requirement in transactions between themselves.
Credit card limits and new payment systems
Alongside these payment regulations, Türkiye’s Social Security Institution (SGK) recently announced it would take part in determining credit card limits based on individuals’ income levels.
Baskent University’s International Finance and Banking Department head professor Senol Babuscu, explained that this would prevent credit overextension in light of rising inflation and high demand for credit cards.
