Voluntary disclosure (pişmanlık) can protect a taxpayer from the tax loss penalty where an incomplete or erroneous declaration that has caused a loss of tax is reported by the taxpayer on their own initiative and the statutory conditions are met. The notification, the completion of the return and the payment of the overdue tax together with the voluntary disclosure surcharge are separate conditions. The 15-day periods are important; submitting a petition for voluntary disclosure alone is not enough to obtain the result. 1 For more on the subject, see the article voluntary disclosure tax return.
This method comes into question where a return that was not filed on time, or an incomplete or erroneous declaration noticed later, needs to be corrected. However, prior notices, examinations already under way in the relevant tax type, referral for assessment and other statutory obstacles must be reviewed first. The taxpayer's view that "no penalty has arrived yet" does not by itself show that the conditions for voluntary disclosure remain in place. The article on limitation of tax debts examines this topic under a separate heading.
What Are Voluntary Disclosure and Correction (ıslah)?
VUK Article 371 concerns the voluntary notification of conduct that would lead to a tax loss (vergi ziyaı) penalty in taxes based on a declaration. It does not remove the tax or the payment linked to it; where the conditions are met, the specified penalty is not imposed. For this reason, voluntary disclosure cannot be regarded as an amnesty that erases the debt or places all past transactions beyond examination. 1
Which taxes can it be used for?
Income tax, corporate tax and VAT, which are taxes based on a declaration, can be assessed under this provision. The law excludes property tax (emlak vergisi) from this provision. Where a declaration results in no tax, as in a declaration of loss or a breach of the notification obligation alone, the applicability of the voluntary disclosure provisions must be examined separately. 1
A voluntary disclosure to correct a missing value declaration for land registry fees is also a specific area of application. An internal GİB circular states that voluntary disclosure notifications correcting a value are not made on the tax and fee return, and that a procedural penalty therefore cannot be imposed for that reason alone. This specific statement does not mean that every late return is exempt from the penalty for procedural irregularity. 2
What Are the Conditions for Benefiting from Voluntary Disclosure?
The application must be made on the taxpayer's own initiative and must be officially recorded before the obstacles set out in the law arise. The notification must clearly state the tax type, the period, the error and the difference to be calculated. A petition submitted in haste, before the scope of the deficiency has been determined, may create new problems in relation to the return and payment that still have to be completed.
Whether a prior report has been made
Where a report of the kind the law requires has been formally recorded before the notification, that is important for voluntary disclosure. Every rumour or general risk data does not automatically have the same legal consequence. On the other hand, the taxpayer's lack of knowledge of the report does not by itself remove this condition. In the file, the official record and the chronology are decisive. 1
Tax examination and referral to the assessment committee
Under the current wording of Article 371, the examination of the tax type to which the reported matter relates, and the referral of that tax type for assessment, are taken as the basis. Accordingly, the existence of an examination on another tax type does not close off all voluntary disclosure options without any assessment. In addition, the statutory condition for determining smuggling (kaçakçılık) is also taken into account. 1
For example, if voluntary disclosure is considered for a deficiency in a tax type that is under examination at a business, the scope of the notice commencing the examination and any later extension letters must be obtained. Looking only at the title of the examination is not sufficient. A real connection must be established between the relevant tax, the period and the reported matter. For the relevant process, the article on taxpayer rights during a tax examination can also be reviewed.
Service of an invitation to provide an explanation
An invitation under VUK Article 370, or the related preliminary determination letter, may create a bar to voluntary disclosure limited to what has been determined. A general information request letter should not be considered the same as an invitation to provide an explanation. Voluntary disclosure or the explanation route should not be chosen before the legal basis and legal nature of the document received have been determined. 1
How Does the 15-Day Period Apply?
For a return that was never submitted, the completion of an incomplete or incorrect declaration, and the payment of overdue tax with the voluntary disclosure surcharge, there are 15-day conditions linked to the date of notification. These cannot be applied as three consecutive 15-day additional periods. A single calendar should be set up from the date on which the notification is made. 1
If the notification and the return are made on the same day
Where the voluntary disclosure request and the return are made together in the electronic system, the approval record, the assessment slip and the final payment date should be kept. It should not be assumed that a petition submitted on later days restarts the payment period. Under which option the return was accepted should be checked jointly by the taxpayer and the professional adviser. 3 5
Last day and payment record
The time-limit calculation takes account of VUK Article 18 and any applicable special provisions. A last day falling on a public holiday is not the same as the bank's processing hours ending. Sending a payment order to the bank may not by itself show that the money has been applied to the tax debt. The collection record and the bank receipt (dekont) should be obtained together.
If the ability to pay is insufficient, the way in which the payment condition will be met should be assessed before the voluntary disclosure notification is made. A request for deferral (tecil) or instalments alone should not be treated as satisfying the payment condition in Article 371. The possibility of completing the process within the statutory time limit should be made concrete through the assessment (tahakkuk) and the relevant regulations.
How Is the Voluntary Disclosure Surcharge Calculated?
The voluntary disclosure surcharge (pişmanlık zammı) is calculated for each month and part of a month of delay in the overdue tax, by reference to the late-payment surcharge rate under Article 51 of Law No. 6183 (6183 sayılı Kanun). Not imposing the tax loss penalty does not mean that this surcharge is removed. The tax principal and the voluntary disclosure surcharge are separate items in the payment file. 1
In the calculation, the normal due date of the tax, the notification and payment dates, and any changes in the rate must be determined. Applying the current rate to all past months, or calculating part-days by the method of another type of interest, may lead to errors. The official assessment should be checked against the date and amount table in the file.
For example, if three VAT returns relating to different periods are to be corrected, the normal due date of each period is different. Filing on the same day does not mean that the same surcharge amount will result for the three periods. Where there have been earlier payments or offsets, their effect on the relevant tax debt should be considered separately.
Does Voluntary Disclosure Remove All Penalties?
The main result of voluntary disclosure that meets the conditions concerns the tax loss penalty. Late filing, electronic notification or procedural irregularities relating to documents, and special procedural sanctions, may be assessed under their own articles. For each penalty, the conduct, the obligation, the date and the statutory condition must be examined separately. 1
If there is a smuggling allegation, a separate examination is needed
VUK Article 359 contains a separate provision for those who report the matter to the competent authorities in accordance with the conditions of Article 371. Its application depends on the time of the notification and on whether the conditions have actually been fulfilled. Voluntary disclosure is not an unconditional guarantee against penalties that can be obtained later for all conduct already identified. The tax and criminal law dimensions must be assessed separately on the same file. 1
For this reason, an incomplete declaration and the use of fake documents (sahte belge), or other conduct relating to books and documents, should not be lumped together under one heading. The scope of the notification must be accurate; it must not present a past transaction as having occurred when it is based on a document prepared afterwards. The legal assessment must be carried out on existing and verifiable records.
What Happens If the Conditions of Voluntary Disclosure Are Breached?
Failure to file the return within the period, or failure to complete the required payment, affects the benefit of the voluntary disclosure provisions. The tax loss penalty and the ancillary claims are reassessed according to the nature of the event. It cannot be said that the same penalty rate will certainly apply in every breach; the state of the examination and assessment, the nature of the conduct and the relevant statutory provisions are considered together. 1
Where the taxpayer's account shows money but the debt appears unpaid, the payment may have been booked to a different tax type, period or assessment. In such a case, the matter should be raised with the administration using the receipt, the collection number and the account movements. A claim of technical error should not be a reason to leave the statutory time limit unmonitored.
If a penalty notice (ceza ihbarnamesi) is later issued, its own notification and litigation period must be monitored. The existence of a voluntary disclosure application does not mean that an action has been brought automatically against the subsequent penalty process. Penalty reduction and other application options should also be addressed separately, with their scope and consequences.
Can Voluntary Disclosure and Protest Entries Be Used Together?
Voluntary disclosure depends on the voluntary notification of conduct and on the statutory conditions. A protest entry (ihtirazi kayıt) is made with the aim of bringing to court a dispute over the legal basis of a tax. Case law on adding a reservation to a return filed under voluntary disclosure, and on a lawsuit based on it, is restrictive; the advantages of the two routes should not be assumed to combine automatically. 4
The position of a taxpayer who accepts the taxable event and the incomplete declaration is different from that of a taxpayer who objects to the tax on the basis of a legal interpretation. Decisions on correction returns made in response to administrative guidance also cannot be applied unconditionally to voluntary disclosure files. The legal choice must be made before approval is given in the electronic system.
Pre-Application File Check
- Determine which tax type and which period the deficiency belongs to.
- Review the records of prior reports, examinations, referrals for assessment and invitations.
- Calculate the tax difference and the voluntary disclosure surcharge period by period.
- Follow the notification, return and payment conditions on the same timeline.
- Keep the dispatch, assessment and collection documents together.
The financial calculation of the file and its legal nature must be considered together. A choice made by looking only at the lowest payment amount may produce different results for the right to sue or for penalties. The process started to remedy the deficiency must be followed until the scope of the return and the payment conditions are complete.
Conclusion
The result of voluntary disclosure depends on the notification being made voluntarily and on time, followed by the fulfilment of all statutory conditions. The 15-day periods, the state of the examination by tax type, the scope of any invitation to provide an explanation and the payment record must each be checked separately. The advantage of avoiding the tax loss penalty must be weighed together with the tax principal, the surcharge, other penalties and the right to sue.
Frequently Asked Questions
Does a voluntary disclosure petition erase the tax debt?
No. As explained under "What Are Voluntary Disclosure and Correction (ıslah)?", the tax principal and the related payment obligation continue. Return to the related explanation
Are there separate 15-day periods for the return and for payment?
No. Consecutive additional periods do not apply. The calendar based on the notification date, described under "How Does the 15-Day Period Apply?", is used. Return to the related explanation
If there is an examination on another tax type, are all routes closed?
Not automatically. The tax type and its connection to the event, as set out under "Tax examination and referral to the assessment committee", must be examined. Return to the related explanation
Does voluntary disclosure remove all tax penalties?
No. The separate sanctions and conditions explained under "Does Voluntary Disclosure Remove All Penalties?" must be assessed. Return to the related explanation
Sources and legal bases
- Tax Procedure Law No. 213 (213 sayılı Vergi Usul Kanunu), in particular Articles 18, 344, 359, 370, 371 and 378. Official source
- GİB, internal circular on voluntary disclosure notifications and procedural penalties for land registry fees (tapu harcında pişmanlık bildirimi ve usulsüzlük cezasına ilişkin iç genelge). Official source
- GİB e-Beyan, Filing a Return with the Voluntary Disclosure Option (Pişmanlık Talepli Seçeneği ile Beyanname Verme). Official source
- Constitutional Court (AYM), press release on an individual application concerning a return filed with voluntary disclosure and a protest entry (pişmanlık ve ihtirazi kayıtla verilen beyanname hakkında bireysel başvuru basın duyurusu). Official source
- GİB, Voluntary Disclosure Guide, August 2024, Publication No. 523 (Pişmanlıkla Beyan Rehberi, Ağustos 2024, Yayın No. 523). Current legislation, rather than historical rates, should be taken into account. Official source