15 June 2020
Postponement of Social Security Contribution Payment Deadline within the Scope of COVID – 19 Measures
Pursuant to the resolution taken by the Board of Directors of the Social Security Institution (“SSI”) dated 26 March 2020 and numbered 2020/188 (“Resolution”), the payment deadline for social security contributions for employees (under article 4/1a) employed by certain entities and certain self-employed individuals registered under BAĞKUR (under article 4/1b) have been extended. In this post, we will evaluate the scope and the postponement periods under the Resolution.
Obligators Who Can Benefit From the Postponement
Social Security contribution payments for employees (under article 4/1a) of the below-mentioned employers, that are accepted to be in the scope of force majeure by the General Notification on Tax Procedure Law numbered 518 dated 24 March 2020 (“Notification”), have been postponed:
- Taxpayers individuals who generate income through commerce and agriculture and self-employed individuals (such as public relations, farmers, tailors, greengrocers, lawyers, financial advisors, architects, engineers, pharmacists, doctors, dentists, etc.);
- Taxpayers who are operating their activities in sectors where workplaces have been temporarily suspended within the scope of the measures taken by the Ministry of Interior;
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Table 1. Sectors Accepted as Subjected to Force Majeure
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Postponement Period of Social Security Contributions for Employees (under article 4/1a)
In line with the Resolution the payment deadline for social security contributions, borne from the employment of individuals employed by the obligators listed above, for:
- March, of which the payment is normally due at the end of the April, has been postponed to 2 November 2020,
- April, of which the payment is normally due at the end of the May, has been postponed to 30 November 2020,
- May, of which the payment is normally due at the end of the June, has been postponed to 31 December 2020.
Obligators can benefit from SSI incentives in these postponement periods provided that they have satisfied other conditions specified in the relevant legislation and they do not have any premium debts except for the months that are in the scope of the postponement. However, if the postponed premiums are not paid through these periods, the incentives will need to be reimbursed together with the delay fee and penalty.
Postponement Period of Social Security Contributions for Employees Who Have Been Registered under Bağ-Kur (under article 4/1b)
With the exception of real person employers and voluntary insured individuals, self-employed individuals registered with Bağ-Kur (under article 4/1b) who:
- are over the age of 65;
- certify their chronic illness with valid documents;
shall have their social security contributions postponed the end of the 15th day after the finalization of the lockdown which is imposed on them.
Conclusion
Pursuant to the Resolution, certain postponement periods for SSI premium payments are envisaged:
- relating to individuals employed (registered under article 4/1a) by employers considered to be in the scope force majeure; and
- Those who are over the age of 65 or have a chronic illness and have been registered to Bağ-Kur (under article 4/1b).