How to Apply for Tax Settlement (Uzlaşma) in Turkey

Settlement (uzlaşma) is an administrative route that allows a dispute between the tax administration and the taxpayer to be resolved through direct negotiation rather than litigation. Applying at the right stage and in the right form directly affects the outcome.

The Difference Between Pre-Assessment and Post-Assessment Settlement

Under Additional Article 1 et seq. of the Tax Procedure Law (VUK), settlement can be requested at two stages. Pre-assessment settlement is requested before the tax audit is concluded, based on the assessment and penalty proposed by the auditor. Post-assessment settlement is requested after the notice has been served, concerning the finalised assessment and penalty amount.

The Filing Deadline

A request for post-assessment settlement must be filed with the relevant settlement commission within thirty days of the notice being served. Because this period overlaps with the deadline for filing suit, submitting a settlement request automatically suspends the litigation deadline.

What Happens if Settlement Is Reached?

If agreement is reached with the settlement commission, the agreed tax and penalty amount becomes final; no lawsuit or objection can subsequently be brought regarding that amount. The amount set out in the settlement record must be paid within one month of notification.

What Happens if Settlement Is Not Reached?

If settlement fails, or the taxpayer does not attend the settlement meeting, the deadline to file suit begins to run afresh from notification of the settlement-failure record, for whatever time remained of the original period (or fifteen days if less than fifteen days remained). The taxpayer does not lose the right to litigate in this case.

Practical Recommendations

Before attending a settlement meeting, review the audit report underlying the assessment and any comparable precedents; concrete arguments presented at the meeting can influence the commission's decision. Because settlement has a finalising effect, it is advisable to clarify your strategy with a lawyer or accountant before applying.

This article is for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.