The North Cyprus tax amnesty deadline is extended to close of business on 15 December 2026; rates and conditions for 2024 and earlier debts are unchanged (Decree-Law 116/2026, Articles 5(1) and 6).
What Changed Compared with Decree-Law 81/2026?
Decree-Law 116/2026 (Official Gazette No. 193, 2 October 2026) repeals Decree-Law 81/2026 (Official Gazette No. 138, 23 July 2026), the TRNC tax amnesty for 2024 and earlier taxes and local authority receivables, without prejudice to acts done under it (Article 11). It took effect on 2 October 2026 (Article 13). The only change of substance is the deadline: taxpayers must apply on the returns and/or forms issued by the Revenue and Tax Office (Gelir ve Vergi Dairesi) by close of business (mesai bitimi) on 15 December 2026 instead of 12 October 2026 (Article 5(1)). Scope, the split between 2023 and earlier and 2024, the 90% and 50% upfront rates, the 80% and 40% instalment rates, the 20% payment on the day and the six equal instalments are all kept (Articles 4, 5(2) and 6).
| PROVISION | 81/2026 (OLD) | 116/2026 (NEW) | SOURCE |
|---|---|---|---|
| Application deadline | From entry into force until close of business on 12 October 2026 | From entry into force until close of business on 15 December 2026 | 81/2026, Art. 5(1); 116/2026, Art. 5(1) |
Unchanged Rates and Conditions
| PAYMENT METHOD AND PERIOD | CONDITION | AMOUNT WAIVED | SOURCE |
|---|---|---|---|
| Upfront (peşin) — principal of tax, duty, fee, special irregularity penalty (özel usulsüzlük cezası) or public receivable for 2023 and earlier tax periods | Application within the Article 5 period and payment of the whole principal upfront before close of business on the day of application | 90% of penalties, all late payment surcharges linked to penalties, and an amount equal to 90% of late payment surcharges (gecikme zammı) and late payment interest (gecikme faizi) | Art. 6(1)(A) |
| Upfront — principal of tax, duty, fee, special irregularity penalty for the 2024 tax period, or of a public receivable whose due date fell between 1 January 2024 and 31 December 2024 (both dates included) | Application within the Article 5 period and payment of the whole principal upfront before close of business on the day of application | 50% of penalties, all late payment surcharges linked to penalties, and an amount equal to 50% of late payment surcharges and late payment interest | Art. 6(1)(B) |
| Instalments — principal of tax, duty, fee, special irregularity penalty or public receivable for 2023 and earlier tax periods | Application within the Article 5 period; payment on the day of application of 20% of the total debt calculated after application; the whole principal paid in six (6) equal monthly instalments starting from the beginning of the month following the application period | 80% of penalties, all late payment surcharges linked to penalties, and an amount equal to 80% of late payment surcharges and late payment interest | Art. 6(2)(A) |
| Instalments — principal of tax, duty, fee, special irregularity penalty for the 2024 tax period, or of a public receivable whose due date fell between 1 January 2024 and 31 December 2024 (both dates included) | Application within the Article 5 period; payment on the day of application of 20% of the total debt calculated after application; the whole principal paid in six (6) equal monthly instalments starting from the beginning of the month following the application period | 40% of penalties, all late payment surcharges linked to penalties, and an amount equal to 40% of late payment surcharges and late payment interest | Art. 6(2)(B) |
Also unchanged:
- Scope: 2024 and earlier taxes, tax penalties and special irregularity penalties under the Income Tax Law, the Corporate Tax Law, the Banking and Insurance Transactions Tax Law, the Value Added Tax Law, the Immovable Property Tax Law, the Law on the Taxation of Undeclared Income of Deceased Persons and of Property Passing on Death, and the Tax Procedure Law, plus principal receivables of local authorities (yerel yönetimler; excluding the Cyprus Turkish Association of Municipalities) for periods up to and including 31 December 2024, with related late payment surcharges and late payment interest (Decree-Law 116/2026, Article 4).
- Definitions (Article 2) and purpose (Article 3): "Daire" means the Revenue and Tax Office; late payment interest has the meaning given in Article 55A(3)(c) of the Tax Procedure Law, and late payment surcharge the meaning given under the Law on the Collection Procedure of Public Receivables; a principal receivable (Asli Alacak) means public receivables of local authorities (excluding the Association of Municipalities) "such as" taxes, duties, fees, principal receivables from services provided, penalties, tax penalties and fines.
- Local authorities use the decree for their receivables by a resolution of their own councils (Article 5(1)).
- Instalment applicants must pay 20% of the total debt before close of business on the day of application (Article 5(2)).
- Taxes, tax penalties and related late payment surcharges and interest paid under the decree cannot be deducted as an expense in any tax period or set off against taxes payable, and no refund may be claimed; the no set-off and no refund rule also applies to all other public receivables paid under the decree (Article 7).
- Where taxes and/or public receivables are found unpaid, or other obligations not properly met, the Revenue and Tax Office or the collecting authority carries out the necessary assessment, accrual and other steps under the decree, the Law on the Collection Procedure of Public Receivables and other tax or relevant legislation (Article 8).
- Payment within the set periods is a condition; amounts not paid in time are collected under the Law on the Collection Procedure of Public Receivables (Article 9(1)).
- If the calculated and/or instalment amounts are not paid in full during the decree's period of validity, the debt reverts to its original amount and payments are set off proportionally against principal, late payment surcharges and late payment interest (Article 9(2)).
- Loss of the benefit for those who (A) do not pay all accrued taxes, penalties, special irregularity penalties and other public receivables within the set payment periods, (B) do not act within the application, return or notification periods, or (C) accept the Office's actions and later refuse to apply them and create a dispute; amounts collected from them are not refunded or set off against other taxes or years, and are set off against the total owed before the decree was applied (Article 9(3)).
- Other tax legislation in force applies to matters the decree does not regulate (Article 10).
What This Means in Practice
- Taxpayers with 2023 and earlier debts: apply by close of business on Tuesday 15 December 2026; the whole principal (upfront) or 20% of the total debt (instalments) is paid before close of business on the day of application, for a 90% or 80% waiver (Articles 5, 6(1)(A) and 6(2)(A)).
- Taxpayers with 2024 debts: same deadline and payment conditions, at 50% upfront and 40% in instalments, including public receivables due between 1 January and 31 December 2024, both dates included (Articles 6(1)(B) and 6(2)(B)).
- Decree-Law 116/2026 entered into force before the 12 October 2026 deadline expired, so the application window runs without a gap from 2 October 2026 (Articles 5(1) and 13).
Please don't hesitate to contact N.Akman & Co. with any questions.
