Tax penalties, voluntary disclosure and ways to reduce them
Missed a return or under-declared? Tax loss penalty, irregularity, voluntary disclosure, penalty reduction and settlement; which is better when?
Most tax errors are timing problems, not intent: a document arrives late, a return is overlooked. The good news is that the Tax Procedure Law gives real advantages to those who correct an error on their own initiative.
Types of penalty
| Penalty | When? | 2026 amount |
|---|---|---|
| Tax loss (TPL 344) | Tax assessed short or late | 1 times the lost tax (3 times for evasion) |
| General irregularity (TPL 352) | Late returns, book certification etc. | TRY 35,000 / 17,000 for capital companies |
| Special irregularity (TPL 353) | Not issuing or obtaining invoices, not meeting e-document obligations | 10% of the document amount, at least TRY 17,000 |
| Late payment surcharge / interest | Late payment | 3.7% a month |
Full table: Administrative fines. Tax penalty calculator
Voluntary disclosure (TPL 371)
If you voluntarily declare tax that was under-declared or not declared before the administration makes a finding or an audit starts:
- No tax loss penalty is imposed.
- The tax is paid with a voluntary disclosure surcharge (at the late payment surcharge rate).
- Conditions: a voluntary disclosure petition (the option in the e-return), filing the return within 15 days, and paying tax and surcharge in the same period.
An irregularity penalty for the late return may still be imposed separately; it can be paid with the TPL 376 reduction.
Example
A limited company forgot a TRY 40,000 sales invoice in its May VAT return and noticed in October.
| Route | Payable |
|---|---|
| Voluntary correction (October) | TRY 8,000 VAT + about 4 months × 3.7% surcharge ≈ TRY 1,184. No tax loss penalty |
| Found in an audit | TRY 8,000 VAT + TRY 8,000 tax loss penalty + late payment interest; plus special irregularity risk |
The difference is close to double even for a small error. Late payment interest calculator
Penalty reduction (TPL 376)
If you do not sue and request the reduction within 30 days of the penalty notice:
- The tax loss penalty is reduced by half the first time and by one-third afterwards; the remaining penalty and tax are paid within 30 days (or within 3 months with a guarantee).
- Irregularity and special irregularity penalties are reduced by half.
Settlement
Settlement can be requested before assessment (before the audit report is written) or after assessment (within 30 days of the notice). The tax and penalty are negotiated; the settled amount becomes final and cannot be challenged in court. In 2026, settlement on irregularity penalties is possible if the penalty exceeds TRY 40,000.
Which route?
- If you found the error yourself: voluntary disclosure immediately. Each month of delay costs 3.7%.
- If a notice has arrived and the error is real: the 376 reduction is usually cheapest.
- If you disagree with the assessment: settlement or litigation; if you sue, you lose the reduction right.
- If you have difficulty paying: deferral and instalments can be requested under Law No. 6183 art. 48.
We support you in tax audits and settlement: Tax advisory · Tax audits and invitations to explain. For SGK fines: SGK fine calculator