Legal Interest in Retroactive Incentives

Article 17 of Law No. 5510 grants employers the opportunity to benefit from retroactive incentives or make changes to existing incentives. In this context, it has been determined that the differential premium amounts, resulting from the utilization of retroactive incentives or incentive modifications for the month of March 2018 or earlier, must be settled with legal interest in accordance with the third paragraph of the mentioned article.

SGK has provided specific details on this matter in its General Letter numbered 82296733, dated 13.10.2023:

When calculating the legal interest on the differential premium amounts offset against the employer's debts or paid to the employer due to incentive change requests for March 2018 or earlier:

• The legal interest start date is as follows: If a request is made before 1.4.2018, it is 1.5.2018; if a request is made between 1.4.2018 and 1.6.2018 (inclusive), it starts from the beginning of the month following the request date.
• The legal interest expiration date corresponds to the payment/offset date.

It should be computed based on these guidelines.

However, for manually calculating the legal interest on the differential premium amounts offset against the employer's debts or paid to the employer as a result of processing incentive change requests for March 2018 and earlier, follow these steps in the MOSİP system:

1. Go to the "Other Transactions" > "MOSİP Information Obtaining" > "Interest Calculation Module" options available to all users. Click the "+" button on the screen.
2. In the columns below, input the information in the following order: "Debt Amount," "Interest Type," "Interest Starting Period," and "Interest Ending Period."
3. Calculate the interest amount by clicking the "Calculate" button located at the top right.

After manually calculating the interest, proceed with the following steps in the MOSİP system using the "Expenditure Unit User" role:

1. Access the "Budget Arrangement" section by selecting "Plan Budget and Analysis Module" >> "Payment Transactions" >> "Other Expenditures" >> "Other Expenditure List."
2. Choose "Duty Expenses" and provide an explanation in the "Definition" section.
3. Activate the "Request Type" section using the "Green +" button.
4. Click on the "830.03.04.02.90 Other Legal Expenses" option and add the relevant explanation in the "Expense Description" section.
5. Enter the manually calculated interest amount in the "Approximate Expense" section.
6. Complete the transactions by clicking the "Save" button.

You can reach the related Communique via the link (In Turkish)

Should you have any queries or need further details, please contact your customer representative.