What do you need to know about last SSI directive in Turkey ?
In line with the 2022 Working Plan and Program of the Guidance and Inspection Presidency, and following inspections conducted on “Foreign Transactions Services” across various provincial directorates, as well as the receipt of opinion letters from our provincial directorates, concerns have arisen regarding the debiting of insurance periods recorded in service documents issued by foreign representatives of our country in the event of residency in Turkey.
This SSI directive in Turkey applies to the following groups:
Individuals whose applications were processed between the publication date (inclusive) of General Letter dated 28.03.2019 and numbered E.4882446 and the publication date (exclusive) of Circular numbered 2021/2 dated 10.01.2021.
Individuals who applied between 28.03.2019 and 10.01.2021 but had their procedures completed after 10.01.2021.
Individuals who, despite their transactions being carried out before 10.01.2021, were found to have made incorrect transactions according to the applicable legislation after the publication date of Circular No. 2021/2.
In order to address the aforementioned concerns and ensure consistency in procedures, the following guidelines are provided for “debiting insurance periods when individuals reside in Turkey for a part of the periods recorded in service documents issued by our country’s foreign representative offices.”
As part of the effort to unify the legislation governing the practices of Law No. 3201, our General Directorate conducted a review and recognized that insurance periods spent in Turkey were not deducted when borrowing was initiated based on service documents issued by insurance institutions of contracted countries. The practice of not debiting periods spent in Turkey in service documents issued electronically or with wet signatures was terminated with Circular dated 10.01.2021 and numbered 2021/2.
In the fifth paragraph of the article titled “1.2.1. Insurance Periods” in the aforementioned Circular, it explicitly states that “International insurance periods” will not prevent borrowers from being indebted for the periods they were in our country, emphasizing unity in this regard.
In light of this, to ensure uniformity in procedures for those applying to borrow their insurance periods with documents issued both electronically and with wet signatures between 28.03.2019 and 10.01.2021, the following actions will be taken:
Borrowing transactions for individuals who applied for foreign borrowing before 10.01.2021 but have not yet been processed will be finalized in accordance with Circular No. 2021/2.
Regarding those who applied for foreign borrowing and received a loan before 10.01.2021, no actions will be taken regarding the cancellation of their periods of stay in Turkey if they should not have been debited based on the rules in force before 10.01.2021. If they wish to become indebted again for these canceled periods after 10.01.2021, the borrowing transactions will be concluded in accordance with Circular No. 2021/2.
In cases where it is determined after 10.01.2021 that periods spent in Turkey were inadvertently debited, these inadvertently debited periods will not be canceled.
This directive aims to provide clear guidance and consistency in handling insurance period debiting during residency in Turkey.
You can find on this link our last article about SSI Turkey.