HOW MUCH IS THE FOREIGN BORROWING IN 2018?

HOW MUCH IS THE FOREIGN BORROWING IN 2018?

1- Has the amount of foreign borrowing changed after the official announcement of the new minimum wage?
Yes.
With the implementation of new minimum wage in 1st June of 2018, foreign borrowing has increased.As mentioned before, gross salary became 2.029,50 Turkish Lira.

Base Salary became 1.603,12 Turkish Lira.
2- How much is the foreign borrowing in 2018?
 From 1st January 2018 to 31 December 2018, Minimum Foreign Borrowing amount is mentioned below.

2.1- A Month     –                 649, 44 TL
2.2- Annual        –              7.793,28 TL
2.3- For 2 years –             15.586,56 TL
2.4- For 15 years –         116.899,20 TL

Foreign borrowing has to be paid within 3 months after the notification.Unless paid on time, borrowing is cancelled. New applications are accepted.

3-  Foreign Borrowing in 2018 are mentioned on the table below.

Table Footnotes

 Applications will be made to the Social Security Institution Unit, where your   residence is attached to.
 The amount of foreign borrowing will be the same until the end of 2018.

4- What are the conditions of Foreign Borrowing?
Whether he/she lives in a country that made a  Social Security Agreement with our country or not, Turkish citizens working in abroad and those who lost their Turkish citizenship although they were born in Turkey, can make a debt agreement so that their services in abroad can be evaluated as if it took place in Turkey.

The scope of foreign borrowing is period of insurance in abroad, unemployment period between those years or at the end of those years and the period of remaining as house wives.

In order to benefit from Foreign Service debt, it is mandatory to be a Turkish citizen on the application date of borrowing and on the period of borrowing (including those who lost their Turkish citizenship even though they were born in Turkey) and to submit their employment certificate in abroad as well as to have a written request.

In Foreign Service debt, it is mandatory to carry out two conditions of “Being a Turkish citizen”.

One of them is that during the requested borrowing period, one has to be a Turkish citizen and the other one is to be a Turkish citizen on the day when he/she requested borrowing.

Those who have foreign citizenship as well as Turkish citizenship, can also benefit from the mentioned regulation.

5-  What needs to be done first for foreign service debt?
In order to apply for a Foreign Service debt, one has to fill the Foreign Service debt petition.Except for this document, any petition regarding Foreign Service debt is also accepted.However, the information in the petition is not enough to finalize the process of Foreign Service debt, one is expected to fill the Foreign Service debt petition.
Foreign Service Debt Petition can be attained from Social Security Institutions and centers as well as from Social Security Institution’s web page.

6-  What are the other documents requested from you except for Foreign Service Debt petition in application process.
It is compulsory to submit the necessary documents to apply for Foreign Service debt.
In the application of Foreign Service debt, employment certificate needs to be attained in the appendix of Foreign Service Debt Certificate.
Documents regarding remaining as a house wife period and the Foreign Service period necessary to submit are mentioned below:
7- Insurance periods in the countries that Turkey has a Social security agreements
If the working places of the ones, who have social insurance, belong to the official body or regulated by the public body, there is no point in confirming the documents again.

Service certificates regulated by municipalities  of the countries where the workers reside, the documents regulated  by tax  offices regarding service period, the documents given by job creating agencies regarding unemployment period, service certificate given by professional organizations or by the other official institutions, the service certificate given by tax offices to which the self-employed workers linked, the documents attained from Turkish representations such as; consulate , employment and social security  consultancy or attaché’s office need to be supplied.

8- Insurance periods in the countries that Turkey does not have a Social security agreements
The service certificates to be used for foreign borrowing and to be attained from Turkish consulate, employment and social security consultancy or attaché’s office The translations of their passports and work permits
Necessary documents suggesting the duration of service in abroad  need to be supplied to Ship’s crew by Turkish consulates of the countries where they work, by Employment and Social Security consultancy and attaché’s offices.

9- Periods passed by as a House wife
a) Requested documents translated by translation office in Turkey or Turkish representations located in abroad
b) The other necessary document regulated by Employment and Social Security consultancy and attaché’s offices, equivalent to residence document,
c) If above mentioned documents cannot be provided, the photocopy of passport pages suggesting entrance and exit dates to the abroad, photo and identity information or  entrance and exit chart  attained by police department need to be provided.
The requests of the ones who applied for borrowing yet, whose applications seen not enough will not be denied but they are expected to complete their documents.

Financial aid can be provided by the countries with which Turkey has social security agreement, if necessary. Detection of the Foreign Agreement and Retirement Department regarding the documents can be requested.

10- Where to apply in the process of foreign borrowing?
You are supposed to apply to our institution with Foreign Borrowing Request Petition and necessary documents.
1)  In abroad, service period before or after 8 may of 2008 and after that peculiar period, if someone requests foreign borrowing,
a) Borrowing operations of the ones who have Social Security will be conducted by Social Security consultancy or Social Security Centers. Borrowing operations of the ones who do not have Turkish residence will be conducted by the residence centers they are enrolled to
b) In article number 506, the temporary sub article number 20 suggests that whoever belongs to whichever social security status, the social security status will be regulated in accordance to this information.

2)  The ones who do not have social security status in Turkey, will apply to the Social Security Consultancy and Social Security Centers regarding their period of staying at home as house wives and for the period of social security ownership. 

3)  In the article number 5510, the sub article number 4c suggests that excluding Germany, the ones who have partial retirement pay and their borrowing operations will be regulated by Retirement Services and Foreign Agreements and retirement Department.

11- When Foreign Borrowing needs to be paid?
For The ones who applied for foreign borrowing after May 2018.
In order foreign borrowing to be valid, it has to be paid within three months after the effectuation, if they are not paid within this period, new application is necessary.
1) After the effectuation of foreign borrowing in Turkey, it has to be paid within three months.
Exemplum; 38.966,40 Turkish Lira is effectuated, and the borrowing is announced. If it is paid until April 10 2018, borrowing operation will be finished.

2) The ones who will pay their debts from abroad, needs to take the currency amount into account while they are paying it to the central bank of the republic of Turkey.
Payments will be carried out in accordance with the current currency amount of the central bank of the republic of Turkey.

3) The ones’ who will not pay their debts within three months, applications will be invalid.  The evaluation process of their foreign borrowing and service period will be depending on their new applications.

4) If a particular amount of the debt is paid within three months,  the certain rest of three months will be taken  into account.

Exemplum; if  3600 days of borrowing  is effectuated with the March 8 of 2018 dated petition meaning, (67,65 x 3600 x % 32) = 77.932,80 Turkish Lira debt is paid to a certain amount  60.000 Turkish Lira, x (60.000 / 77.932,80) = 2771 days will be taken into account as a debt.

829 days debt which is not paid will be considered again, if new application is done.

5) Regarding the debts paid except for this specific three months duration and not refunded, the owners of foreign borrowing will be informed and their debts will be paid by fiduciary account meaning that the amount they paid to the institution will be valid.

The ones who applied for foreign borrowing Before 8th May of 2018, whose borrowing process continues, and whose whole amount of their debts are not paid, can pay their debts by 3,5 American Dollar currency.

12- How will borrowing period be evaluated?
If the borrowing period is indicated in the petition for foreign borrowing by the one who applies to it, indicated period will be taken into account. If the borrowing period is not indicated in the petition, the duration will be accounted a year as 360 days a month as 30 days.

The ones’ whose services is linked to Social Security Articles, borrowing number of days will be added to number of days of the payment of premium  and services.

If borrowing took place before the exact borrowing date of the insurance, the initiation day will be taken back as much as borrowing number of days.

Regarding the initiation day of payment, same procedure will be executed for the ones who are not linked to the Social Security institution in Turkey. In the case of having more than one application of foreign borrowing, the initiation day of payment can be taken back as much the days when payment is started to the total days.

The ones’ whose foreign borrowing is executed according to the article number 3201; their initiation day of working will not be counted as the first date of recruitment.

However, if there is a special agreement in the country which the one serves, suggesting that the first date of the recruitment can be takes as initiation of the social security in turkey, then their initiation day of working can be counted as the first date of their recruitment.

The list of the countries that have a special agreement regarding the initiation day of working can be counted as the first date of recruitment:

Germany, Albania, Austria, Azerbaijani, Belgium, Bosnia Herzegovina, Czech Republic, France, Georgia, Croatia, Holland, Switzerland, Canada, Quebec, The Republic of Northern Cyprus, Luxemburg, Macedonia, Slovakia, Korea, İtaly.

In the detection of which social security status will be taken into account according to the article number 5510; if there is a social security status, according to the last social insurance status, of the one who has a borrowing application, can be taken as the scope of the service period.

13-What needs to be done for giving up the operation of borrowing?
1) The Ones’ whose application for borrowing is valid but their borrowing are not effectuated or the ones who applied for borrowing and their borrowing effectuated but indicated that they gave up borrowing by writing petition, will not be counted as applied for borrowing.

2) The ones who applied for the canceling of their borrowing by writing petition before they got paid the retirement pensıons wıll be refund as Turkish currency wıthout any kınd of ınterest.  In that case, partial refund will not be done and in other words, a certain amount of borrowing will be cancelled off and the other half will not be valid. The canceling right of the one who applied for more than one borrowing is reserved.

3)  In the case that the ones who did not have the right to get the retirement pension with their services applied with a petition, will get the refund in Turkish currency without interest.

4)  Since the ones who have the retirement pension with the taking account of their borrowing, cannot give up borrowing application and borrowing, their payment will not be given back.

Source: Muhasebenews, SSI,