Is it Mandatory to Carry Over the Cumulative Income Tax Base in the Change of Employer?

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Is it Mandatory to Carry Over the Cumulative Income Tax Base in the Change of Employer?

Income Tax Communiqué No. 311 addresses this issue as follows:

"In cases where an employee earns wage income from more than one employer, the wages received from each employer shall be taxed separately, and the wage bases shall not be linked. When an employee changes employers, the wages paid by the new employer shall be taxed starting from a zero base, without any connection to the wage base accumulated under the previous employer."

Based on this provision, the general rule is that the cumulative income tax bases between the former and new employer should not be linked. In other words, the cumulative tax base is not required to be transferred to the new employer.

In the meantime, the same Communiqué—amended by Communiqué No. 321—also includes the following provision:

"Employees who change employers during the year may request that their wages be subject to cumulative taxation based on the income tax tariff, by notifying their new employer of the income tax base related to their previous wage income. Wage income received from more than one employer concurrently during the year may also be subject to withholding tax based on the cumulative tax base, provided that the employee makes such a request and all employers involved agree. In cases where an employee's wage income from multiple employers is taxed using the cumulative base and the employee is subsequently required to file an annual tax return, any taxes withheld on the basis of the cumulative base may be credited against the income tax calculated on the declared annual base."

In accordance with the above provision, the following results arise:

• Employees may request that the cumulative income tax base accrued with their previous employers be carried over to their new employers.
• If the new employer agrees, this cumulative tax base may continue.

Therefore, the continuation of the cumulative income tax base depends on two conditions: the employee must make the request, and the new employer must accept it.

In conclusion, there is no legal obligation to carry forward the cumulative income tax base.

Are Individuals Who Carry Over Their Cumulative Income Tax Base Required to File an Annual Income Tax Return?

Even if employees transfer their cumulative income tax base to their new employers, they are still required to file an annual income tax return if the conditions outlined in the Income Tax General Communiqué No. 311 are met.

These conditions are as follows:

• Multiple Employers (Second Bracket Threshold): If the total wage amounts (i.e., cumulative income tax bases) received from more than one employer exceed the second income tax bracket individually—TL 230,000 for 2024 and TRY 330,000 for 2025—an annual income tax return must be filed.
• High Total Income (Fourth Bracket Threshold): If the total wage amounts received from all employers combined exceed the fourth income tax bracket—TL 3,000,000 for 2024 and TRY 4,300,000 for 2025—an annual income tax return must also be filed.

Accordingly, it can be concluded that carrying forward the cumulative income tax base does not exempt employees from the obligation to file an annual income tax return.

To access the Income Tax General Communiqué No. 311, please click the link. (In Turkish)

To access the Income Tax General Communiqué No. 321, please click the link. (In Turkish)