With the Decision of the President No. 2812 published in the Official Gazette dated 31.07.2020 and numbered 31202, VAT rates were amended in some service sectors.

As per the Provisional Article 6 added to the Decision No. 2007/13033 with the Decision of the President No. 2812, until 31.12.2020;

Due to Covid-19, short-time working allowance, cash wage support and termination ban have been extended by 1 month.

Due to the Covid-19 pandemic, new regulations were introduced by the Government.

In this context, the new regulations brought by the Law numbered 7252 published in the Official Gazette numbered 31199 and 28.07.2020 dated, are summarized as follows:

Short Work Allowance Extension

With the regulation in the provisional article 23 of the Unemployment Insurance Law numbered 4447; The President has been authorized to extend the short-term employment until 31 December 2020 for separate sectors.

In this way, short time working period extension can be made on a sector basis.

According to the 27998389 - 010.06.02. 368870 numbered Circular published by the Ministry of Treasury and Finance with the subject 'Financial and Social Rights', the coefficients used to calculate the wage of a public officers have been revised effective 01.07.2020.

Income Tax Exempted Severance Pay

The following values have been calculated taking these coefficients into account and shall be applied for the period between the dates of 01.07.2020 – 31.12.2020 maximum severance pay to be exempted from income tax is determined as 7.117,17 TL.

Income Tax Exempted Child Support

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2020– 31.12.2020 monthly child support to be exempted from income tax is;

• For children 0-6 years of age – 77,23.- TL,
• For others – 38,62.- TL

To access the full circular in which these announcements were made, please click here. (Please also be advised that the contents of this circular are in Turkish language.)