Daily Indemnity

The terms Travel Allowance and Daily Indemnity are usually mixed in our legislation. There are significant differences between them, besides, it is known that the social security premiums are deducted from the travel allowance whereas the daily indemnities are not questioned in social security premiums. Please see below the related articles of Mr.Resul Kurt and  Mr.Mehmet Maç.

As it can be referred from being involved in the 24th article about the indiscriminatenesses of the social security commission, mainly the daily indemnities are not an allowance for the employees but an expense for business. However, on the condition that the indemnities are paid as a lump sum under the name of daily indemnity rather than promoted real travel expenses and that they are economized by the employee, they can be considered as benefit and allowance. The amounts that exceed the legal limits are subject to the taxed wage payment.

Labor Law Numbered 4857

CHAPTER 1 "General Provisions"

- Purpose and scope

ARTICLE 1 - The purpose of this Act is to regulate the working conditions and work-related rights and obligations of employers and employees working under an employment contract.

Apart from those cited in Article 4, this Act shall apply to all the establishments and their employers, employer's representatives, and employees, irrespective of the subject matter of their activities.

Establishments, employers, employer's representatives, and employees shall be subject to this Act irrespective of the date of the notification to be made to the regional directorate of labor under Article 3.

ARTICLE 393- Service contract is an agreement where the worker undertakes to work dependent to an employer for a definite or indefinite term and The employer undertakes to pay a wage according to the work done.

Any contracts where the worker undertakes to give a service as a regular basis as a part-time is also a service contract.

Provisions relating to general service contract apply to apprenticeship contracts as well by analogy, special regulatory provisions are reserved.

B. Establishing

Dear Valued Client,

We would like to remind you about a development which will enter into force on October 2018 unless any delay occurs.

Overview

Pursuant to the 18/2/2017 dated General Statement on the Withholding Tax Return and Monthly Premium & Service Declarations which is published in the 29983 numbered Official Gazette, it is announced that WITHHOLDING declaration that should be provided due to tax legislation and MONTHLY PREMIUM & SERVICE DECLARATION which should be provided due to 5510 numbered Social Securities and General Health Insurance Law, are to be combined under a single return called “Withholding Tax and Premium Service Return”. Afterward, this transition process is delayed several times because of technological infrastructure and practical difficulties. Most recently, the implementation is extended to the date of 01.10.2018 with the revision on the “General Statement on the Withholding Tax Return and Monthly Premium & Service Declarations” (Item No:1) published within 30345 numbered and 29.05.2018 dated Official Gazette by the Ministry of Finance.