The Turkish Revenue Administration has published a new Communiqué No. 319 regarding the wage/employment income.

The details of these amendments are as below:

The Scope and The Implementation of The Exemption

Per Article 4 of the Communiqué:

The income tax base calculated by deducting the social security premiums from the gross wage would be exempted from income tax.

The total amount and income tax brackets would be considered for the taxation of the wage amounts above the minimum wage.

The exemption amount cannot be higher than the income tax of the minimum wage on the related month.

If the employee receives a wage from more than one employer, the exemption would be applicable for the highest wage.

If there are any additional benefits other than the wage amount, the exemption would be applied to the total earning once, and the cumulative income tax base would be considered.

This exemption would also be applicable for the wage earnings of the board members, experts, official mediators, sports referees.

The minimum subsistence allowance is abolished and would not be applicable as of 01.01.2022.

The Turkish Revenue Administration would be responsible for determining and processing the disability income tax discounts. If the employee receives wage amount of minimum wage and thus would not pay any tax, the exemption would not be applicable for that employee. If the employee receives more than the minimum wage amount, the exemption would be applicable.

In Labor Law, there are some important differences between compulsory and arbitrary mediation.

Within this framework, you can find the details about compulsory and arbitrary mediation in labor law disputes as below:

Compulsory and Arbitrary Mediation in Labor Law

Mediation, one of the alternative dispute resolutions methods, is regulated by Mediation in Legal Disputes Law No. 6325 (In Turkish.), and a legal basis has been prepared for legal disputes. Mediation is the method used by the parties for a private law dispute before or after filing a lawsuit under the arbitration of an impartial third party (mediator) who has received specialized training, chosen by their own free will.

There are two types of meditation in Turkish Law; "compulsory mediation" and "arbitrary mediation."

According to 27998389 - 010.06.02 - 903791 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 01.01.2022.

The previous Circular published on 06.01.2022 has been abolished.

Income Tax Exempted Severance Pay

The following value has been calculated taking these coefficients into account and shall be applied for the period between the dates of 01.01.2022 – 30.06.2022 maximum severance pay to be exempted from income tax is determined  10,848.59 TRY.

It is stated that as a result of the investigation of the Authority within the scope of the notices submitted to the Authority, the software provided by the software firms to the automobile renting companies and the negative experiences of the rent holders during their automobile rental period and the comments of the automobile rental companies for the next renting processes can be viewed by another automobile renting companies in the rental situation, and the lessor is not aware of the processing of this knowledge.

It is stated that once an evaluation is made case-by-case basis between the fundamental rights and freedoms of the person and the legitimate interests of the data controller, the blacklist application is applicable within the data controller company, but if the processed personal data is shared with the other firms, the fundamental rights and freedoms of the data subject will be violated, and commitment to the purpose, limitation and it has been evaluated that is incompatible with the principle of proportionality. In the Decision, it is also stated that the processing of personal data within the scope of the blacklist will prevent the data subject from exercising their rights since they cannot know other automobile renting companies that their personal data were shared with it.