With the Communiqué published by the Central Bank of the Republic of Türkiye in the Official Gazette dated 02.01.2022 and numbered 31707, the default interest rate and the minimum compensatory amount to be applied in late payments is determined.

According to the Communiqué, the annual default interest rate is 17,25 and the minimum compensatory amount is 555.00 TRY.

Social Security Institution has published a notification regarding the SSI premium debt inspection for 5 points premium discount.

Per that notification, the SSI premium debt inspections will start as of January 2022 for the 5% discount on the SSI employer portion.

The 5% SSI premium discount would not be applicable for an employer if any of the workplaces in Türkiye have SSI premium debt, unemployment premium debt, administrative fine, late payment interest, etc.

Certain periods and deadlines stipulated in Turkish Data Protection Law (KVKK) for VERBIS registration with the decision dated 19.07.2018 and numbered 2018/88. Afterward, these periods were extended 4 times, and the deadlines were postponed for various reasons.

With the decision numbered 2018/88, the deadline for VERBIS registration was determined as 30.09.2019 for data controllers with an annual number of employees over 50 and for data controllers residing abroad.

With the decision numbered 2019/265, the deadline for the above-mentioned data controllers was determined as 31.12.2019; with the decision numbered 2019/387 it was extended as 30.06.2020; with the latest decision numbered 2020/482, it was determined 30.09.2020 and lastly, it was determined as 31.12.2021 with the latest decision numbered 2021/238.

The statutory deductions applicable in a standard Turkish payroll are social security premium, income tax, and stamp tax. Also, the salaries generated from liaison offices in Türkiye are exempt from income tax per Article 23/14 of Income Tax Law, and these are only subject to social security.

Also, as of 2022, an income tax exemption amount up to the tax amount calculated over minimum wage would be applicable for all wages.

Social Security Premium

Social Security Premium is calculated over wages monthly and paid jointly by the employee and the employer. The contribution rates are as follows: