According to the 27998389-010.06.02-1342135 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 01.07.2022.

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 01.07.2022 - 31.12.2022 maximum severance pay to be exempted from income tax is determined as 15,371.40 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.)

Should you have any queries or need further details, please contact your customer representative.

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 the article 34/14 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 are calculated over wages monthly and are paid jointly by the employee and the employer. The contribution rates are as follows:

a. Minimum Wage

In The press release dated July 01, 2022, the Ministry of Labor along with the Minimum Wage Determination Committee have announced the minimum wage to be effective as of July 01, 2022, as shown in the table below.

The Law on Amending the Code of Judges and Prosecutors (In Turkish) and Some Laws ("Law") was published in the Official Gazette dated June 28, 2022 and numbered 31880.

The Law, which brought regulations in different laws, also made changes in the Notary Law No. 1512 (In Turkish).

• From the date of January 1, 2023, Notaries will be able to make a preliminary real estate contract and real estate sales contract. If one of the parties requests this contract and pays its fees and expenses, it can or may not annotate the land registry through the land registry information system (In Turkish), and notary publics will be responsible for these transactions.