Radical amendments have been made in the Turkish tax system with Income Tax Law (Law no: 7349) published in the Official Gazette numbered 31700 and dated 25.12.2021.

The details of these amendments are as below:

Income Tax Exemption for All Wages

With the new regulation, an income tax exemption would be applied for all wages.

This income tax exemption will be applied as below:

1. Minimum wage income tax exemption is applied on monthly basis.
2. The income tax exemption amount would be the income tax amount calculated over the minimum wage.
3. If the total gross wage of an employee is higher than the monthly gross minimum wage, income tax would be applicable on the total gross wage amount.
4. In that case, the income tax brackets and rates would be determined based on the cumulative income tax base amount, including the exempt part mentioned above.
5. The payable income tax amount would need to be calculated by deducting the income tax amount calculated over the minimum wage in the related month from the total income tax amount calculated over the total gross wage considering the cumulative income tax base.
6. That deduction/exemption amount cannot be higher than the monthly income tax amount calculated over the monthly minimum wage.
7. If employees receives wages from more than one employer, the income tax exemption would only be applicable on the higher wage amount.

• Income Tax Exempted Food Allowance
• Income Tax Exempted Commuting Allowance
• Disability Degree Discount
• Income Tax Brackets of 2022
• Stamp Tax Rate

a. Minimum Wage

In the press release dated December 16, 2021, the Ministry of Labor, along with the Minimum Wage Determination Committee has announced the minimum wage to be effective for the year of 2022, as shown in the table below.

SSI e-notification application deadline has been postponed to 31 Jan 2022.

The applications can only be made via the e-Government (e-Devlet) portal/webpage, and the hardcopy application would not be accepted by SSI.

The employers would need to log in to the E-government portal > SSI e-Notification > new application sections as below:

• e-Government > e-Notification > SSI application screen. e-Government SSI e-notification application screen.
• After log in to the e-Government portal, you would need to click NEW APPLICATION.
• On that screen, you would need to click APPLY and complete the e-Notification application process.

e-Government link is as below: