Under Presidential Decree No. 9368, published in the Official Gazette No. 32766 on December 28, 2024, the periods that employees working in technology development zones and R&D or design centers can spend outside these zones and centers (remote working) in 2025, to qualify for income tax withholding incentives, have been determined.

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 34/14 of Income Tax Law, and these are only subject to social security.

Also, the income tax exemption as much as the income tax deduction amount calculated over the minimum wage for all wages introduced in 2024 will continue in 2025 as well.

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:

The provisions of the "Mutual Agreement Procedure" in Double Taxation Agreements allow taxpayers to appeal to competent authorities if they believe they have been taxed contrary to the terms of the existing agreement or if there are strong indications that they will be taxed in such a manner.

In this context, the "Mutual Agreement Procedure for the Elimination of Double Taxation Agreements" has been updated and is now available in English.

With the General Communiqué numbered 575 published in the Official Gazette dated November 30, 2024, the amount limit determined within the scope of the obligation to certify collections and payments with documents issued by banks, electronic payment institutions or post office was increased from 7,000 TRY to 30,000 TRY. It is obligatory for those who are within the scope of the obligation to certify, to make all kinds of collections and payments exceeding 30,000 TRY through intermediary financial institutions and to certify these collections and payments with the documents issued by these institutions.