In accordance with the letter of the Ministry of Treasury and Finance, General Directorate of Public Financial Management and Transformation dated 04.07.2022 and numbered 27998389-010.06.02-1342135, the expense limits exempt from income tax for the period of 1 July 2022 - 31 December 2022 has been announced.

The Tax-Exempt Amounts of Domestic Travel Expenses

The tax-exempt amounts of domestic travel allowances for the period of 01 July 2022 and 31 December 2022 are as below.

Some regulations have been made on some tax laws with the Law No. 7417 (In Turkish) and Law no: 375 published in the Official Gazette dated 05.07.2022 and numbered 31887.

The summary of the regulations is as below:

1. The regulations on AATUHK No. 6183 (Law Regarding the Collection of Public Receivables)

With the amendment made in Law No. 6183 (In Turkish), the indefinite letters of guarantee, which are accepted as collateral and given by banks, would also need to be unconditional.

In addition to bank letters of guarantee, indefinite and unconditional bail bonds given by insurance companies will also be accepted as letters of guarantee.

The regulation entered into force on 05.07.2022.

• Income Tax Exempted Food Allowance
• Income Tax Exempted Commuting Allowance

Income Tax Exempted Food Allowance

Meal allowance tax exemption amount that is applied as of 1st of July 2022 was announced on 08.07.2022 dated and 31890 numbered bis Official Gazette. Based on that the meal allowance which is provided by the employer outside of the workplace and workplace outbuildings as defined in the (8)th clause of Article 23 of Income Tax Law (In Turkish), exemption amount is defined as 51.00 TRY to be applied as of July 1st 2022.

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.