Subsistence (Daily Subsistence)

The concepts of travel allowance and subsistence are constantly being confused in our legislation. Although there are very important differences, it is known that SSI premiums are deducted from travel allowance and subsistence is not included in SSI premiums. Below are Mr. Resul Kurt and Mr. Mehmet Maç’s articles on the subject.

As subsistence is included in the Income Tax Law Article 24 which mentions the equivalents of expenses, they are fundamentally a business-related expense and not an allowance provided to an employee. However, they happen to be a benefit and allowance in cases when they are paid in lump sum under the name of daily subsistence and not as an exact and certified travel expense and when partially saved by the employees. The amount beyond the legal degree qualifies as a payment subject to taxation.

Dear Valued Client,

We would like to remind you about a development which will enter into force on October 2018 unless any delay occurs.

Overview

Pursuant to the 18/2/2017 dated General Statement on the Withholding Tax Return and Monthly Premium & Service Declarations which is published in the 29983 numbered Official Gazette, it is announced that WITHHOLDING declaration that should be provided due to tax legislation and MONTHLY PREMIUM & SERVICE DECLARATION which should be provided due to 5510 numbered Social Securities and General Health Insurance Law, are to be combined under a single return called “Withholding Tax and Premium Service Return”. Afterward, this transition process is delayed several times because of technological infrastructure and practical difficulties. Most recently, the implementation is extended to the date of 01.10.2018 with the revision on the “General Statement on the Withholding Tax Return and Monthly Premium & Service Declarations” (Item No:1) published within 30345 numbered and 29.05.2018 dated Official Gazette by the Ministry of Finance.

As per to the Article 4 of The General Communiqué Sequence Number: 483 of Tax Procedure Law, published in the Official Gazette dated 30.09.2017, the fiscal information regarding day end Z-reports obtained on daily basis from the old and new generation cash registers (except for users of cash registers with mobile EFT-POS features) should be submitted to the Turkish Revenue Administration as from 01.10.2018.

On the Official Gazette numbered 30534 dated 13.9.2018, it has been announced with the Presidential Decree numbered 85 to make amendments on the recently announced Decree Law numbered 32 “The Protection of the Turkish Currency”.

According to the newly announced Decree, the below shall be applicable starting as of 13/9/2018:

• It is prohibited to have foreign currency-based contracts or contracts with foreign currency payment duties for the parties which are located within the borders of Türkiye in relation to all types of property and real estate purchase, sale and lease agreements, vehicle purchase / sale and lease agreements, service, employment and similar agreements. The clause is applicable to all local parties in Türkiye unless the party is announced to have certain exception by the relevant authority.
• As of the date this Law is in force (Sept, 13), within 30 days all the rates, values, prices which are to be agreed on foreign currency, shall be adjusted with Turkish currency (TRY) fees. The clause is applicable to all local parties in Türkiye, unless the party is announced to have certain exception by the relevant authority.