Ministry of Customs and Trade has declared a revision on company establishment procedures to fasten the establishment processes since preparing the necessary documents regarding the establishment process requires great amount of time and creates great costs. With the announcement being made on December 12, 2016 on the Official Gazette, the amendment made by the Ministry of Customs and Trade has gone in effect.

It has been announced in the Official Gazzette numbered 29871 dated 28.10.2016 that Temporary Article 86 has been added to Income Tax Law numbered 193 in order to close the gap for employees registered to social security who have experienced a decrease in net income below the level of 1300.99 TRY as of the month of October 2016 due to increaseing income taxes.

Additionally, the aforementioned Official Gazzette includes details related to the Income Tax Announcement with the serial number 294 and the applications which have come into effect as of 01.10.2016.

The Law regarding ‘’The Restructuring of Certain Receivables’’ – also known as Tax Amnesty, which also includes the restructuring of public receivables in many various tax types, has come into effect with the publishing of Official Gazette dated 19th of August 2016. In this framework, we will review the details of this law along with the notification published by Ministry of Finance on 23rd of August 2016.

A ) Income Tax Exempted Severance Pay

According to the circular numbered 27998389-010-06-02-6152 released by the General Directorate of Budget and Fiscal Control on 07.01.2016 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective 01.07.2016.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2016 – 31.12.2016;

1. Maximum severance pay to be exempted from income tax is 4.297,21.- TL,