Annual Tax Declaration Obligation of Employees For 2022

Annual Tax Declaration Obligation of Employees For 2022

The deadline for 2022 annual income tax returns is 31.03.2023.

For 2022 tax year, an annual income tax return should be submitted for the income taxed via withholding in the below cases:

• In case of total income amount of employees, who receive salary income from a single employer, exceeds the amount indicated in the fourth income bracket (880.000 TRY for 2022) of the tariff written in the 103rd article,
• In case of total income amount of employees, who receive salary income from more than one employer, exceeds the amount indicated in the fourth income bracket (880.000 TRY for 2022), including the income received from primary employer,
• In case of employees who receive income from more than one employer, total income received from the secondary employers exceeds the amount in the second income segment of the income tax tariff (70.000 TRY for 2022),

wage incomes should be declared via annual declaration.

• In case of income is received from more than one employer, the employee can freely choose which income will be considered as primary.
• It will be evaluated internally whether the salary income will be declared or not, and in case of other incomes are present, they will not be included in the calculation.
• In case annual declaration is to be submitted, it is possible for expenses of education, health, donations and charities to be subject to deductions of the declared income.
• Taxes paid by stoppage / withholding can be deducted from income tax calculated over the declaration.
• Salary income which are not subject to stoppage / withholding (excluding other salaries) will be declared as per the 95th article of the same Law, regardless of their amounts.

Status of the employee who work for more than one employer in private sector workplaces

1) In below circumstances, employee is considered as receiving salary from more than one employer:

• In addition to the wage earned by an employee working alongside a private sector employer during the year, earning salary income from another private employer or public institution or organization.
• While working alongside a private sector employer, leaving job and starting to work alongside another private employer or public institution or organization within the same calendar year.
• Salary income earned by the employee working alongside income or corporate taxpayers in the same calendar year when they start working within the business partnership or ordinary partnerships which taxpayers are partners of.

2) In case of salary income is received from more than one employer, they will be taxed separately, and salary bases will not be associated with each other. In case of the employee changes employers, salary to be received from the new employer will not be associated with previous salary basis and zero basis will be based on.

3) Below circumstances are considered as employee is receiving income from a single employer:

• Merger of two separate private sector companies (transfer, type change and separation are included).
• Within the scope of the Labor Law numbered 4857, in places where principal employer-subcontractor relationship is applicable, change of subcontractor.
• Change of any shareholders in companies operating as partnerships.

4) Salaries that are considered to be received within the same calendar year will be taxed over cumulative basis.

5) Employee, who changes employers within a year, can request cumulative taxation in accordance with tariffs of income tax basis regarding salary income, by notifying the new employer. In case of a liability of declaring income as per cumulative basis of salary income, already paid taxes via payroll withholding can be deducted on the annual declaration.

For the details on how to submit an annual tax return via the pre-filled tax return system of the Revenue Administration, you can click the link.

The details of the subject are included in the General Communiqué dated 27.05.2020 and serial number 311 published by the Revenue Administration. You can click the link for the details.

Should you have any queries or need further details, please contact your customer representative.

Click on the link below to download the infographic.