Tax Law No. 7524 Introduces Fee Exemption for Issuance of Share Certificates to Employees

With the Law No. 7524 "Law on the Amendment of Tax Laws and Certain Laws and Decree Law No. 375", which entered into effect after being published in the Official Gazette dated August 2, 2024 and numbered 32620, new regulations were made in the tax legislation. One of the important regulations is related to the "wage exemption in the issuance of share certificates to employees".

"Wage exemption for the benefits provided to the employees by giving share certificates:

ARTICLE 17- According to the criteria determined by the Ministry of Industry and Technology, the portion of the fair value of the share certificates given free of charge or at a discount to the employees by employers who have the qualifications of techno-venture companies and accepted as wages, which does not exceed the amount of one year's gross wage in that year, is exempt from income tax."

In this regard, if the share certificates acquired by the employees in this way are disposed:

• All of the exempted tax in case of disposal within three full years from the date of acquisition,
• 75% of the exempted tax in case of disposal within four to six years,
• 25% of the exempted tax in case of disposal within seven to twelve years,

The tax will be collected from the employer together with the default interest without any tax loss penalty.

The relevant regulation entered into effect on August 2, 2024 and the criteria to be determined by the Ministry of Industry and Technology are expected to be published.

You may access related Official Gazette from here (In Turkish).

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