The statutory deductions applicable in a standard Turkish payroll are social security premium, income tax, and stamp tax. Also, the salaries generated from liaison offices in Türkiye are exempt from income tax per the article 34/14 of Income Tax Law and these are only subject to social security.

Social Security Premium

Social Security Premium are calculated over wages monthly and are paid jointly by the employee and the employer. The contribution rates are as follows:

In case of the death of an employee, there are some payment obligations of the employers due to Labor Law No. 1475, Article 14, and the Turkish Code of Obligations No. 6098.

In case of the employee's death, all salaries, benefits in kind, and private life insurance guarantees would need to be paid to the employee's legal heir.

In addition, the following payments would also be applicable in case of the death of an employee:

1. Severance Payment

Per the 14^th Article of Labor Law No. 1475, in case of the termination of an employment contract upon the employee's death, the severance payment equal to a 30-day salary should be paid to the employee for each full year that has passed during the period of the service/employment contract as of the starting date of the employment. For periods exceeding one year, the payment should also be made based on the same proportion.

Also, in case of the employee's death, the severance payment per the above statements should be paid to the legal heirs of the employee.

According to these statements, if the employee has completed 1 year, it is an obligation to pay severance pay to their legal heirs.

The Tax Amnesty Law No. 7326 has been published with the Official Gazette numbered 31506 and dated 09.06.2021.

Social Security Institution has published the Circular No. 2021/20 related to this Law.

In the Circular, the application methods for the SSI receivables are elaborated along with the statements on the Tax Amnesty Law No. 7326.

The details under the topic "Application Timeline, Methods and Instalment Payments" can be summarized as below:

Per the 9th Article of Law No. 7326, the application deadline for the social security receivables is 31.08.2021 until 23.59. Furthermore, the applications would need to be done in person via mail, e-Government portal, or e-SSI portal.

Regarding the employees working under the status of Law No. 5510, Article 4/a; the applications can be done via e-SSI with the password or via mail for social security premiums, unemployment premiums, social security support premium, administrative fines, stamp taxes, special process tax, education contributions, outstanding premiums due from under-employment.

The Law regarding Tax Amnesty and Tax Reconstruction has been published with the Official Gazette numbered 31506 and dated 09.06.2021.

The scope of this Law can be summarized as below:

• Specified receivable (Article 2)
• Outstanding receivable or receivables in the lawsuit phase (Article 3)
• Transactions in the investigation phase (Article 4)
• Tax Amnesty (Article 5)
• Correction of the company bookings (Article 6)
• Specified Social Security Institution receivables (Article 7)
• Outstanding administrative fines and employment premium amounts in the investigation phase (Article 8)