The Turkish Revenue Administration has published a new Communiqué No. 319 regarding the wage/employment income.

The details of these amendments are as below:

The Scope and The Implementation of The Exemption

Per Article 4 of the Communiqué:

The income tax base calculated by deducting the social security premiums from the gross wage would be exempted from income tax.

The total amount and income tax brackets would be considered for the taxation of the wage amounts above the minimum wage.

The exemption amount cannot be higher than the income tax of the minimum wage on the related month.

If the employee receives a wage from more than one employer, the exemption would be applicable for the highest wage.

If there are any additional benefits other than the wage amount, the exemption would be applied to the total earning once, and the cumulative income tax base would be considered.

This exemption would also be applicable for the wage earnings of the board members, experts, official mediators, sports referees.

The minimum subsistence allowance is abolished and would not be applicable as of 01.01.2022.

The Turkish Revenue Administration would be responsible for determining and processing the disability income tax discounts. If the employee receives wage amount of minimum wage and thus would not pay any tax, the exemption would not be applicable for that employee. If the employee receives more than the minimum wage amount, the exemption would be applicable.

According to 27998389 - 010.06.02 - 903791 numbered Circular published by the Ministry of Treasury and Finance with the subject "Financial and Social Rights", the coefficients used to calculate the wage of a public officers have been revised effective 01.01.2022.

The previous Circular published on 06.01.2022 has been abolished.

Income Tax Exempted Severance Pay

The following value has been calculated taking these coefficients into account and shall be applied for the period between the dates of 01.01.2022 – 30.06.2022 maximum severance pay to be exempted from income tax is determined  10,848.59 TRY.

According to the 27998389 - 010.06.02 - 854887 numbered Circular published by the Ministry of Treasury and Finance with the subject "Financial and Social Rights", the coefficients used to calculate the wage of a public officers have been revised effective 01.01.2022.

Income Tax Exempted Child Support

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.01.2022 - 30.06.2022 monthly child support to be exempted from income tax is;

According to the 27998389 - 010.06.02-854887 numbered Circular published by the Ministry of Treasury and Finance with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of public officers have been revised effective 01.01.2022.

Income Tax Exempted Severance Payment

The following value has been calculated taking these coefficients into account and shall be applied for the period between the dates of 01.01.2022 – 30.06.2022 maximum severance payment to be exempted from income tax is determined as 10,596.74 TRY.

To access the full circular in which these announcements were made, please click here. (Please also be advised that the contents of this circular are in Turkish.)

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