In accordance with the publication of the Law that was published in the 09.08.2016 dated Official Gazette numbered 29796, it has been announced that the Withholding Tax Return and Monthly Premium & Service Declarations are to be combined under a single return called “Withholding Tax and Premium Service Return”. Within the scope of this announced statement, the single return application was postponed to October 1, 2018 for Türkiye.

Subsistence (Daily Subsistence)

The concepts of travel allowance and subsistence are constantly being confused in our legislation. Although there are very important differences, it is known that SSI premiums are deducted from travel allowance and subsistence is not included in SSI premiums. Below are Mr. Resul Kurt and Mr. Mehmet Maç’s articles on the subject.

As subsistence is included in the Income Tax Law Article 24 which mentions the equivalents of expenses, they are fundamentally a business-related expense and not an allowance provided to an employee. However, they happen to be a benefit and allowance in cases when they are paid in lump sum under the name of daily subsistence and not as an exact and certified travel expense and when partially saved by the employees. The amount beyond the legal degree qualifies as a payment subject to taxation.

Dear Valued Client,

We would like to remind you about a development which will enter into force on October 2018 unless any delay occurs.

Overview

Pursuant to the 18/2/2017 dated General Statement on the Withholding Tax Return and Monthly Premium & Service Declarations which is published in the 29983 numbered Official Gazette, it is announced that WITHHOLDING declaration that should be provided due to tax legislation and MONTHLY PREMIUM & SERVICE DECLARATION which should be provided due to 5510 numbered Social Securities and General Health Insurance Law, are to be combined under a single return called “Withholding Tax and Premium Service Return”. Afterward, this transition process is delayed several times because of technological infrastructure and practical difficulties. Most recently, the implementation is extended to the date of 01.10.2018 with the revision on the “General Statement on the Withholding Tax Return and Monthly Premium & Service Declarations” (Item No:1) published within 30345 numbered and 29.05.2018 dated Official Gazette by the Ministry of Finance.

As per to the Article 4 of The General Communiqué Sequence Number: 483 of Tax Procedure Law, published in the Official Gazette dated 30.09.2017, the fiscal information regarding day end Z-reports obtained on daily basis from the old and new generation cash registers (except for users of cash registers with mobile EFT-POS features) should be submitted to the Turkish Revenue Administration as from 01.10.2018.