Late Submission of Private Health Insurance Receipts for Tax Exemption

The Revenue Administration has issued a ruling (February 25, 2025 dated ve 15584 numbered) on the treatment of tax deductions when employers are notified of private health insurance payments after the specified time frame.

The following points are summarised in this matter:

• A private health insurance policy is in effect from October 14, 2023 to October 14, 2024.
• Policy premiums are paid on time in instalments.
• Payment documents/receipts were not submitted to the employer in the months of payment but were instead provided later, in July 2024.
• The issue in question is whether the private health insurance premiums paid for the previous period can be deducted from income tax as of July 2024.

The Revenue Administration's response addresses the following points:

• Private health insurance premium payment documents submitted after the deadline can be deducted from the income tax base for the remaining months, including the month of document submission.
• The deduction period is limited to the policy term (e.g., October 14, 2023 – October 14, 2024).
• A private health insurance payment relating to the previous calendar year can also be deducted for the remaining months, provided it falls within the policy period.
• The monthly deductible amount is calculated by dividing the total premium by the number of remaining months, including the month of document submission, and can be deducted from income tax base, provided it does not exceed the statutory monthly limit.

Conclusion

The Revenue Administration, referred to the following legislative provisions:

• Article 63 of the Income Tax Law
• Section 8.2 of Income Tax Circular No. 85 – "Deduction of Paid Individual Insurance Premiums in Determining the Tax Base"
• Section 4 – "Other Deductions to Be Considered in Determining the Tax Base" of Income Tax General Circular No. 147

Accordingly, the provisions of this ruling could apply where:

• The insurance policy is issued by a pension or insurance company established and headquartered in Türkiye.
• The insurance policy covers the employee, their spouse, and/or their minor children.
• 50% of premiums paid for life insurance policies and premiums paid for personal insurance policies (such as death, accident, health, illness, disability, unemployment, maternity, childbirth, and education) may be taken into account.

You can reach the Income Tax Ruling via that link (In Turkish).