Law No.6663 on Amending Income Tax Law And Certain Other Laws

The Condition of "Employment of Ten or More Workers" Required to Make Benefit of Additional Six Points Insurance Premium Incentive has been Changed!

The conditions for making benefit of the incentive have been changed by the Law No.6663 on Amending Income Tax Law and Certain Other Laws published in the official Gazette dated 10.02.2016.

• 6663 / ARTICLE 28- The phrase which reads "Workplaces which employ ten or more insured workers" in the Law No 5510, Article 81, second paragraph has been replaced with the phrase which reads “Private sector workplaces which employ insured workers within the scope of Article 4, first paragraph, sub-paragraph (a) hereunder”.

In this way, more workplaces will be covered by the incentive and make benefit of the additional six points reduction from the employer's share based on the socio- economic development index

*Article 28 will enter into force in the beginning of the subsequent month following its publication.

A brief explanation of the short history, purpose, scope, incentive rate and enforcement term of the incentive is given below.

• In addition to the five points treasury grant pursuant to Law No:6486 on Amendment to Social Insurances and General Health Insurance Law and Certain Other Lawspublished on 29.05.2013 and Law No 5510 on Social Insurances and General Health Insurance, Article 81, an additional discount has been assigned, applicable to the lower threshold of the premium contribution base.
• The enclosed decree on additional point applicable to the lower threshold of the insurance premium contribution base, the list of the provinces where the additional point will be applied and the enforcement term has been promulgated pursuant to Law No 5510 on Social Insurances and General Health Insurance, Article 81, second paragraph by means of the Cabinet Decree No 2013/4966 dated 14.07.2013.

ARTICLE 1 – (1) The purpose of this decree is to increase production and employment opportunities by applying insurance premium employer's share incentives in the places listed in the enclosed lists which have been determined taking into consideration the socio-economic development index.

(2) This Decree covers; private sector workplaces which employ 10 or more insured workers , which operate in the places listed in the enclosed lists no. (I), (II) and (III) and make benefit of Law No 5510 on Social Insurances and General Health Insurance, Article 81, first paragraph, sub-paragraph (ı).

Additional Insurance Premium Incentive Rate and enforcement term

ARTICLE 2 – (1) In addition to the five points premium incentive applied to the disability, old-age, and death insurance premiums paid by the employer granted to the private sector workplaces operating in the places listed under Article 1 pursuant to Law No 5510, Article 81, first paragraph, sub-paragraph (ı), insurance premium incentive shall be granted by adding six points to the lower threshold of the insurance premium contribution base.

The incentive within the scope of this Decree shall be applicable;

• by 31/12/2016 for the workplaces operating in the places listed in the enclosed List (I),
• by 31/12/2017 for the workplaces operating in the places listed in the enclosed List (II),
• by 31/12/2018 for the workplaces operating in the places listed in the enclosed List (III).

For the enclosed lists: Click.