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.