The Omnibus Bill numbered 7061 entitled “Law on Amending the Current Tax Laws, and Laws, and Decree Laws” has been published on the Official Gazette dated 05.12.2017. Below, we will review the Bill in terms of tax implementations, firstly in the form of headings and then in detail.

OMNIBUS BILL SCOPE AND CONTENT

1. Regulations Regarding the Corporate Tax Law
2. Regulations Regarding Income Tax Law
3. Regulations Regarding Value Added Tax (VAT) Law
4. Regulations Regarding Special Consumption Tax (ÖTV) Law
5. Regulations Regarding Tax Procedural Law
6. Regulations Regarding Expenditure Tax Law
7. Regulations Regarding Law on Inheritance and Succession Tax
8. Regulations Regarding Motor Vehicle Tax Law
9. Regulations Regarding Real Estate Tax Law

The “Labor Courts Code no 7036” which introduces a mandatory mediation mechanism, and which governs the establishment, jurisdiction, tasks and trial procedures of the labor courts, has been published in the Official Gazette dated 25.10.2017. Article 3 which governs the condition to apply to the mediator under the Code, and Articles 11 and 12 which contain the “abolished provisions”, will enter into force as of 1 January 2018.

Pursuant to the said Code, applying to a mediator at the first stage, shall be sought for as a cause of action in lawsuits to be instituted with a claim for employee/ employer receivables/compensation or re-employment claim, based on personal or collective labor contracts. Matters in dispute for which one must apply to mediation, including any claim for receivables or compensation, should arise from the employment relation. In this kind of cases, in case one directly initiates a lawsuit, the relevant court shall duly dismiss the case due to lack of cause of action.

According to the circular numbered 27998389-010-06-02-5820 released by the General Directorate of Budget and Fiscal Control on 07.01.2017 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective as of 01.07.2017.

a. Income Tax Exempted Severance Pay

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2017 – 31.12.2017 maximum severance pay to be exempted from income tax is 4.732,48.- TL,

Due to overtime and extra hours regulations in Türkiye, employers are obliged to seek consent from their employees in writing at the beginning of every year and keep it in the employee's respective personnel file.

Click here to download the bilingual consent form applicable for 2017.