What Is a Withholding Tax Return? When Is It Submitted?

What Does “Muhtasar” Mean in the Turkish Tax Context?

“Muhtasar” (meaning “summary/abridged”) refers to a “summary” declaration. In tax practice, the withholding tax return—as its name suggests—includes the collective summary declarations of employers and parties who apply withholding.

In other words, taxes withheld from payments made to different individuals and entities during the month are not reported separately; instead, they are summarized in a single consolidated return and submitted to the tax office.

What Is a Withholding Tax Return (Muhtasar Beyanname)?

The withholding tax return is a return under Article 94 of the Income Tax Law, (Gelir Vergisi Kanunu) through which income tax withholdings applied to income such as wages, self-employment payments, rent, and dividends are declared collectively.

Pursuant to Tax Procedure Law No. 213 (Vergi Usul Kanunu), Pursuant to Tax Procedure Law No. 213, filing this return is a legal obligation, and an irregularity penalty is imposed on taxpayers who fail to fulfill this obligation.

With the amendment introduced as of 2020, the withholding tax return and the monthly SSI contribution and service document have been consolidated under a single form named the Withholding Tax and Social Security Contribution Service Return (Muhtasar ve Prim Hizmet Beyannamesi - MPHB). Accordingly, employers submit, through a single return in electronic form, the tax withholdings relating to their employees, the earnings subject to social security contributions, and the number of insured days.

When Is the Withholding Tax Return (Muhtasar Beyanname) Submitted?

• Monthly period: It is submitted electronically by 23:59 on the 26th day of the month following the relevant month. If the due date falls on a weekend or public holiday, it is extended to the first following business day.
• Payment deadline: The payment deadline for withholding taxes is generally until the end of the 26th day of the month following the month in which the return is filed; the detailed schedule is announced in annual tax calendars. SSI contributions are also paid based on the MPHB accrual and must be paid by the end of the following month; if the last day falls on a holiday, it is extended to the first business day.
• Quarterly period: Small-scale taxpayers may opt for quarterly filing under certain conditions; however, in workplaces where wage payments (payroll) are made, the wage section of the MPHB is filed on a monthly basis.

When Are the Withholding Tax Return (Muhtasar Beyanname) Periods?

The Withholding Tax and Social Security Contribution Service Return (Muhtasar ve Prim Hizmet Beyannamesi - MPHB) may be submitted on a monthly or quarterly basis, depending on the employer’s size, the number of employees, and the selected declaration type. However, particularly for employers who employ workers and therefore make wage payments, monthly filing is mandatory due to the SSI declarations of employees.

The table below shows the withholding tax return declaration periods for 2026:

Important Notes:

• The “26th rule”: The deadline for filing the return is the 26th day of the following month. If it falls on a public holiday or weekend, it is extended to the first business day.
• Payment: The payment deadline for withholding taxes is generally until the end of the 26th day of the month following the month in which the return is filed. The detailed schedule is announced in annual tax calendars. SSI contributions are also paid based on the MPHB accrual by the end of the following month; if the last day falls on a holiday, it is extended to the first business day.
• Calendar announcements: The annually updated taken as the basis.

How to Prepare a Withholding Tax Return

When preparing the Withholding Tax and Social Security Contribution Service Return (MPHB), the key point to consider is that not only tax obligations but also SSI contribution and day notifications must be included accurately and completely. With the integrated system in place since 2020, employers are required to declare both tax withholdings and social security notifications through a single form.

1. Preparation Before Filing the Return
• Payroll Review: It should be ensured that items such as employees’ gross wages, overtime, bonuses, contribution payments, incentives, and fringe benefits are calculated correctly in the payroll.
• Deduction Items: Income tax withholdings, stamp tax, and SSI employee contributions must be calculated correctly.
• The limits for Earnings Subject to Social Security Contributions (PEK), the carried-forward SSI contribution base, and social security contribution exemptions should be taken into account.
• Cumulative Tax Base: Employees’ cumulative income tax bases and tax brackets throughout the year must be up to date.
2. Selecting the Correct Codes

When preparing the return, the correct withholding code must be selected for each type of payment. For example:

• 011 / 012: Wage payments
• 022: Self-employment payments
• 041: Rental payments
• 302: Stamp tax

Selecting an incorrect code may result in the return being rejected or may lead to administrative penalties. For this reason, the current payment types and withholding codes must be verified through the announcements of theRevenue Administration (Gelir İdaresi Başkanlığı – GİB).

3. Completing the Return in the e-Filing System
• Login: Access the Revenue Administration’s e-Declaration portal using a financial seal or electronic signature.
• Form Selection: Open the form titled “Muhtasar ve Prim Hizmet Beyannamesi” ( Withholding Tax and Social Security Contribution Service Return)
• Tax Section: Enter income tax withholdings and stamp tax amounts, coded according to payment type.
• SSI Section: Enter employees’ Turkish ID numbers, earnings subject to social security contributions (PEK), the number of insured days, and employer incentives.
• Validation: Run the automated check in the GİB system to ensure the form has been completed without errors.
4. Submission and Approval of the Return
• Approval: The return is approved by a certified public accountant or an authorized person using an electronic signature/financial seal.
• Accrual Slip: Once the return is successfully submitted, an accrual slip is obtained. This slip shows the payment items for both withholding taxes and SSI contribution liabilities.
• Payment: Calculated taxes are paid to the relevant tax office, and SSI contributions are paid via the SSI collection system.
5. If a Correction Is Required

If an incorrect or incomplete declaration is identified, a correction return may be submitted. For corrections in the SSI section, corrections made within 5 business days following the end of the submission period may, in certain cases, be deemed as “submitted on time.” In this regard, current SSI circulars should be taken into consideration.

In Summary: Preparing the withholding tax return is not limited to tax calculation alone. Payroll data must be obtained correctly, incentives must be applied properly, full compliance with SSI and tax legislation must be ensured, and error-free coding must be performed in the e-Filing system. For this reason, many employers prefer to manage this process through professional payroll outsourcing firms or certified public accountants.

Who Must File a Withholding Tax Return?

Pursuant to Article 94 of the Income Tax Law (GVK), parties who are obliged to apply tax withholding (including employers) must file a withholding tax return:

These include:

• Employers making wage payments,
• Parties making self-employment payments,
• Parties making rental payments,
• Parties making progress payments within the scope of multi-year construction works,
• Parties applying withholding on agricultural product purchases,
• Public administrations, etc.

Withholding Tax Return Codes

The list below focuses on the most used codes in practice. Since code updates may occur during the year, it is important to check the announcements of the Revenue Administration (GİB) and the current version of the return preparation software. (Updates were made to payment/type codes in June 2025.)

Withholding Tax Return Calculation Example

For 2026, let’s calculate step by step—through examples—the withholding taxes and SSI contributions that will be reflected in the withholding tax return based on an employer’s payments. For example;

1. Payroll and Payment Information

• Total gross wages paid to employees: TRY 120,000.00
• Self-employment payment: TRY 30,000.00
• Workplace rent (Net rent): TRY 30,000.00

2. Calculation of Tax Withholdings

Income Tax Withholding (Wages – GVK Art. 94/1-a):

Let’s assume that it falls within the 15% bracket based on the cumulative tax base.

3. SSI Contribution Calculations

• Earnings Subject to Social Security Contributions (PEK): TRY 120,000.00
• Employee SSI share (14%): TRY 16,800.00
• Employee unemployment insurance (1%): TRY 1,200.00
• Total employee SSI deduction: TRY 18,000.00
• Employer SSI share (21,75%): TRY 26,100.00
• Employer unemployment insurance (2%): TRY 2,400.00
• Total employer SSI cost: TRY 28,500.00 (without incentives)
• Total employer cost: TRY 148,500.00 (without incentives)

4. Summary of Results

5. Conclusion

In this scenario, based on a total of 120,000 TRY in gross wages, 30,000 TRY in self-employment payments, and 30,000 TRY in rent, the employer will have:

• TRY 25,248.77 in withholding taxes to be included in the withholding tax return,
• TRY 18,000.00 in SSI deductions as the employee’s
• TRY 28,500.00 in SSI contributions as the employer’s liability.

Withholding tax return calculations cover not only income tax withholding, but also items such as wages, rent, self-employment payments, and stamp duty. When assessed together with SSI contributions, the employer’s obligations to both the tax office and the SSI are consolidated into a single declaration (MPHB).