Withholding Tax Returns And Social Security Institute Declarations Are To Be Combined: Withholding Tax And Premium Service Return

Withholding Tax Returns and Social Security Institute Declarations are to be combined: Withholding Tax and Premium Service Return

Pursuant to the “Law on Amendments to Certain Laws for Improving the Investment Environment” as published in the Official Gazette no. 29796 on 09/08/2016, the first steps towards combining the Withholding Tax Return and Monthly Premium & Service Declaration (Social Security Institute (SSI) Declaration) have been taken. The Ministry of Finance Communiqué published in the Official Gazette on 18 February 2017 lays down the details of the implementation of this process.

As of 01.01.2018, Withholding Tax Returns and Monthly Premium & Service Declarations will be combined into a single return under the name of “Withholding and Premium Service Return”. In the city of Kırşehir, which has been designated as a pilot zone, this new return structure will be launched on 01.06.2017 and will apply to companies subject to taxation (with the exception of banks).

The “Withholding Tax and Premium Service Return” will be delivered to the tax office which taxpayers are affiliated with. For those who are in the position of taxpayers liable to pay income (withholding) tax at more than one tax office, they will file their said returns to such tax office located at the place where the income tax deduction made from the wages of their employees is to be declarated.

For taxpayers with less than 10 employees and which file the Withholding Tax Returns on a quarterly basis:

• If there are personnel, wage-related SSI and tax returns will be filed monthly, while profits, revenue and taxes charged over these will be filed on a quarterly basis;
• If there are no personnel, profits, revenue and taxes charged over these will be filed on a quarterly basis.

In order for the new process to take effect, taxpayers are first required to link their tax ID numbers and the workplace SSI registration numbers online at “https//intvrg.gib.gov.tr” by 31.03.2017 through their users authorized to file their tax returns.

Please contact your customer representative or a specialist for detailed information.

You can view the communiqué which lays down this regulation here.