Business in Turkey

The Complementary Pension System (TES) has been a topic of interest for millions of employees and employers. Implemented within the severance pay fund, TES will introduce a series of innovations. What is TES? TES is an additional pension system that aims at preventing the fall in the living standards due …

Short term work allowance and unpaid leave support have been the leading government incentives to fight against Covid-19 crisis. More than 3 million applications were made for the short term work allowance. With the load of applications submitted in such a short timeframe, it is highly probable to have errors …

In case of losing their jobs, employees are entitled to severance pay in return for their labor within the time spent in the institution. Severance pay is aimed at supporting employees’ livelihood during the period they seek for new jobs. Annual leave is another right given to the employee to …

Before the Covid-19 pandemic, there were not many applications for the short term work allowance which used to be the legislation for years. However, with Covid-19, the applications for the short-term work allowance soared and processing the applications has increased ISKUR’s workload significantly.  The employers who had submitted their application …

As part of the economic measures taken against Covid-19, the short term work allowance and the new temporary arrangement of unpaid leave have helped employers with their cash flow management in the short run.  It is possible to shift from unpaid leave to short term work and from short term …

One of the postponements SGK made post-Covid-19 was regarding premium payments for employees over 65 years old. With SGK’s General Letter no. 5157380, dated 24 April 2020, in line with the measures taken due to the Covid-19 epidemic, the payment of the insurance premiums for the workplaces within the scope …

The Income Tax General Communiqué published in the Official Gazette on May 24, 2020, introduced no changes in the applicable income tax brackets. The changes to tax brackets were announced in the New Tax Package at the end of 2019, with a 5% increase.  Until this recent tax package, the …

The Social Security Institution (SSI) once again changed the submission deadline to declare for retrospective incentives. The new deadline to submit is 30 June 2020. SSI had previously abolished retrospective incentives in 2015 with a circular, which was followed by various lawsuits filed against the Institution. Later, an omnibus law …

Let’s first define the Cumulative Income Tax Basis and how it works in Turkey. Cumulative Income Tax Basis, or abbreviated as KGVM, refers to the total of income tax bases in a calendar year, used to determine the income tax rate. In order to decide from which rate the income …

The ban of work termination was introduced back in April 17 as an economic measure in Turkey to fight the effects of Covid-19. The ban period was pre-determined as 3 months, ending on July 17. However, the President had the right to extend it for another 3 months if deemed …