Part of the wage that constitutes the amount of minimum subsistence level is not subject to income tax for real persons in Turkey legislation.
Minimum Living Allowance is calculated on the basis of minimum wage regardless of the total earning, and in accordance with the marital status and the number of the children of the employee.
The following rates of annual gross minimum salary are not subject to income tax;
50% for the employee
10% for the non-employed spouse
7,5% for each of the first two dependent children and 10% for third dependent child and 5% for the following dependent children.
Annual gross minimum wage will be multiplied with the total percentage (corresponding to employee) to find the amount not subject to income tax; and the found amount will be multiplied by the first tax bracket percentage (15% for 2015) to find the annual deductible tax. And monthly amount of MLA can be found by dividing 12.
EXAMPLE OF MINIMUM LIVING ALLOWANCE CALCULATION*
Employee married with working spouse and has 2 dependent children
Annual Gross minimum salary: 1.201,50 x 12 = 14.418 TRY
%50 for employee + (2x%7,5=%15) for children + %0 for working spouse = %65
14.418 x %65 = 9.371,70 TRY
9.371,70 x %15 (First tax bracket percentage of calendar year) = 1.405,75 TRY (Total annual amount to be deducted from income tax)
1.405,75 / 12 = 117,15 TRY Monthly minimum living allowance.
*For 1st May-31st December 2015
TABLE OF MINIMUM LIVING ALLOWANCE AMOUNTS FOR 2015 (MAY-DEC)
|Married/Spouse employed||90,11 ₺|
|1 child||103,63 ₺|
|2 children||117,15 ₺|
|3 children||135,17 ₺|
|4 children||144,18 ₺|
|5 children||153,19 ₺|
|Married/Spouse unemployed||108,14 ₺|
|1 child||121,65 ₺|
|2 children||135,17 ₺|
|3 children||153,19 ₺|
– Employee should fill in and submit the Family Status Declaration to the workplace, declaring his/her marital status and number of children, and employment and income status of the spouses.
– Children, in the application of MLA means, those who did not completed 25 years of age while being educated or those who did not completed 18 years of age staying with tax payer or looked after by the tax payer. (including alimony receivers, adoptive sons, and grandchildren lost their mother and father living with tax payer).
– Deduction will be applied; only to either wife or husband for children, each one of family members receiving wage income provided not to exceed the amounts calculated as per the above rates.
– For divorced, the number of children granted an alimony is taken into consideration when calculating allowance.