What are the Tax and SGK Premium Exemptions on Private Insurances and Pensions

what-are-the-tax-and-sgk-premium-exemptions-on-private-insurances-and-pensions

Although the current mandatory state social security system (SSI/SGK) covers almost all of the employees as regard to health insurance and pension there also exist some supplementary private insurances which can be named as; Individual Retirement System; Private Health Insurance; Private Life Insurance.

Their tax and premium liabilities vary according to the type and the payer (employee or employer).

Table below shows the types of insurances and their premium and tax liabilities.

TYPE OF INSURANCE

SGK LIABILITY

INCOME TAX LIABILITY

Employee paid Individual Retirement Insurance

 

Not included in earnings subjected to premium. Not included in payroll

Not deductible from personal income tax liability. Not included in payroll

Employee paid Private Health Insurance

 

Not included in earnings subjected to premium

Tax deductible up to 15% of monthly wage with a cap of annual gross minimum wage (TL 14.850,00 for the second half of 2015).

Employee paid Private Life Insurance

 

Not included in earnings subjected to premium

Tax deductible up to 15% of monthly wage with a cap of annual gross minimum wage (TL 14.850,00 for the second half of 2015). Only %50 of permanent life insurance is taken into account.

Employers’ contributions to Individual Retirement Insurance

 

Deductible from earnings subjected to premium up to 30% of monthly gross minimum wage.

Tax deductible up to 15% of monthly wage with a cap of annual gross minimum wage (TL 14.850,00 for the second half of 2015).

Employer paid Private Health Insurance

 

Deductible from earnings subjected to premium up to 30% of monthly gross minimum wage.

Tax deductible up to 15% of monthly wage with a cap of annual gross minimum wage (TL 14.850,00 for the second half of 2015).

Employer paid Private Life Insurance

  Liable to SGK premium

Tax deductible up to 15% of monthly wage with a cap of annual gross minimum wage (TL 14.850,00 for the second half of 2015).

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