Turkish Labor Law
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Income tax withheld from employees’ earnings is paid monthly through payroll; however, it may also need to be declared. Tax returns, which must be submitted in March of the year following the end of the taxation period, are completed online using the “Ready Declaration” system available on the Revenue Administration’s website.
Who Must Submit a Tax Return?
- Wages from which no income tax was withheld during the payment period and which are not within the scope of exemption
- Those whose total wages, from which income tax was withheld during the payment period, exceed 4,300,000 TRY for the year 2025
- Those whose total wages received from a second or subsequent employer, from which income tax was withheld during the payment period, fall within the second tax bracket (330,000 TRY for 2025)
Transfer of Cumulative Income Tax Base
Employees who change jobs during the year and begin working for different employers may, upon request, transfer their cumulative income tax base to their new workplace. However, the new employer’s consideration of the cumulative income tax base does not eliminate the obligation to file a tax return.
Deductions That Can Be Used in the Tax Return
While determining the income tax base during the completion of the tax return, the following deductions may be declared. Through these deductions, it is also possible to receive a tax refund.
- Personal Insurance Premiums
- Education and Health Expenditures
- Donations and Aid
- Donations and Aid for Educational, Health, and Religious Facilities
- Donations and Aid within the Scope of Food Banking
- Donations and Aid for Cultural and Tourism Purposes
- Sponsorship Expenditures
- Donations and Aid to Campaigns Initiated by the President
- Cash Donations and Aid to the Turkish Red Crescent Association and the Turkish Green Crescent Society
- Donations and Sponsorship Expenditures to the Cappadocia Area Directorate
Donations and aid fully deductible under other laws:
- All cash donations made to the fund established under Law No. 7269 regarding measures and assistance for disasters affecting public life, as well as in-kind/cash donations made to national or local aid committees against receipt
- Cash and in-kind donations made to universities and Institutes of High Technology under the Higher Education Law, as well as donations and aid made to foundation universities
- Donations and aid made under the Law on the Encouragement of Social Assistance and Solidarity
- Cash donations made under the Law on the Establishment of the Scientific and Technological Research Council of Turkey
- In-kind and cash donations made under the Social Services and Child Protection Agency Law
- In-kind/cash donations made under the Law on the Atatürk Culture, Language and History High Institution
- In-kind/cash donations made under the Law on the Turkish Armed Forces Foundation
- In-kind/cash donations made under the National Afforestation and Erosion Control Mobilization Law
- Cash donations made to primary education institutions pursuant to Article 76 of the Primary Education and Education Law
Example 1:
Assume that the cumulative income tax base from earnings at the first employer is 3,000,000 TRY, and the cumulative income tax base from earnings at the second employer is 320,000 TRY. The total cumulative income tax base obtained will be 3,000,000 + 320,000 = 3,320,000 TRY.
Since the total amount does not exceed the fifth tax bracket of 4,300,000 TRY for 2025, and the income obtained from the two employers remains below the second tax bracket (330,000 TRY for 2025), there is no obligation to file a tax return.
Example 2:
Assume that the cumulative income tax base from earnings at the first employer is 900,000 TRY, and the cumulative income tax base from earnings at the second employer is 760,000 TRY. The total cumulative income tax base obtained will be 900,000 + 760,000 = 1,660,000 TRY.
Although the total amount remains below the fifth tax bracket of 4,300,000 TRY for 2025, a tax return must be filed because the wage income obtained from the second employer exceeds the second tax bracket (330,000 TRY for 2025).
