Based on Finance Minister’s last week announcement we had informed you that the tax rate applied to 3rd income bracket will be increased to %30 from %27 in 2018. However, during the discussion in the General Assembly this arrangement has been removed from the draft law (Draft law on Amending Some Tax Laws and Governmental Decrees), and taxable income brackets will be the same next year.
Business in Turkey
We informed you that; starting from 2018, income tax rate that applied to 3rd taxable income bracket will be increased from 27% to 30%.
Withholding tax amount applied on the wages is calculated by taking into consideration the cumulative income tax base during the year.
Annual vacation –also called paid annual leave- is a right given to employees to have a rest within a year. Leave periods usually depend on the length of service.
On the other hand employees may take unpaid leaves for various reasons that may be statutory or arisen from employee’s personal needs.
The unpaid leaves may affect the computation of the length of service required to qualify for paid annual leave differently. As a rule, unpaid leaves are not taken into consideration in the calculation of employee’s seniority, i.e. these periods are deemed as non-worked days.
For example: Employee’s employment start date is 10 October 2017. If he uses 10 days unpaid leave, his entitlement to annual vacation will start in 20 October of 2018.
Turkish Cabinet Decree No. 2017/10679 on “Social Security Agreement between Republic Of Turkey and Kingdom of Belgium,” which is approved by Law No. 6982 as to be implemented , has been issued in duplicate Official Gazette No. 30194, dated 28 September 2017.
As we have already informed you that the Social Security Agreement between Turkey and Kingdom of Belgium signed in Ankara on 11th April 2014 had been adopted in Parliament and the related Law No. 6982 had been published in the Official Gazette on 3rd April 2017.
As is known, December 2016, January, February 2017 premium payments of private sector employees who benefit from Treasury’s minimum wage support had been postponed to 2017 October, November and December, as per Omnibus Bill No.6770 issued in Official Journal on 27 Jan 2017.
These amounts are used as a credit with no interest especially by SMEs (Small and medium Establishments).
2017 net minimum wage will not be affected from the shift on taxable income brackets and will not get lower than 1.404 TRY.
Draft law on Amending Some Tax Laws and Governmental Decrees , intended to prevent any decrease in 2017 net minimum wage due to shift in the taxable income brackets, has been presented to General Assembly and expected to be in force soon.
All employers are obliged to notify their workplace and employers to the police station at which the workplace is established, as per the article 6/b of “Identity Notification Law No. 1774”.
Employers within this scope have to submit their temporary and permanent employees' identity information by "Manager Identity Notification Form" and “Employees' Identity Information Form" to their registered police headquarters, after had these documents approved by mukhtar of neighborhood in which the workplace take place.
Those who, by violating the Identity Notification Law No. 1774, don't submit the above mentioned notifications will be imposed administrative fines amounting from 33 TRY for the year 2017.
At the present time, the notification is made online.
Yes! Labor legislation of Turkey is applicable to Turkish citizens and foreign employees alike. Also, the Turkish Constitution contains provisions concerning equality, and guarantees the right to social security for everyone.
Anyone who are working against wage under an employment contract and paying their social security premiums will be entitled to retirement from SGK/SSI. In practice, social security premiums of an employee are deducted from their salary and paid to SSI by the employer. Even in case of entitled employee’s death, dependent spouse and children will benefit from the pension.
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