Business in Turkey

Tax Exempt Daily Allowance Amounts 2018

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Daily Allowance is the money paid to employees in daily basis while they are working away from their workplace whether within the same country or abroad.

Tax exempt daily allowance amounts are determined by General Directorate of Budget and Fiscal Control in line with Travel Expense Law No.6245 twice a year.

Regional Incentive Extended

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In order to eliminate the regional imbalance, government applies 6 point social security premium support for the companies established in underdeveloped regions for certain periods in line with the Law No. 6486, dated 29 May 2013 issued in Official Journal No. 28661, dated 25.5.2013.

Incentives have started as of 1 January 2013 in the regions classified under 3 groups for 4, 5, and 6 years. Now with the Cabinet Decree No. 2018/11190, incentive application is extended one year for the regions included in the 1st and 2nd group. As a result regional incentives will be applicable for all groups until 31 January 2018

Turkey's Attraction Area Program Rearranged

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Attraction Area Program that aims at providing incentives to the investments in 23 provinces of eastern and southeastern Anatolia has been rearranged by a Cabinet Decree issued in Official Journal numbered 11201, dated 25 January 2018.

Attraction Area Program used to provide supports on advisory services, land allocation, building construction, interest free investment loans and lower interest operational loans to manufacturing industry, call centers and  data centers in the region of Adıyaman, Ağrı, Ardahan, Batman, Bayburt, Bingöl, Bitlis, Diyarbakır, Elazığ, Erzincan, Erzurum, Gümüşhane, Hakkari, Iğdır, Kars, Malatya, Mardin, Muş, Siirt, Şanlıurfa, Şırnak, Tunceli ve Van. 

Cabinet Decree 2016/9596 is repealed and new program is issued in the official Journal numbered 2018/11201, dated 25 January 2018.

How to Notify Work Accident of Foreign Employee?

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Work accident notification of a foreign employee should be made manually.

Foreign employee who had a work accident must be immediately notified to security forces (police or gendarmeries) by the employer.

Notification to SSI will be made within 3 work days following the date accident is occurred. Weekends and public holidays are not counts, for example if the accident occurred on Wednesday notification should be made on next Monday at the latest.

FAQs On Minimum Living Allowance

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What is minimum living allowance?

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 (MLA/AGİ)  is calculated on the basis of annual minimum wage regardless of the total earning, and in accordance with the marital status and the number of the children of the employee.

Transfer of an Employee in February

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Transferring an employee (as exit and re-employment) between the workplaces belongs to same employer may cause loss of insured days in the month of February.

In Turkey’s labor legislation number of working days within a month is considered 30, regardless of the actual number of days the month includes in. In other words the workdays of January (31 days), February (28 or 29 days) or March (30 days) is the same from the point of SSI application.  

The employer may transfers the employee to another establishment within the structure of the same holding company or the same group of companies. In case the workplaces are registered under different numbers in SSI, the transfer process will be performed by submitting leaver and new starter declarations, i.e. employee will leave the old workplace and be a new starter in the other.

SPECIFIC CONDITION OF FEBRUARY

As we stated above, SSI premium days for employees who worked full in February is 30, however in case of starting or leaving work during the February the actual days will be taken into account.

Examples: Leavers/New starters in February.

Employee transferred from workplace A to workplace B at 5th February 2017.

 His workdays in A = 4 days

His workdays in B = 24 days (28-4).

Premium paid days will be: 28 days.

Employee will lose 2 premium paid days.

As a result it is recommended that companies try to avoid transferring their employees.

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