The Income Tax General Communiqué published in the Official Gazette on May 24, 2020, introduced no changes in the applicable income tax brackets. The changes to tax brackets were announced in the New Tax Package at the end of 2019, with a 5% increase. Until this recent tax package, the …Read More »
When is the Last Day to Submit a Declaration for Retrospective Incentives?
The Social Security Institution (SSI) once again changed the submission deadline to declare for retrospective incentives. The new deadline to submit is 30 June 2020. SSI had previously abolished retrospective incentives in 2015 with a circular, which was followed by various lawsuits filed against the Institution. Later, an omnibus law …Read More »
Does the Worker Have to Carry the Cumulative Income Tax Basis?
Let’s first define the Cumulative Income Tax Basis and how it works in Turkey. Cumulative Income Tax Basis, or abbreviated as KGVM, refers to the total of income tax bases in a calendar year, used to determine the income tax rate. In order to decide from which rate the income …Read More »
Ban of Work Termination Extended for 3 Months
The ban of work termination was introduced back in April 17 as an economic measure in Turkey to fight the effects of Covid-19. The ban period was pre-determined as 3 months, ending on July 17. However, the President had the right to extend it for another 3 months if deemed …Read More »
Who Gets Short Term Work Allowance – Employers or Employees?
Short Term Work Allowance is a measure taken by the Turkish Government to prevent the shrinkage of the economy due to Covid-19. There are quite a few questions that most wonder about the short term working allowance. First of all, is this an allowance paid to the employers or directly …Read More »
Termination Processes for Short Term Work Allowance
As post-Covid-19 normalization takes place slowly in Turkey, certain companies are getting ready to resume operations or switch to working full-time. For those returning to normal work hours, they need to end short term work status. What procedures do they need to follow to end short term work? Should Employers …Read More »
How are Side Benefits such as Transport Expenses Taxed?
Employers can give workers additional monetary benefits besides the actual wage. These benefits can be payments such as sales premiums, bonuses paid to motivate the employee, as well as side benefits that cover the food and travel expenses during the employment. How will the travel expenses, which have been legally …Read More »
611 Additional Employment Incentive What are the Conditions to Benefit from 6111 Additional Employment Incentive?
In recent days, the Additional Employment Incentive brought by Law No. 6111 is on the radar of many employers and employer representatives. The employment incentive requires a deep understanding of legislation and follows laborious calculation processes and conditions to benefit. While a few changes have been made in the recent …Read More »
Exit Codes for the Ban of Work Termination
While discussing which exit codes are valid for the ban of work termination, the matter was clarified by İŞKUR’s internal communication. The ban of work termination, valid for 17 April until 17 July, was introduced with the provisional article 10 added to the Labor Law No. 4857. The exit codes …Read More »
If Short Term Work Allowance is Overpaid…
What happens if the short term work allowance is overpaid? It is expected to have audits on short term work allowance payments in the near future. During these audits, if overpayments are found, there will be further reviews on the source of the mistakes. If it is the employer who …Read More »