Turkish Labor Law
The income tax withheld from the employees’ earnings, which employees are required to pay, may also be subject to declaration, in addition to being deducted from the payroll every month. The tax return declarations, which should be submitted during the month of March following each taxation period, will be filled out online through the “Hazir Beyan” (Ready Declaration) system on the website of the Revenue Administration.
Who Should Submit a Declaration?
- Income that is not subject to income tax withholding during the payment period and not covered by the exemption.
- Total amount of income tax withheld from the income paid exceeding 880,000 TL for the year 2022.
- Total amount of income received from more than one employer and subject to income tax withholding, falling under the second tax bracket (for the year 2022, 70,000 TL).
Transfer of Cumulative Income Tax Base
Employees who change their workplace during the year and start working for different employers can optionally transfer their cumulative income tax base to their new workplace. However, continuing the cumulative income tax base with the new employer does not eliminate the obligation to submit a declaration.
Deductions that can be used in the declaration
When filling out the declaration, the following deductions can be reported, and it is also possible to receive a tax refund thanks to these deductions.
- Personal Insurance Premiums
- Education and Health Expenses
- Donations
- Donations to Educational and Health Facilities and Religious Facilities
- Donations within the Scope of Food Banking
- Donations for Cultural and Tourism Purposes
- Sponsorship Expenses
- Donations Made to the Aid Campaigns Initiated by the President of Turkey
- Cash Donations to the Turkish Red Crescent and the Turkish Green Crescent Society
- Donations Made to the Kapadokya Area Presidency and Sponsorship Expenses
Other donations and assistance that can be fully deducted according to other laws;
- All cash donations made to the fund established under the Law No. 7269 for measures to be taken due to disasters that affect the public and to the national aid committees or local aid committees for the cash donations made with a receipt.
- Cash and in-kind donations made with a receipt to universities and the High Technology Institute (Yüksek Öğretim Enstitusu), according to the Higher Education Law and to foundation universities.
- Donations made according to the Social Assistance and Solidarity Promotion Law.
- Cash donations made according to the Law on the Establishment of the Turkish Scientific and Technical Research Institution.
- Cash and in-kind donations made according to the Social Services and Child Protection Institution Law.
- Cash and in-kind donations made according to the Atatürk Culture, Language, and History High Institution Law.
- Cash and in-kind donations made according to the Turkish Armed Forces Strengthening Foundation Law.
- Cash and in-kind donations made according to the National Afforestation and Erosion Control Mobilization Law.
- Cash donations made to primary schools according to Article 76 of the Primary Education and Training Law.
Example 1:
Let’s assume that the income from the first employer is 600,000 ₺, and the income from the second employer is 60,000 ₺. The total earned income will be 600,000 + 60,000 = 660,000 ₺.
Since the total amount does not exceed the fifth tax bracket for 2022, which is 880,000 ₺, and the income from the second employer falls below the second tax bracket (70,000 ₺ for 2022), there is no need to submit a tax return.
Example 2:
Let’s assume that the income from the first employer is 300,000 ₺, and the income from the second employer is 90,000 ₺. The total earned income will be 300,000 + 90,000 = 390,000 ₺.
Although the total amount is below the fifth tax bracket for 2022, which is 880,000 ₺, since the income from the second employer exceeds the second tax bracket (70,000 ₺ for 2022), a tax return must be submitted.
