Practical Information

Upper & Lower Limits

The upper limit for drawing up of retail sales slips or payment recording device voucher (between 01.01.2022-31.12.2022) – 2.000,00 TRL

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MINIMUM WAGE TOTALS (01.01.2022)
Gross Total – 5.004,00 TRL

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EMPLOYER’S COST OF MINIMUM WAGE (01.01.2022)

6.129,90 TRL (With the 5% Social Security Institute employer premium incentive: 5.879,70 TRL)

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LIMITS TAKEN AS BASIS IN THE CALCULATION OF THE SOCIAL SECURITY PREMIUM (year 2022)

Upper Limit (As of 01.01.2022-31.12.2022) – 37.530,00 TRL

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Lower Limit (As of 01.01.2022-31.12.2022) – 5.004,00 TRL

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UNEMPLOYMENT SOCIAL SECURITY PREMIUM TOTALS

(Between 01.01.2022-31.12.2022)

Employee Contribution – 1 %

Employer Contribution – 2 %

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MEAL ALLOWANCE EXEMPTED FROM INCOME TAX/DAILY
As of 01.01.2022 (Excluding VAT) – 34,00 TRL

Witholding tax

Rental fees paid to individuals by entities	20%
Multi-year construction and repair works and progress payments	5%
Freelance consultancy (Independent professional ser.)	20%

Salary (between 01.01.2022-31.12.2022)

Up to TRL 32.000	15%
Between 32.001 up to 70.000 for the first TRL 32.000, TRL 4.800, for above	20%
Between 70.001 up to 170.000 for the first TRL 70.000, TRL 12.400, for above	27%
Between 170.001 up to 880.000 for the first TRL 170.000, TRL 39.400, for above	35%
For more than TRL 880.000: for the first TRL 880.000, TRL 287.900, for above	40%

VAT & CORPORATE TAX

Stamp Duty Rates

STAMP DUTY RATES TO BE LEVIED OVER DOCUMENTS RELATING TO CERTAIN TRANSACTIONS (2022)


On Wages	7,59 ‰
On Rent Contracts	1,89 ‰
(Over the rental fee to be determined according to the contract period)
On Contracts	9,48 ‰
The maximum stamp tax amount for each contract	4.814.234,00 TRL

Balance Sheets	102,00 TRL
Profit/Loss Statements	48,70 TRL
Annual Income Tax Returns	132,30 TRL
Corporate Tax Returns	176,70 TRL
Stamp Tax of the VAT Tax Returns	87,30 TRL
Stamp Tax of the Withholding Tax Returns	103,50 TRL

Severance

According to Article 14 of Turkish Labor Law 1475; If the employment contract of an employee is terminated after at least one year by the employer, employer should pay the employee severance payment. Calculation of severance pay shall be made based on the latest wage drawn. However the annual ceiling for severance payment is 12.976,38 TL as of 01.07.2022.

Only stamp tax (0.0759) is calculated from the severance pay. Income tax and social security contributions are not calculated and deducted from the payment as long as the payment is less than the ceiling amount. If the payment is higher than the ceiling amount then the income tax shall be paid over the ceiling amount.

Example:

Gross Salary: 15,000 TL monthly salary

Starting date: 12.02.2009

Leaving Date: 31.01.2020

Working period: 10 year 11 months 26 days (4,005 days)

Since the gross salary is upper than the ceiling, we have to take 12,976,38 TL as base.

Calculation:

12.976,38 TL/365*4.005 days = 142.384,66 (gross severance)

142.384,66 * 0.00759 = 1.080,70 TL stamp tax

142.384,66 – 1.080,70 = 141.303,96 TL Net payment

Notification

Pursuant to article 17 of the Turkish Individual Labor Act(4857), both the employee and employer are entitled to terminate employment contracts for an indefinite period by observing the following minimum notification periods, depending upon the length of service of the employee.


Length of Service	Notice Period
Less than 6 months	2 weeks
6-18 months	4 weeks
18 months-3 years	6 weeks
More than 3 years	8 weeks

Stamp tax and income tax is calculated for notification payment. Social security is not calculated for notification.

Annual Leave Days

Employees, who have completed a minimum of one year of service in the establishment since their recruitment, including the trial period, shall be allowed to take annual leave with pay.

The right to annual leave with pay shall not be waived.

The provisions of this Act on annual leave with pay are not applicable to employees engaged in seasonal or other occupations which, owing to their nature, last less than one year.

The length of the employee’s annual leave with pay shall not be less than;

fourteen days if his length of service is between one and five years, (five included),
twenty days if it is more than five and less than fifteen years,
twenty-six days if it is fifteen years and more (fifteen included).

For employees below the age of eighteen and above the age of fifty, the length of annual leave with pay must not be less than twenty days.

The length of annual leave with pay may be increased by employment contracts and collective agreements.

This publication has been prepared for informational purposes only. None of information contained in this publication shall constitute legal, tax, accounting advice.

Reduced Rate (List No I dried foods, cotton, wheat, agricultural products etc.)	1%
Reduced Rate (List No II food, hotel etc.)	8%
General Rate ( Services, Oil & Gas etc.)	18%
CORPORATE TAX	23%