Current Legislative Developments

2023 New Tax Brackets

Tax Bracket

Rate

Up to 70,000 TRY

15%

10,500 TRY for 70,000 TRY of 150,000 TRY, and the excess

20%

26,500 TRY for 150,000 TRY of 370,000 TRY (26,500 TRY for 150,000 TRY of 550,000 TRY for wage income), and the excess

27%

85,900 TRY for 370,000 TRY of 1,900,000 TRY, (134,500 TRY for 550,000 TRY of 1,900,000 TRY for wage income), and the excess

35%

621,400 TRY for 1,900,000 TRY of the portion exceeding 1,900,000 TRY, (607,000 TRY for 1,900,000 TRY of the portion exceeding 1,900,000 TRY for wage income), and the excess

40%

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2023 Severance Pay Ceiling Determined

The amount determined at the beginning of the year was subsequently revised. The current severance pay ceiling is 19,982.83 TRY

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New Limits Regarding Vehicle Expenses (Excess Amounts Will Be Treated as Non-Deductible Expenses - KKEG)

Vehicle rental (monthly) … 17,000 TRY

SCT and VAT that can be expensed for new vehicle purchases … 440,000 TRY

Can be expensed via depreciation

Excluding SCT and VAT … 500,000 TRY

Total SCT and VAT … 950,000 TRY

For other vehicle expenses (fuel, maintenance, HGS tolls, parking, etc.) … 70% is deductible, 30% is non-deductible (KKEG)

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2023 Meal Allowances (Cash or Card (Excluding VAT))

Up to 78.90 TRY ... Exempt from tax and social security contributions (SGK)

Between 78.90 TRY and 110 TRY ... Tax-exempt, subject to social security contributions (SGK)

Above 110 TRY ... Both tax and social security contributions (SGK) will be calculated

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Mandatory Payment of Salaries via Banking Channels

Payments exceeding 7,000 TRY are mandatory via banking channels

With the minimum wage set at 8,500 TRY, all salary payments will be required to be made through the bank

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Social Security Institution (SGK) Legislative Amendment

The monthly minimum wage support has become 400 TRY

The lowest SGK and Bağ-Kur retirement pensions have become 5,500 TRY

SGK and Bağ-Kur pensions were increased by 30% as of January 1

Unemployment benefits will range between 4,003.20 TRY and 8,006.40 TRY. Unemployment benefit is 40% of the average gross salary of the last 4 months

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Cash Capital Interest Deduction

The cash capital increase interest deduction for the year 2022 will be calculated based on 13.47%

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Foreign Currency Conversion Support

Within this scope, during the sale of foreign-sourced foreign currencies of companies to the CBRT, companies will be able to receive foreign currency conversion support equal to 2% of the amount converted into Turkish liras, in exchange for the commitments they will provide.

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2023 Trainee Incentive

Businesses employing fewer than 20 personnel .. 1,701.20 TRY (in case the trainee works for 30 days)

Businesses employing more than 20 personnel .. 850.60 TRY (in case the trainee works for 30 days)

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Other Developments

- TRT banderol fees have started to be levied on computers, tablets, and watches

- Collateral has started to be required from motor vehicle traders

- After April 1, 2023, all companies and self-employed professionals will be required to have POS devices in their workplaces

- The 2023 paid military service fee became 104,084.16 TRY

- The VAT exemption on the purchase of machinery and equipment to be used in production for businesses holding an Industrial Registry Certificate has been extended until the end of 2024

- Additional financial statement thresholds have been re-determined

- Public oversight (independent audit) standards and thresholds have been announced

- Inheritance and transfer tax amounts have been updated

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