Income Tax Brackets, Daily Meal Allowance, Passenger Car Expenses, and Severance Pay

- The income tax brackets for the year 2024 have been determined:

Up to 110,000 TL … 15%

Between 110,000 TL and 230,000 TL … 20%

Between 230,000 TL and 870,000 TL … 27%

Between 870,000 TL and 3,000,000 TL … 35%

Over 3,000,000 TL … 40%

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- Based on these tax brackets, the following thresholds have been updated:

* Individuals with employment income exceeding 3 million TL in 2024 will file an annual income tax return at the end of the year.

* Individuals generating social media revenues whose income under this scope exceeds 3 million TL in 2024 will establish a company, issue invoices for their revenues, and pay the relevant taxes. If tax has been withheld at source during the year, this tax will be credited.

* The young entrepreneur tax exemption has been set at 230,000 TL for the year 2024.

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- In 2024, regarding the daily meal allowance;

* An amount up to 170 TL (187 TL including VAT - Multinet, Sodexo, etc.) is exempt from income tax, and the exceeding portion is subject to income tax.

* 157.69 TL is exempt from SSI (Social Security Institution) premiums, and the exceeding portion is subject to SSI.

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- In 2024, the portion of the daily transportation allowance up to 88 TL is exempt from income tax. Supporting documents for this expense must be retained strictly.

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- The restriction thresholds regarding passenger car expenses have been updated:

Description

Year 2024

Year 2023

Car rental (monthly)

26,000

17,000

Maximum VAT and SCT amount that can be expensed upon the acquisition of passenger cars

690,000

440,000

Depreciation over the amount excluding VAT and SCT

790,000

500,000

Depreciation over the total amount by adding VAT and SCT to the cost of the car

1,500,000

950,000

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- The severance pay ceiling has been determined as … 35,058.58 TL.

- The minor asset (petty equipment) limit has become 6,900 TL excluding VAT. Amounts below this threshold can be directly expensed.

- The invoice issuance threshold has become 6,900 TL excluding VAT. Cash register receipts (retail sales receipts) can be issued below this amount. Issuing an invoice is mandatory above this threshold.

- The penalty for failing to maintain the employee personnel file has become 14,740 TL. It is highly recommended to keep your employees' personnel files completely. You can request support from us regarding which documents need to be obtained and retained.

- The rental increase rate to be applied to workplaces for January has been announced as 53.86% (12-month average of CPI). The maximum increase that can be applied to residences is 25%, and this limit will remain in effect until July 1, 2024.

- Regulations have been made for Form Ba and Form Bs. Declarations for rent, insurance policies, insurance commission expense documents, and import-related documents are no longer required.

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In Brief

- VAT-2 returns will be filed by the evening of the 21st day of the month and paid by the evening of the 23rd. Unpaid amounts cannot be utilized as a deduction in VAT-1 returns. The first application will start with the January 2024 VAT-2 return.

- For loans of 5 million TL and above granted by banks, an "account status certificate" containing financial positions will be required from a Certified Public Accountant or auditor.

- Companies exceeding 50 employees are required to register with VERBIS (Data Controllers Registry Information System) by the end of January.

- Remote work in Technoparks has been extended until the end of 2024.

- Investment obligations within the scope of exempt earnings in Technoparks have been increased.

- The minimum wage has become a net of 17,002 TL.

- Penalties related to employing foreign nationals have been increased. The penalty for workplaces employing unauthorized foreign nationals has become 56,752 TL per employee.

- The use of new generation cash registers has become mandatory. The deadline is June 30, 2024.

- The minimum capital for Limited Liability Companies has become 50 thousand TL, and for Joint Stock Companies 250 thousand TL.

- Individuals with Bağkur (Social Security for Artisans and Self-Employed) insurance debts will be able to benefit from healthcare assistance until December 31, 2024.

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