Minimum Wage, Omnibus Law, Technopark Remote Working, and Other Developments

- The 2024 minimum wage has been announced. According to the announcements, there will not be any additional increase to the minimum wage in 2024. The minimum wage support has also been increased from 500 TRY to 700 TRY. The intern allowance became 5,100 TRY, and the state support corresponding to this allowance became 3,400 TRY.

Minimum wage

January 2024

July 2023

January 2023

Net amount

17,002

11,402

8,506

Gross Amount

20,002

13,414

10,008

Cost to the employer

23,502

15,762

11,759

Bağkur premium - minimum

6,900

4,628

3,452

Bağkur premium - maximum

51,755

34,709

25,896

SSI ceiling

150,015

100,605

75,060

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- The omnibus law, which we previously informed you about, has been published in the Official Gazette and entered into force. Accordingly:

* The earnings exemption obtained from certain services provided to customers abroad, such as software, engineering, and medical reporting, has been increased from 50% to 80%. The sole condition is that the income must be brought to Turkey by the tax return submission period. This exemption is also valid for 2023 earnings.

* Half of the dividends obtained by real and legal persons from companies abroad in which they hold at least a 50% participation are exempt. The sole condition is that the income must be brought to Turkey by the tax return submission period.

* Earnings obtained by publishing videos such as education, cooking recipes, and product promotion provided in the internet environment from content shares other than social networks have been included in the scope of exemption.

* The 0.5% lump-sum expense practice applied in exports has been abolished.

* A 5-point corporate tax discount has been introduced for earnings derived from manufacturing activities.

* The VAT 2 return payment date has been brought forward (declaration on the 21st, payment on the 23rd day). Paid VAT 2 amounts can be deducted from the VAT 1 return, whereas unpaid amounts cannot be deducted.

* The earnings exemption regarding FX-protected accounts (KKM) has been extended until June 30, 2024.

* The Banking and Insurance Transactions Tax (BSMV) exemption in housing loans will only apply to the acquisition of the first residence.

* Seizure records for public receivables can now be executed electronically.

* Fees applied at ports have been increased.

* In sectors where corporate tax payable will decrease due to inflation accounting (banks, insurance, electronic money institutions, authorized foreign exchange businesses, etc.), inflation adjustment differences will not be taken into account in tax calculations.

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- Taxes levied on games of chance have been halved. As of January 1, 2024, the new rates are as follows:

* 5% on mutual betting based on sports competitions

* 7% on horse racing

* 10% on other games of chance

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- The Technopark remote working practice has been extended until the end of 2024. While working within the Technopark was mandatory under the project, this situation was relaxed with the impact of the pandemic, transitioning to a 100% (for IT personnel) and 75% (for others) remote working practice. In other words, even if employees never go to the Technopark, they can benefit from the income tax exemption on their wages. This practice was valid until December 31, 2023, and with the new regulation, it has been extended until December 31, 2024.

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- The practice of appointing an occupational safety specialist and workplace physician has been postponed to December 31, 2024, for workplaces with fewer than 50 employees and classified in the low-risk class.

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- The rediscount interest rate (which we use for calculating ADAT) has become 41.75%. In 2023, the Central Bank increased the rediscount interest rate for the 5th time.

Date …………….. Rate %

June 24, 2023 ……. 16.75

September 1, 2023 ……. 26.75

September 28, 2023 ……. 31.75

November 1, 2023 ……. 36.75

December 1, 2023 ……. 41.75

December 23, 2023 ……. 44.25

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In brief – Effective as of January 1, 2024

- The minimum capital requirement will be 250,000 TRY for joint-stock companies and 50,000 TRY for limited liability companies.

- Eateries, restaurants, cafes, and patisseries are required to place price lists at their entrance doors and on tables.

- Banks will request an independent audit report for loans of 5,000,000 TRY and above to be granted.

- The use of the Construction Reinforcing Steel Tracking System (İDİS) is launching.

- The obligation for transporters to transmit UETDS data is launching.

- Obligations and restrictions regarding the short-term rental of residences (AirBnb) are launching.

- Valuable paper fees such as identity cards, driver's licenses, and passports have been redetermined for 2024.

- Bookkeeping and class-change thresholds based on the operating-account basis and balance-sheet basis have been redetermined.

- Recovery Contribution Share (GEKAP) amounts have been redetermined.

- Individuals with SSI premium debts will be able to benefit from healthcare services. Even if they have premium debts for more than 60 days, they will be able to benefit from healthcare assistance until the end of December 31, 2024.

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On this occasion, as the Neura family, we celebrate the new year of you and all your loved ones :)

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