New Tax Brackets, Amounts, Limits, and 1% Withholding Tax on E-Commerce for 2025

Hoping that 2025 brings peace and abundant earnings :)

.

The minimum wage has been determined

While the public administration increased taxes and fees by 43%, it implemented a 30% increase in the minimum wage. According to the new regulation:

- Net Minimum Wage: 22,104.67 TRY/month

- Cost to the Employer: 30,621.48 TRY (with the 5-point deduction)

- SSI Base: 26,005.50 TRY/month (Gross minimum wage)

- SSI Ceiling: 195,041.40 TRY (7.5 times the gross minimum wage)

- Bağ-Kur Premium (Lowest): 7,735.98 TRY/month

.

2025 income tax brackets

In 2025, YouTube and internet earnings can be taxed via withholding up to 4,300 TRY; exceeding this amount requires establishing a company and issuing invoices

The annual income exemption amount for young entrepreneurs has also become 330,000 TRY

- Between 1 TRY and 158,000 TRY … 15%

- Between 158,000 TRY and 330,000 TRY … 20%

- Between 330,000 TRY and 800,000 TRY … 27%

- Between 800,000 TRY and 4,300,000 TRY … 35%

- Over 4,300,000 TRY … 40%

.

Determined Exemptions and Current Amounts

- Daily meal allowance exempt from tax: 240 TRY (excluding VAT)

- Meal allowance not subject to SSI: 158 TRY (if paid in cash or without the possibility of being used for other purposes instead of cash, the entire amount loaded onto the meal card/check/coupon is not subject to SSI)

- Daily commuting/transportation allowance exempt from tax: 126 TRY

- Monthly vehicle rental expense deduction limit: 37,000 TRY

- Vehicle Purchases * SCT and VAT: 990,000 TRY (Limit that can be expensed)

* Depreciation limit excluding SCT and VAT: 1,100,000 TRY

* Total depreciation: 2,100,000 TRY

- Invoice issuance lower limit: 9,900 TRY

- VAT withholding limit: 9,900 TRY

- Doubtful receivable expense limit: 20,000 TRY

- Special irregularity penalty: 28,000 TRY

- Mobile phone registration fee: 45,614.20 TRY

- Departure fee for abroad: 710 TRY

- Return stamp taxes:

* VAT/Withholding Tax Return: 443.70 TRY

* Corporate Income Tax: 1,663.80 TRY

- Motor Vehicle Tax (MTV): Lowest 4,834 TRY, highest 230,698 TRY

- Passport Fees: Between 2,359.40 TRY and 11,274.00 TRY

- SCT Increase on Fuel: 6%

.

Valuable housing tax base

- Between 1 TRY and 15,709,000 TRY … 0.3%

- Between 15,709,000 TRY and 31,421,000 TRY … 0.6%

- Over 31,421,000 TRY … 1%

.

Tax regulation on electronic commerce

A 1% withholding tax deduction has been introduced starting January 1, 2025, on sales made through marketplaces (intermediary service providers).

Deductions will be calculated over the price excluding VAT of the product/service, and refund procedures will be arranged accordingly.

Intermediary service providers will make the deduction and pay it on behalf of the seller via the withholding tax return at the end of the months.

Amounts such as commission fees, bank commission fees, cargo fees, and service fees will not be deducted from the withholding tax base

.

Dividend withholding tax increase

In the event that a fully taxpayer corporation (Joint Stock Company or Limited Liability Company) distributes profits to its shareholders, the profit-distributing company shall make a 15% withholding tax deduction over the amount to be distributed.

The application started on December 22, 2024.

.

SCT exemption in disabled vehicle purchases

- SCT exemption amount maximum 2,290,200 TRY

- Sales ban for 10 years

- Domestic production/local content ratio in the vehicle to be purchased must be at least 40%

.

Regulation regarding remote working duration in Technoparks extended until December 31, 2025

Remote working practice:

- IT personnel: 100% (No need to go to the Technopark),

- Other personnel: 75% (required to be present at the Technopark for approximately 1 week per month)

The practice is valid until December 31, 2025; unless there is another extension, all personnel will be required to work at the Technopark in 2026

.

Interest rate to be applied in advance and rediscount transactions

Annual interest rate to be applied starting from December 28, 2024:

- Advance transactions: 49.25% (Applied in current account / ADAT transactions)

- Rediscount transactions: 48.25%

.

Occupational Health and Safety (OHS) service procurement

- Companies with fewer than 50 employees and in the "less hazardous" class are required to procure OHS services in 2025. We expect a postponement regarding this issue, but it has not been published yet.

- Other companies (companies outside the above criteria) were included in the scope in previous periods.

The penalty to be applied to companies that do not procure OHS services despite being mandatory ranges from 77,002 TRY up to 4,620,120 TRY.

.

Briefly

- The revaluation rate was determined as 43.93%, and many tax and fee amounts for 2025 were increased at this rate

- The inventory ledger can be maintained electronically in 2025. We are awaiting the communique that will include explanations on this subject

- You can submit your National Vehicle Identification System (UTTS) applications until January 31, 2025

.