Recent Regulatory Developments - Happy New Year :)

Minimum wage determined

Gross 10,008.00 TRY, net 8,506.80 TRY. Employer cost is 11,759.40 TRY

The minimum wage has increased by 100% compared to the previous year

The minimum wage subsidy has been set at 250 TRY per month and will remain valid until the end of June 30, 2023

Administrative fines to be applied in 2023 for foreigners employed without a work permit have been updated

Employers employing foreigners without a work permit will be subject to an administrative fine of 35,815 TRY for each foreign employee

Additionally, minimum wage thresholds for foreign employment have been updated in line with the new minimum wage

For example, since the minimum wage threshold for senior executives and pilots is 6.5 times the minimum wage, it has become 65,052 TRY

Law No. 6111 SSI incentive extended until the end of 2023

The duration of benefiting from the Incentive for the Employment of Youth, Women, and Vocational Certificate Holders has been extended until December 31, 2023

For insured employees meeting the conditions specified in the law, employers will be granted a full exemption on the employer's share of social security premiums calculated over the wages of the newly hired insured personnel

Two of the conditions are: being unemployed in the 6-month period prior to the recruitment date and being employed in addition to the average number of insured employees

Example: For an employee within the scope of this incentive receiving a gross salary of 10,000 TRY, the benefit will be calculated as 10,000 TRY x 20.5% = 2,050 TRY

Recovery Contribution Fee (GEKAP) amounts for 2023 have been updated

Recovery contribution fee amounts have been re-determined, effective from January 1, 2023

VAT return filing and payment deadlines have changed

Starting from December 1, 2022, VAT returns can be filed and paid until the 28th day of the following month

VAT exemption extended until December 31, 2024

The application period for the VAT exemption on new machinery and equipment deliveries made exclusively for use in the manufacturing industry to VAT taxpayers holding an industrial registry certificate has been extended until December 31, 2024

Reduced withholding tax rates applied to deposit interest extended until June 30, 2023

Withholding tax rates of 5%, 3%, and 0% based on maturity will continue to be applied on TRY deposit interests and profit shares paid by participation banks in exchange for TRY participation accounts

The 0% withholding tax on interest derived from FX-Protected Time Deposit (KKM) accounts has also been extended until June 30, 2023

SDIF deposit guarantee increased to 400,000 TRY

General Health Insurance Premium Debts Prior to 2013 Have Been Erased

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The following subjects are not yet finalized; we will inform you as the relevant legislation is published

Remote working period in Technoparks is increasing

It is planned to increase the remote working ratio from 75% to 100% for IT personnel working in R&D/design centers and technoparks

Changes in 2023 income tax brackets

It is planned to raise the first bracket of the income tax tariff from 32 thousand liras to 70 thousand liras, the second bracket from 70 thousand liras to 150 thousand liras, the third bracket from 250 thousand liras to 550 thousand liras, and the fourth bracket from 880 thousand liras to 1.9 million liras

The meal allowance exemption amount is planned to be 110 liras, and the transportation allowance exemption amount is planned to be 56 liras

The EYT (retirement age-stuck) issue is being finalized

According to the President's statement on Wednesday, there will be no age limit for EYT.

In order to ease the burden on employers, KGF (Credit Guarantee Fund) loan support will be provided for severance pay

There will be social security premium support for retirees who continue to work, eliminating the premium difference between regular employees and retired employees

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As the Neura family, we wish you a happy new year :) With the hope that 2023 brings all the best things along with it