It is projected with the “Legislation Proposal Projected to Amend the Income Tax Law and Certain Laws and Decrees” submitted to the Turkish Grand National Assembly on 07.10.2022, to make regulations in order to establish a legal basis for tax and other financial matters.

As Günbay Kural Abbasoğlu Law Firm, we would like to inform our clients regarding the future practices by examining the employment and Labour Law related regulations within the scope of legislative proposal prior to coming into force.

You may find below the important tax and financial regulations stipulated by the legislation proposal.

• Food allowances, not exceeding a certain amount per day, paid to the employees are directly included within the scope of income tax exemption, regardless of the purpose of use.

It is stipulated with the regulation that    the relevant exemption will also be used in case the food allowance payments are deposited into the bank account of the employees and these amounts are used by the employees outside of the businesses that provide catering services.

*Although it is not currently within the scope of the relevant article, in line with the information we have obtained, it is expected that a regulation requiring the deposit of the relevant amount to a state bank account in order to benefit from the exception in case the food allowances of the employees are deposited into the bank accounts will be included within the scope of the legislation proposal.

• It is stipulated that up to 1,000 TRY of benefits to be provided to the employees for electricity, natural gas and heating costs will be exempted from income tax and SSI premium.

• It is stipulated that the wages of those working in construction, repair, assembly and technical services abroad will be exempt from tax.

• While the short-time working allowance paid due to Covid-19 and cash transaction support payments not been collected from the excess and undue payments resulting from faulty transactions will be canceled, it is also stipulated that the excess and undue payments arising from the employment of employees by the employers during the short-time working period will be excluded from the scope of the relevant article.

In case you request more information, you may contact Günbay Kural Abbasoğlu Law Firm lawyers.