Definition of wage exists in a variety of relevant Turkish laws and regulations. Article 32 of Turkish labor law defines wage as; “Wage is, in general terms, the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him.” More [...]

In accordance with article 32 of Turkish Labor Law, there are three components of wage; (1) Wage should be paid in return for performed work, (2) wage should be paid by an employer or by a third party, (3) wage should be paid in cash. For the purpose of law no: 193 on Income Tax, [...]

All payments, which are treated as wage under Income tax law, are subject to the income tax. As per article 61 of Turkish income tax law (law no. 193) in addition to wage, all other associated income such as allowances, bonuses, anniversary gifts, gratuities, commissions, premiums, compensations and other wage and salary related remunerations including [...]

Effective from January 1, 2008, a tax-free minimum living allowance is available for wage earners. Income tax payable (taxable income) is calculated after deducting MLA from the income tax. The calculation is made on the basis of minimum wage regardless of the wage of the employee. In the calculation of the minimum living allowance, the [...]

The employee who lost working capacity at minimum 80 % is regarded as 1st degree disabled, minimum 60 % is 2nd degree disabled, minimum 40 % is 3rd-degree disabled worker. In calculating income tax, the following monthly deductions are applicable to the taxable income of the employees

TAX EXEMPTION REGARDING THE WAGES PAID BY EMPLOYERS WITH LIMITED TAX LIABILITY[1] In accordance with article 3(2) of Corporate Income Tax law numbered 5520[2], Corporations[3] have a limited tax liability for income deriving from Turkey if neither their registered office nor their business center is within Turkey. Full liability taxpayer corporations are subject to corporation tax on [...]