Wednesday, March 16, 2022

In case the wage income received from a single employer and taxed through deduction in 2021 exceeds the amount in the fourth income bracket of the Turkish income tax tariff (650.000 TL for 2021), it will have to be declared to the tax office with its annual declaration in Turkey. If the wage income does not exceed the amount in the fourth income bracket of the tax tariff (650,000 TL for 2021), an annual return will not be submitted.
These incomes will not be included in the return.

An annual statement will be submitted for undeducted wage incomes, regardless of the amount.

In case wage incomes are included in the annual declaration, the amount of income tax deducted from the wage paid during the year before deducting the minimum living allowance will be deducted from the tax calculated on the declared income.

Employees who earn taxed wage income through deduction from a single employer and whose wages exceed 650,000 TL (the amount in the fourth income bracket of the income tax tariff written in Article 103 of the Turkish Income Tax Law),

Among the wage earners who earn taxed wage income through deduction from more than one employer, the wages received from the next employer exceed 53,000 TL (the amount in the second income bracket of the tariff written in Article 103 of the Turkish Income Tax Law),

The wage earners who earn taxed wage income through deduction from more than one employer, the total wages they receive, including the wage income from the first employer, exceed 650,000 TL (the amount in the fourth income segment of the tariff written in Article 103 of the Turkish Income Tax Law),

Athletes whose total wage income subject to withholding exceeds the amount in the fourth tranche of the tax tariff (650.000 TL for the year 2021)

Wage incomes subject to withholding are included in the fourth tranche of the tax schedule.
Professional sportsmen who receive wages from more than one employer and the sum of the wages received from the next employer exceeds 53.000 TL (the amount included in the second income bracket of the tariff written in Article 103 of the Income Tax Law). sports referees who manage competitions in the top leagues of basketball and volleyball sports,

Employees who receive their wages directly from an employer in a foreign country (excluding those within the scope of exception),

Foreign embassy and consulate officers and employees who do not benefit from the exemption,

An annual declaration by the Ministry of Treasury and Finance those who have paid the necessary fees,

The wage earners other than those listed above whose wages are not taxed by deduction.

On the other hand, non-resident real persons shall not submit annual declarations for their wage incomes, all of which are taxed with withholding in Turkey, and if they submit a declaration for their other incomes, they shall not include this income in the declaration.

The tax base found after deducting the disability allowance in Article 31 of the Income Tax Law over the real net amount found after the deductions in Article 63 of the Turkish Income Tax Law are made from the gross wage amount. According to the article, it must be taken into account in determining whether the wage income exceeds the declaration limit.

According to the explanation made above, an example of the wage income obtained in 2021 is given below.

Salary from the first employer (Gross wage) 100.000 TRY
Salary from second employer (Gross wage)  82.000 TRY
Salary from third employer (Gross wage) 60.000 TRY
Fees total 242.000 TRY
Discount amount for second degree handicapped (860x 12 months)  10.320 TRY

In the event that the Taxpayer chooses the employer for which he receives a wage of 100.000 TL as the first employer, in comparison of the total wages received from other employers with the tax return limit of 53,000 TL for 2021, one of the gross wages of the GVK 63/2. Insurance deduction will be made by applying a rate of 15%, which is the sum of 14% insurance premium and 1% unemployment insurance premium.

In addition, according to Article 31 of the Income Tax Law, the annual disability allowance must be deducted from the gross wage.

(82.000 – 12.300) = 69.700 TRY
(60.000 – 9.000 ) = 51.000 TRY
Disability allowance amount = (860 X 12) 10.320 TRY
69.700 + 51.000 = 120.700 – 10.320 = 110.380 TRY

Accordingly, since the total wage received from the next employers exceeds the wage declaration limit of 110,380 TRY, which is 53,000 TRY, she will declare 242,000 TRY, including the wage she received from the first employer.

 

 

Kaynak: TURMOB Guidebook of 2021 about income tax declaration
Disclaimer: The information in this article is provided for general information purposes only. It is not intended for a professional informational purpose specific to a person or institution. Although it is similar to the subject, each business may have different situations due to its own special conditions. For this reason, it is in your best interest to consult an expert before taking any decision that will affect your business based on the information provided in this article. Karen Audit or any of the persons or institutions it is associated with is not responsible for any loss or damage that may arise as a result of the use of the information contained in this document by private or official, real or legal persons, institutions and organizations.