Some summary information about some updates on tax legislation, exception limits, minimum wage etc. of the year 2024

While we are starting to the new year 2024, I would like to share some summary information about some updates on tax legislation, exception limits, minimum wage etc.

•         The minimum gross wage has been determined as 20.002,50TL for the period of 01.01.2024 -31.12.2024. The net minimum wage amount is 17.002,12TL, and the total cost of the employee with minimum wage is 23.502,94TL for the employer (incase the 5% incentive is applied for regular payments).

•      While the maximum rate of increase for residential lease agreements which will be renewed until 1st of July 2024 was determined as 25%, for workplace lease agreements to be renewed in January 2024, was determined as 53,86%, based on the twelve-month average in CPI announced by Turkish Statistical Institute.

·        The inflation rate for the 2023 was announced by TÜİK as 64,77%

•      A revaluation rate for the year 2023 has been determined as 58,46%, and this rate will be taken into consideration for the increase of 2024 taxes.

•           The Corporate Tax Rate to be applied in the year 2024 is 25% (in case there will be no any update on the rate). This rate was also applied as 25% in the year 2023.

•      In cases where meals are not served to the employee at employer's workplace or outside of workplace, the income tax exemption amount for the employee's daily meal for the days worked has been determined as 170TL(187TL including VAT). The amount of food allowance that will be exempt from earnings subject to Social Security Premium is 157,69TL per day actually worked.

•      Benefits provided by means of transportation of employee for returning to and leaving from the workplace, income tax exemption amount has been determined as 88TL per day(provided that this benefit will be paid by public transport card, ticket etc.)

·       Disability allowance amounts have been determined as 6.900 TL for first degree disabled people, 4.000 TL for second degree disabled people and 1.700 TL for third degree disabled people for the year 2024.

•      Fixed asset, depreciation allocation limit and invoice issuance limit are determined as 6.900 TL excluding VAT.

•      For the year 2024, rental income from residences will be exempted from the income tax provided that the income amount does not exceed 33.000 TL. If this amount is not exceeded, tax declaration will not be submitted.

•      For the year 2024, up to 26.000 TL of the monthly rental price of each rented passenger car can be recorded as cost.

•           Up to a maximum of 690.000 TL of the sum of Special Consumption Tax and VAT on the purchase of passenger cars can be recorded as cost.

•      In the year 2024, the amount that can be deducted as depreciation for passenger cars has been determined as 790.000TL excluding Special Consumption Tax and VAT, and in cases that the said taxes are added to the cost price or when passenger car is acquired as second hand, maximum 1.500.000TL can be recorded as cost.

·        The income tax tariff has been determined as follows to be taken as a basis in the taxation of the incomes of the 2024 calendar year.

1st Tax Bracket 15%- Income Base: 0 – 110.000TL

2ndTax Bracket 20%- Income Base: 110.000TL-230.000TL

3rd Tax Bracket 27%- Income Base: 580.000TL-230.000TL (For wage income 230.000TL-870.000TL)

4thTax Bracket 35%-  Income Base: 3.000.000TL-580.000TL (For wage income 870.000TL-3.000.000TL)

5thTax Bracket 40%- Income Base: 3.000.000TL and more

 

KIVANÇ ÖZBENLİ

Certified Public Accountant & Independent Auditor