The headcount reported in monthly SSI premium declarations and in withholding tax returns is subject to cross-check by the state auditors. Therefore, inconsistencies between these declarations pose a risk.

It has been noted that state auditors have been forwarding random audit reports to related SSI Offices and seeking information from companies based on the cross-checked results.

This is a fairly recent practice given that inconsistencies between headcount reports in withholding tax and SSI declarations were not scrutinized before.

 A communiqué regarding the social security insurance of domestic service workers within the scope of supplementary article 8 of the law on Social Security enumerated 5510 has been published and is in effect as of 01/04/2015. Domestic service work comprises domestic help such as cleaning, cooking, child as well as elderly care.


Domestic service workers are now categorized according to the days worked in a calendar month, threshold being 10 days. Accordingly, employers who employ domestic service workers 10 days or more are obliged to contribute the full SSI amount.

A tax deduction³ for the paid portion of the increased capital to be calculated by the legally applicable interest rate.⁴ In the event where no profit is declared for the year in question, the tax deduction can be carried over to the subsequent tax year.

 

For companies who are considering a capital increase, it is recommended that they calculate the advantages to be gained with the new regulation.

 

Click here for the recent regulation⁵ (available only in Turkish) and contact your account representative for detailed information on the subject.

 

References:

www.tbmm.gov.tr

Law no : 6637 Date : 27/03/2015 Law amending certain laws and enactments.