On July 20, 2025, with the amendment made to Law No. 5746 on Supporting Research, Development and Design Activities and Law No. 4691 on Technology Development Zones, the amounts to be cancelled (through offset) from wages under the income tax withholding incentive, as well as the stamp tax exemption amount, have been limited to "forty times the gross minimum wage.".

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With the amendment made on July 20, 2025 to Law No. 5746 on the Support of Research, Development and Design Activities and Law No. 4691 on Technology Development Zones, the amounts to be deducted from wages within the scope of the income tax withholding incentive, as well as the stamp tax exemption amount, have been limited to "forty times the gross minimum wage."

You may access our publication on the subject here.

The Revenue Administration has issued a ruling (February 25, 2025 dated ve 15584 numbered) on the treatment of tax deductions when employers are notified of private health insurance payments after the specified time frame.

The following points are summarised in this matter:

• A private health insurance policy is in effect from October 14, 2023 to October 14, 2024.
• Policy premiums are paid on time in instalments.
• Payment documents/receipts were not submitted to the employer in the months of payment but were instead provided later, in July 2024.
• The issue in question is whether the private health insurance premiums paid for the previous period can be deducted from income tax as of July 2024.

With the Law No. 7555 on the Protection of the Value of the Turkish Currency and Amendments to Certain Laws and Decree Law No. 635, published in the Official Gazette dated July 24, 2025, various regulations have been amended, including notably the Labor Law No. 4857, the Law No. 5746 on Supporting Research, Development and Design Activities, and the Law No. 4691 on Technology Development Zones.

Among the key changes, the amendment establishes new principles for calculating income tax withholding incentives for design and support employee working in R&D, design, and technology development zones. It also introduces new procedures for written and electronic notifications under the labour law.