According to the circular numbered 27998389-010-06-02-138 released by the General Directorate of Budget and Fiscal Control on 04.01.2018 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective 01.01.2018.

A) Income Tax Exempted Severance Pay

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.08.2018 – 30.06.2018 maximum severance pay to be exempted from income tax is 5.001,76.- TL,

• Income Tax Exempted Food Allowance
• Disablement Degree Discount
• Income Tax Brackets of 2018
• Stamp Tax Rate

By virtue of the procedures and principles explained in the General Communique with the serial number 486 of the Tax Procedure Law, Self-Employment Income Ledgers will no longer be kept in hard-copy form and starting as of 01.01.2018. These ledgers will be kept electronically on the internet system of the Directorate of Revenue Administration by the “Ledger Declaration” method.

The details of the tax reduction to be applied to taxpayers who are compliant with their tax duty have been clarified by virtue of the Income Tax General Communique Numbered 301 published in the Official Gazette No 30279 dated December 23, 2017.

The stipulated arrangement allows the taxpayers of annual income tax as well as the taxpayers of corporate tax, except for those operating in finance and banking sectors, insurance and reinsurance companies, pension companies and pension investment funds, to deduct 5% of the taxes calculated on the basis of their income or corporate tax returns, from their income or corporate taxes required to be paid.