Daily Indemnity

The terms Travel Allowance and Daily Indemnity are usually mixed in our legislation. There are significant differences between them, besides, it is known that the social security premiums are deducted from the travel allowance whereas the daily indemnities are not questioned in social security premiums. Please see below the related articles of Mr.Resul Kurt and  Mr.Mehmet Maç.

As it can be referred from being involved in the 24th article about the indiscriminatenesses of the social security commission, mainly the daily indemnities are not an allowance for the employees but an expense for business. However, on the condition that the indemnities are paid as a lump sum under the name of daily indemnity rather than promoted real travel expenses and that they are economized by the employee, they can be considered as benefit and allowance. The amounts that exceed the legal limits are subject to the taxed wage payment.

On the Official Gazette numbered 30534 dated 13.9.2018, it has been announced with the Presidential Decree numbered 85 to make amendments on the recently announced Decree Law numbered 32 “The Protection of the Turkish Currency”.

According to the newly announced Decree, the below shall be applicable starting as of 13/9/2018:

• It is prohibited to have foreign currency-based contracts or contracts with foreign currency payment duties for the parties which are located within the borders of Türkiye in relation to all types of property and real estate purchase, sale and lease agreements, vehicle purchase / sale and lease agreements, service, employment and similar agreements. The clause is applicable to all local parties in Türkiye unless the party is announced to have certain exception by the relevant authority.
• As of the date this Law is in force (Sept, 13), within 30 days all the rates, values, prices which are to be agreed on foreign currency, shall be adjusted with Turkish currency (TRY) fees. The clause is applicable to all local parties in Türkiye, unless the party is announced to have certain exception by the relevant authority.

The Law numbered 7099 on Amendments to Certain Laws with the Intention to Improve the Investment Environment entered into force upon its publication in the 30356 numbered Official Gazette dated 10 March 2018. The Law numbered 7099 is intended to improve processes in the amended areas along with the reduction of expenses which are paid in this respect.

With the expansion in the usage area of electronic legder and electronic invoice through the Tax Procedural Law General Notification published on 20th June 2015, we point out to the subjects of which taxpayers have obligations within this context and the points to consider.

According to the notification, the taxpayers, who have gross sales revenue amounting to 10 Million TL and above within 2014 and its following years, are obligated to change over to electronic ledger and electronic invoice application as of 1st of January 2016. According to the notification, summarize; the taxpayers who obtained license from EPDK (Energy Market Regulatory Authority) due to the commodities stated in the List Number I annexed to the ÖTV Law (Special Consumption Tax) and the taxpayers, that manufacture, construct and import the products stated in the List Number III annexed to the ÖTV Law, are obligated to change over to e-ledger and e-invoice application.