05January2017

INCOME TAX EXEMPTED SEVERANCE PAY

a. Income Tax Exempted Severance Pay

According to the circular numbered 27998389-010-06-02-66 released by the General Directorate of Budget and Fiscal Control on 03.01.2017 with the subject 'Financial and Social Rights', the coefficients used to calculate the wage of a civil servant have been revised effective 01.01.2017.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.01.2017 – 30.06.2017;

  1. Maximum severance pay to be exempted from income tax is 4.426,16.- TL,

b. Income Tax Exempted Child Support

According to the circular numbered 27998389-010-06-02-66 released by the General Directorate of Budget and Fiscal Control on 03.01.2017 with the subject 'Financial and Social Rights', the coefficients used to calculate the wage of a civil servant have been revised effective 01.01.2017.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.01.2017– 30.06.2017;

  1. Monthly child support to be exempted from income tax is;
    • For children 0-6 years of age – 48,03.- TL,
    • For children over 6 years of age – 24,01.- TL.

To access the full circular in which these announcements were made, please click here. Please also be advised that the contents of this circular is in Turkish languge.

Written by Fırat Oktürk, Posted in Taxation Law

  • Notification !

    Contents provided on this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents of this notification without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance is put in the preparation of this article, CottGroup® and member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject. Prior to taking any action in regards the above, please consult your client representative if you are a customer of CottGroup® or consult to a relevant party.

About the Author

Fırat Oktürk

Fırat Oktürk
Boss Governance, Payroll and Administrative Affairs Manager
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