05July2017

INCOME TAX EXEMPTED SEVERANCE PAY

INCOME TAX EXEMPTED SEVERANCE PAY

According to the circular numbered 27998389-010-06-02-5820 released by the General Directorate of Budget and Fiscal Control on 07.01.2017 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective as of 01.07.2017.

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 01.07.2017 – 31.12.2017 maximum severance pay to be exempted from income tax is 4.732,48.- TL,

b. Income Tax Exempted Child Support

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2017– 31.12.2017. Monthly child support to be exempted from income tax is;

  1. Monthly child support to be exempted from income tax is;
    • For children 0-6 years of age – 51,35.- TL,
    • For children over 6 years of age – 25,68.- TL.

To access the full circular of the above announcements, please click here. Please also be advised that the contents of this circular is in Turkish.

Written by Fırat Oktürk, Posted in Taxation Law, Labour Law

About the Author

Fırat Oktürk

Fırat Oktürk
Boss Governance, Payroll and Administrative Affairs Manager