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17November2020

New Regulations on Employment Incentives & Debt Structuring

New Regulations on Employment Incentives & Debt Structuring

New regulations came into force for employers and employees with the Law No. 7256 published in the Official Gazette, dated 17 Nov 2020, numbered 31307.

Important Points Regarding the Additional Employment Incentives as per the New Regulation

For those who benefit from unemployment benefits, long-term insurance premiums to be calculated for the period they benefit from the unemployment benefit will be covered by the Unemployment Insurance Fund, if they are employed within 90 days following their termination, work subject to uninterrupted service contract for 12 months and make a request.

The President has been authorized to extend the Employment Incentive practice of Young, Women and those with professional certificates until 31/12/2023.

The President has been authorized to extend the additional employment support in the provisional article 19 of the Unemployment Insurance Law until 31/12/2023.

The President has been authorized to extend the income tax withholding incentive and stamp tax support provided to private sector employers who provide additional employment in accordance with Law No. 7103 until 31/12/2023.

The effective date of the Tradesmen's ahi-order Fund application has been changed as 31/12/2023.

The President has been authorized to extend the short employment allowance until 30/06/2020.

The President has been authorized to extend the normalization support/incentive (Law No. 7252) until 30/6/2021.

If the employees whose employment contracts have been terminated in the period 01/01/2019 - 17/4/2020, apply to their last workplace and if they are actually employed by these employers, a daily support amount of 44,15 TL will be deducted from the SSI contributions on every month.

For those who are hired by the employer and leave for unpaid leave, a daily cash wage support amount of 39,24 TL will be paid to the employees.

In addition, for those who are within this scope and who declare that their application is not accepted, the Fund will provide a daily support of 34,34 TL.

For each employees to be employed in addition to the number of employees in the month or period for which the least insured is notified between 01/01/2019 – 17/04/2020, a daily support of 44,15 TL will be deducted from SSI contributions.

For those who are hired by the employer and leave for unpaid leave, a daily cash wage support amount of 39,24 TL will be paid to the employees.

Overpaid Short-Term Employment Allowances

Per the regulation; the excessive/overpaid short-term employment allowances arising from the wrong transitions of the employers related to the periods before 2020 October (included) will not be refunded from the employers. For the non-obtained allowances; these will be cancelled.

Restructuring of Tax and SSI Dues

For the dues/debts related to 2020 August and the previous months can be restructured by the authorities. The scope can be summarized as below:

  • Social security premiums, general health insurance premiums, unemployment insurance premiums, irregularity penalties.
  • Taxes related to the declarations that must be submitted until 30/08/2020, taxes accrued before this date and related tax penalties & interests and tax penalties not related on the actual/original tax regarding the determinations made before this date.

To benefit from the structuring, it is necessary to apply to Social Security Institution until 31/12/2020.

You can access the related Law via that link. (In Turkish)

Written by Erdoğdu Onur Erol, Posted in Social Security Law and Legislation, Taxation Law

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