Entrance
As of 2024, many important changes in tax legislation have come into force in Turkey. These changes cover a wide range from social security premiums to income tax brackets, from corporate tax rates to various tax exemptions. In this article, we’ll discuss these changes in detail, which are critical for accounting and finance professionals.
Social Security and Income Tax Changes
- Social Security Premium Floor and Ceiling Amounts In 2024, the social security premium floor and ceiling amounts have been revised. The minimum daily earnings amount is 666.75 TL and the monthly minimum earnings amount is 20,002.50 TL. In addition, the ceiling amounts of social security premiums have been updated to 5,000.63 TL per day and 150,018.90 TL per month. These changes directly affect the social security premium payments of employees and employers.
- Income Tax Brackets and Exemptions As of 2024, income tax brackets and exemptions have been updated. According to the new regulation, the 15% tax rate will be applied for incomes between 0-110,000 TL, and the 20% tax rate will be valid for incomes between 110,000.01-230,000 TL. Similar updates have been made in higher income brackets, and these changes increase the tax burden.
Corporate Tax Changes
- Increase in Corporate Tax Rate The corporate tax rate has been increased from 20% to 25% as of 2024. For certain sectors such as banks, leasing and financing companies, this rate is set at 30%. In addition, a 5-point reduction in the corporate tax rate will be applied to income from export activities.
- Abolition of VAT and Corporate Tax Exemptions on Real Estate Sales As of 2024, VAT and corporate tax exemptions applied to real estate sales have been abolished. This amendment affects the taxation of income from the sale of real estate held for at least two years. This will lead to income from real estate sales being taxed at higher rates.
- Abolition of Exemptions for Mutual Funds Corporate tax exemptions applied to income from fully taxed investment funds have been abolished. This amendment covers the taxation of income from mutual fund participation shares. It is important for traders to keep an eye out for these changes and adjust their investment strategies accordingly.
Additional Motor Vehicle Tax
As of 2024, an additional motor vehicle tax will be introduced. This tax will be levied on motor vehicle owners on a one-time basis, especially for 2023. This practice is one of the measures taken by the state to generate additional income.
Result
These significant changes to the tax legislation in Turkey in 2024 increase the financial obligations of both individuals and businesses. These changes, from social security premiums to income tax brackets, from corporate tax rates to various tax exemptions, require caution in financial planning. It is of great importance for accounting and finance professionals to have up-to-date information in order to adapt to these changes and to serve their clients in the best possible way.
This article provides a comprehensive overview of the tax legislation changes in Turkey for 2024 and aims to help professionals prepare for these changes.
