Tax Declarations Changed in Turkey

Turkey Payroll Outsourcing Alert – Changes to Income Tax Withholding and Social Security Insurance Contributions Declaration Process Introduced

Turkey payroll outsourcing leader issues a statutory alert for Turkey.

Mercans has alerted its Turkey payroll outsourcing clients of Income Tax Withholding and Social Security Insurance Contributions related changes. In accordance with the law published in Official Gazette No. 29796 on August 9, 2016, Income Tax Withholding Declaration and Social Security Insurance (SSI) Premium and Service Declaration forms have been merged into a single declaration – Withholding and Premium Service Declaration. This change will go into effect on January 1, 2020, as confirmed in Official Gazette No. 30844 published on July 27, 2019.

In preparation to the introduction of the new combined declaration form, employers are urged to ensure the following

• Employers’ tax identification numbers reported to the Ministry of Finance and SSI Authority are up-to-date and matching;
• It became very important to use correct occupational codes for employees on declarations. Incorrect declaration of the occupational code will have administrative fine as of 01/01/2020.