Transportation Exemption in Turkey
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Turkey Payroll Outsourcing Alert – Transportation Allowance Exempted From Income Tax
Turkey payroll outsourcing leader issues a statutory alert for Turkey.
Mercans has alerted its Turkey payroll outsourcing clients of transportation allowance exemption related changes. Effective from 1 January 2020, the government of Turkey has exempted transportation allowance of up to 12.00 TRY per working day from personal income tax.
In accordance with the regulation No. 7194, up to 12.00TRY per working day of cash or in-kind benefits, including public transport cards and tickets, provided by employers to its employees to cover the cost of transportation from their place of residence to work, will be treated as nontaxable income. All cash and in-kind benefits exceeding the daily limit, will be subjected to personal income tax at the applicable tax rates.
In accordance with the amended amounts, the income tax will be calculated as summarized below.
| Salary | 3,500.00 TRY |
|---|---|
| Transportation Allowance | 264.00 12.00TRY * 22Days |
| Total Gross | 3,764.00 TRY |
| Social security base | 3,763.00 TRY |
| SSI Employee part (14%) | 526.96 TRY |
| SSI unemployed part (1%) | 37.64 TRY |
| Income tax gross | 2,935.00 TRY |
| Income tax deduction (15%) | 440.31 TRY |
| Stamp tax base | 3,764.00 TRY |
| Stamp tax (0.75%) | 28.57 TRY |
| Net salary | 2,730.52 TRY |
| Minimum living Allowance (Single EE) | 220.73 TRY |
| Net Salary payment amount | 2,951.00 TRY |
| SSI employer part | 771.62 TRY |
| SSI unemployment part | 7.28 TRY |
| Employer cose | 4,610.90 TRY |