Jan 13, 2020 1 min read

Transportation Exemption in Turkey

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.

Salary3,500.00 TRY
Transportation Allowance 264.00 12.00TRY * 22Days
Total Gross3,764.00 TRY
Social security base3,763.00 TRY
SSI Employee part (14%)526.96 TRY
SSI unemployed part (1%)37.64 TRY
Income tax gross2,935.00 TRY
Income tax deduction (15%)440.31 TRY
Stamp tax base3,764.00 TRY
Stamp tax (0.75%)28.57 TRY
Net salary2,730.52 TRY
Minimum living Allowance (Single EE)220.73 TRY
Net Salary payment amount2,951.00 TRY
SSI employer part771.62 TRY
SSI unemployment part7.28 TRY
Employer cose4,610.90 TRY

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