1. Income tax rates
- The income tax rates and brackets applicable for income generated (excluding employment income)
in 2020 calendar year are as follows (in TRY):
| Over | But not over | Tax on lower | Tax Rate on Excess (%) |
| 0 | 22.000 | - | 15 |
| 22.000 | 49.000 | 3.300 | 20 |
| 49.000 | 120.000 | 8.700 | 27 |
| 120.000 | 600.000 | 27.870 | 35 |
| 600.000 | And bove | 195.870 | 40 |
- The rates for employment income are also given below.
| Over | But not over | Tax on lower | Tax Rate on Excess (%) |
| 0 | 22.000 | - | 15 |
| 22.000 | 49.000 | 3.300 | 20 |
| 49.000 | 180.000 | 8.700 | 27 |
| 180.000 | 600.000 | 44.070 | 35 |
| 600.000 | And bove | 191.070 | 40 |
2. Social security base and ceiling
(Effective between 1 January – 31 December 2020)
| Daily (TRY) | Monthly (TRY) | |
| Base | 98.10 | 2.943,00 |
| Ceiling | 735,75 | 22.072,50 |
3. Minimum Living Allowance
Effective from 1 January 2020 the minimum living allowance (MLA) shall apply as below;
MLA |
|||
Marital Status |
Monthly (TRY) |
Marital status |
Monthly (TRY) |
Single |
220,73 |
|
|
Married (spouse unemployed) and without children |
264,87 |
Married (spouse employed) and without children |
220,73 |
Married (spouse unemployed) and 1 child |
297,98 |
Married (spouse employed) ve 1 child |
253,83 |
Married (spouse unemployed) and 2 children |
331,09 |
Married (spouse employed) and 2 children |
286,94 |
Married (spouse unemployed) and 3 children |
375,23 |
Married (spouse employed) and 3 children |
331,09 |
Married (spouse unemployed) and 4 children |
375,23 |
Married (spouse employed) and 4 children |
353,16 |
Married (spouse unemployed) and 5 children |
375,23 |
Married (spouse employed) and 5 children |
375,23 |
4. Other changes affecting wage tax calculations
- Tax- free luncheon vouchers: Effective from 1 January 2020, the daily limit for tax-free luncheon vouchers is TRY 24,84 TRY including VAT.
5. Updated Tax Exemptions
- The first TRY 40.000 of incidental gains;
- Under some circumstances, the first TRY 6.600 of the annual rent income of residents, providing the underlying property has been let as accommodation
- The first TRY 18.000 of capital gains excluding gains generated from sale of marketable securities or other capital market instruments.
6. Updated Exemptions on daily travel allowance
- Travel costs across the country that do not exceed TRY 66,85 (daily) is exempt from taxation. This exemption amount is TRY 161,15 for the Turkish Republic of Northern Cyprus.
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