Following the judgment of the 10th Chamber of the Council of State dated June 15, 2023 and numbered E:2019/11351, K:2023/3625, which was definitively upheld by the decision of the Plenary Session of the Administrative Law Chambers of the Council of State dated March 3, 2025 and numbered E:2024/83, K:2025/485, the Social Security Institution has introduced amendments to its secondary regulations concerning the matter. Within this scope, by the Circular of the Social Security Institution dated August 25, 2025 and numbered 2015/12, an amendment has been made to Article 1.2 titled "Procedures to be Carried Out Regarding Debt Subject to Statute of Limitations" of the Circular on Employer Transactions numbered 2020/20.

With the amendment made on July 20, 2025 to Law No. 5746 on the Support of Research, Development and Design Activities and Law No. 4691 on Technology Development Zones, the amounts to be deducted from wages within the scope of the income tax withholding incentive, as well as the stamp tax exemption amount, have been limited to "forty times the gross minimum wage."

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The Revenue Administration has issued a ruling (February 25, 2025 dated ve 15584 numbered) on the treatment of tax deductions when employers are notified of private health insurance payments after the specified time frame.

The following points are summarised in this matter:

• A private health insurance policy is in effect from October 14, 2023 to October 14, 2024.
• Policy premiums are paid on time in instalments.
• Payment documents/receipts were not submitted to the employer in the months of payment but were instead provided later, in July 2024.
• The issue in question is whether the private health insurance premiums paid for the previous period can be deducted from income tax as of July 2024.

As published in the Official Gazette dated 07 August 2025 and numbered 32979, the Regulation Amending the Regulation on Small and Medium-Sized Enterprises ("Regulation") has been enacted pursuant to Presidential Decision No. 10182.

With the enactment of this Regulation, the monetary threshold regarding the annual net sales revenue or financial balance sheet total of small and medium-sized enterprise ("SME") has been increased, thereby modifying the definition of SME. In particular according to Regulation: