The Official Gazette of Turkey published the General Communiqué on the Tax Procedure Law (Serial No: 555) on December 30, 2023, under issue number 32415 (2nd Extraordinary). This communiqué details the procedures and principles for adjusting financial statements for inflation for the fiscal year 2023 and subsequent periods.
The General Communiqué on Inflation Adjustment was issued with the aim of eliminating the effects of ongoing high inflation on financial statements and mitigating the adverse effects of inflation on taxation.
In the Official Gazette dated January 2, 2024 and numbered 32417, a Communiqué was published by the Central Bank of the Republic of Türkiye.
The purpose of the Communiqué is to announce the default interest rate and minimum compensation amount for late payments made to the creditor pursuant to Article 1530, Paragraph 7 of the Turkish Commercial Code.
The statutory deductions applicable in a standard Turkish payroll are social security premium, income tax, and stamp tax. Also, the salaries generated from liaison offices in Türkiye are exempt from income tax per Article 34/14 of Income Tax Law, and these are only subject to social security.
Also, the income tax exemption as much as the income tax deduction amount calculated over the minimum wage for all wages introduced in 2023 will continue in 2024 as well.
Social Security Premium
Social Security Premium is calculated over wages monthly and paid jointly by the employee and the employer. The contribution rates are as follows:
