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TAX FILING REQUIREMENT FOR THE EMPLOYEES HAVING A WAGE INCOME EXCEEDING TRY 600,000 IN 2020

As you are aware, pursuant to the Income Tax Law numbered 193, wages other than those exempted from tax are subject to income tax through deductions.

Previously, wages received from a single employer were not subject to declaration, regardless of their amount. Hence, in the past, an annual income tax return was not required to be filed for the wages received from a single employer. Following the amendment made by the Law on the Amendment of Digital Services Tax and Certain Laws and Decree No.375 (Law numbered 7194) which was enacted in December 2019, it was stipulated that, in case the wage (gross salary) income received from a single employer and taxed through deductions in 2020 exceeds TRY 600,000, it will have to be declared with an annual income tax return.

In this context, even if it is obtained from a single employer, if the total annual wage (gross salary) income exceeds TRY 600,000 (Six Hundred Thousand Turkish Lira) for 2020, individuals will have to submit a declaration in this regard. Meanwhile, wage income obtained from a single employer for the 2020 calendar year and not exceeding TRY 600,000 shall not be declared.

Therefore, please kindly note that the deadline for the submission of the annual income tax returns for wage incomes of the year 2020, exceeding TRY 600,000 is 31 March 2021.

Declarations to be filed within this scope can be submitted to the relevant tax offices in written form or via the e-Declaration System. We would recommend you to follow the process with your accountant.

Our Law Firm remains at your disposal for any further clarifications you may need.

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