Adjustment to income tax rates

Treasury and Finance Minister Nureddin Nebati announced on social media that they had determined the income tax rate to be applied on salary income in 2023.

According to the statement, the first tranche of the income tax rate increased from 32,000 liras to 70,000 liras, the second tranche from 70,000 liras to 150,000 liras, the third tranche from 250,000 liras to 550,000 liras and the fourth cut from 880 thousand liras to 1.9 million liras.

The following statements were also included in the post;

“The 54.5 percent increase in the minimum wage was also reflected in the income and stamp tax exemption; thus reducing the tax to be paid by employees.

In 2023, due to the exemption from the minimum wage that we continue to apply, all employees will be exempt from income tax and stamp duty on their annual salaries in the amount of 120 thousand 096 liras.

EXCEPTION AMOUNT OF FOOD CURRENCY IS 110 TL

In the continuation of the action, it was said:

“We will not collect a total of 17,827.85 lira of taxes, including 16,916.32 lira of income tax and 911.53 lira of stamp duty, from each employee who earns a salary.

In addition, we are increasing the amount of the food allowance exemption that we increased to 51 lira in July this year, to 110 lira, and to 56 lira, which we increased to 25.5 lira.

Therefore, monthly payments of 2,860 lira for food and 1,456 lira for travel will be paid to employees as a tax exemption.

AID EXCEPTION AMOUNT FOR NURSERY 5004 TL

On the other hand, the written statement made by the ministry included the detail of both the income tax table and the tax exemptions applied in aid payments.

Highlighting that another important regulation provided for in the Income Tax Law in favor of employees is the exception for childcare assistance, it has been reported that income tax is not collected from the monthly childcare assistance payment of 3235.50 liras per each child that employers give to working women

In 2023, it was noted that the amount of the exemption for kindergarten support was increased to 5,004 lira.

In summary, due to the increase in the amount of exemptions for meals, travel and childcare payments made to employees in addition to their current salaries, the non-taxable amount of an employee who received all these payments reached 9 thousand 320 lira per month. .