Individual - Significant developments

Last reviewed - 16 October 2020

There has been 2 significant developments in 2019 regarding individual taxation:

1 - An additional tax bracket of 40% has been introduced, which has become the marginal tax rate applicable for the income after annual income of 600,000 TRY.

2 - Individuals who received all their salary income from one Turkish employer did not have to report such salary income in their annual income tax returns until 2020. From 2020 and onwards, individuals earning annual salary income over 600,000 TRY (for 2020) would be obliged to report such salary in their annual income tax returns even though they received their salary from a single Turkish employer.

Filing an annual income tax return does not necessarily bring additional tax burden for such salary earners, as the applicable tax rate and brackets in the tax return is the same as the ones in payroll taxation. Then again, if the individuals have other types of reportable income in the tax return, the applicable tax rate for such income would automatically rise to 40% due to salary income inclusion in the tax return.