Minimum Wages Turkey 2015 (1st period)

The Turkish Ministry of Social Affairs and Employment, has announced the minimum wage for 2015, the 1st period of 2015, (1st January 2015 - 30 June 2015).

Every year on the 1st of  January and the 1st of  July the government announces the new wages for the next coming 6 months.

Structure minimum salary

The statutory minimum wage is based on the gross salary for normal working hours, without overtime. You receive this wage on the agreed payment period, f.e. weekly, monthly or every 4 weeks. 

The gross salary may consist of:

• the (basic) salary in your employment contract has been agreed;
• the allowances for performance, shifts, irregular hours, standby duty and working conditions;
• the fixed bonus for the sales you make any payment and you will receive;
• the rewards of third parties caused by the work.

The total of these amounts shall not be less than the minimum wage.

Pay slip

To avoid problems in the future with the tax authorities, es we recommend to pay the wages exactly as mentioned on the pay slip. If you pay in cash, let your staff monthly sign the pay slip (your accountant will create the slip monthly).

Apartments staff

The legislation distinguishes apartments staff. There are more than 200,000 people who are registered as apartment staff (kapıcı). The government has made ​​an exception for this group allowing an exemption from income tax (gelir vergisi) and withholding tax (withholding tax). The exemption creates a higher net income. The total cost to the employer will remain the same.

MINIMUM WAGE AND THE TOTAL COSTS FOR EMPLOYER

Period 01.01.2015 - 30.06.2015

Gross Salary 1.201,50 Social Insurance Employee SGK 14% 168,21 Unemployment insurance 1% 12,02 Income Tax 15% (*) 63,08 Cost of living allowence (agi) 90,11 Stamptax 7,59% (*) 9,12 Total Deductions 252,43 Net Salary 949,07

TOTAL COSTS  EMPLOYER 

Gross Salary 1.201,50 Emplyer contribution Social Insurance SGK 15,5% 186,23 Unemployment insurance 2% 24,03 Total costs employer 1.411,76

Source: www.csgb.gov.tr

Merry Christmas and Best Wishes for 2015

We wish you a merry Christmas and a happy new year.

Law practice Selma Ören.

www.selmaoren.av.tr

www.youtube.com

Property Tax Turkey 2015

Amendment proposal property Tax 2015
Increment value tax– upcoming amendment 2015

In most Western European tax systems do levy tax over real assets property, but in Turkey the situation differs. There are no tax charges in Turkey for real asset property on individuals.  Perhaps that is the main reason why Turkey has a pleasant investment climate for indivuduals and of course foreigners.

However, Turkey does apply value tax, based on price increment by real estate sales. The main rule is: The seller is obliged to pay increment value tax, if the real estate property is sold within five years of purchase with price increment above the deductible amount.

The deductible amount for 2014 is 9.700, -TL.
The increment value tax charges are between 15% to 35%.
In addition to is also levied 10% fund (fonpayı).
For more details on the tax rates, I refer you to my website or blog address.

Increment value tax is just applicable on real estates sales, in the same fiscal year.
This is called in Turkish “değer artis kazancı” and depends on your personal declaration to the tax office. The tax office will not send you any tax declaration form ("beyanname") automatically. You must fill up the form yourself at the Tax office. If multiple sales occur in the same fiscal year, you have to  declare all of them in the same declaration.

It is true that the base for increment value tax is not determined by the actual purchase price, but on the base of the reference value determined by the Municipality.

For instance:
You buy a house for 80,000 Euro, but on the Tapu you only see a reference value of 80,000 TL.
Within five years you are selling it for 85,000 Euro but on the Tapu you are declaring the increased value given by the municipality of 100,000 TL. The difference between the purchase amount and sale amount with the exemption amount reduced to this brings your base of increment value taxation to be declared.

The tax levies on property in Turkey are constantly subject to changes. My regular readers will know that the Turkish government has increased the Tapu costs and charges for the last 10 years.

The most recent publication scheduled for 2015 is related to the expected increase of reference value in contrast to fair market value of real estate property. This could mean that with a possible sale of your home, you will pay significantly more Tapu transfer costs and pay on an increment value tax as described above.

The amendment proposal by November 2014 is a fact and we will see the implementation soon.