Employer Tax Contributions

Tax Type	Rate	Base
Social Security Contributions	20.75% (can be reduced to 16.75% or 15.5%)	Employee's gross salary (subject to limits)
Unemployment Insurance	2%	Employee's gross salary (subject to limits)
Income Tax Withholding	Progressive (15% to 40%)	Employee's gross salary minus social security and unemployment contributions
Stamp Tax	0.759%	Employee's gross wages

Filing & Compliance

• Monthly Social Security Declarations (Aylık Prim ve Hizmet Belgesi) are due by the 23rd of the following month.
• Monthly Social Security Payments are due by the end of the following month.
• Monthly Withholding Tax Declarations (Muhtasar Beyanname) and payments for income tax and stamp tax are typically due by the 23rd and 26th of the following month, respectively.

In Turkey, employee tax deductions encompass several areas, including income tax, social security contributions, unemployment insurance, and stamp tax. These deductions are mandatory and calculated based on the employee's gross salary.

Income Tax

• Progressive Rates: Income tax in Turkey operates on a progressive scale, meaning higher earners pay a larger percentage of their income as tax. The rates for 2025 are:
  • 15% for income up to 158,000 TRY
  • 20% for income between 158,000.01 and 330,000 TRY
  • 27% for income between 330,000.01 and 1,200,000 TRY
  • 35% for income between 1,200,000.01 and 4,300,000 TRY
  • 40% for income above 4,300,000.01 TRY
• Cumulative System: The tax system is cumulative, meaning the applicable rate is based on year-to-date earnings. As earnings accumulate throughout the year, the tax rate may increase to the next bracket.
• Exemptions: An income tax exemption equivalent to the tax calculated on the minimum wage applies. Additional deductions are available for dependents: 9,900 TRY for the first degree, 5,700 TRY for the second degree, and 2,400 TRY for the third degree. Disablement deductions also apply based on the degree of disability.
• Tax Base Calculation: The income tax base is the gross salary minus social security and unemployment insurance contributions.

Social Security Contributions

• Employee and Employer Contributions: Both employees and employers contribute to social security. As of 2025, the employee contributes 14% of their gross salary, while the standard employer contribution is 20.75%. A 5% discount on the employer's contribution may apply under certain conditions, reducing it to 17.75%. However, without meeting those specific requirements, the employer pays the full 20.75%
• Unemployment Insurance: A separate unemployment insurance contribution of 1% is deducted from the employee's salary, with the employer contributing 2%. The state adds another 1%.
• Base and Ceiling: Contributions are calculated on earnings between the minimum social security base (26,005.50 TRY as of 2025) and the ceiling (195,041.40 TRY as of 2025).
• Example: Consider a monthly gross salary of 100,000 TRY. The employee’s Social Security contribution would be 14,000 TRY (100,000 x 0.14), the employer’s standard contribution would be 20,750 TRY (100,000 x 0.2075) or 17,750 TRY (100,000 x 0.1775) if they qualify for the discount, and the unemployment insurance contribution would be 1,000 TRY (100,000 x 0.01) for the employee and 2,000 TRY (100,000 x 0.02) for the employer.

Stamp Tax

• Rate: Stamp tax is levied at a rate of 0.759% of the gross salary.
• Example: On a 100,000 TRY gross salary, the stamp tax would be 759 TRY (100,000 x 0.00759).

Additional Considerations

• Employee Benefits: Certain employee benefits, such as daily food allowances (205.01 TRY per actual workday or a maximum of 240 TRY excluding VAT), may be exempt from social security premiums and income tax.
• Liaison Offices: Salaries from liaison offices in Turkey are exempt from income tax but are still subject to social security contributions.
• Payslips: Employers are required to provide payslips detailing all deductions.
• Tax Year: The tax year in Turkey follows the calendar year.