WHAT IS RELATED TO WORKING LIFE IN THE NEW DRAFT LAW?
Last week, a comprehensive new draft law was presented to the Turkish Grand National Assembly (TBMM).
It is expected that this proposal will be accepted and published in the Official Gazette in a short time and then will enter into force. The proposal also includes vital regulations regarding working life.
It will be easier to take advantage of the tax-free meal charges
The first paragraph of Article 23 of the Income Tax Law regulates the exceptions in wage income. According to the eighth sentence of this paragraph, the advantages provided by employers for providing employees with meals at the workplace are exempt from income tax. However, where meals are not provided by the employers at the workplace, these payments are considered as exemptions, provided that the price of a one-day meal for the days worked does not exceed the amount specified for the relevant year (51 TL for 2022), and the related payment is made to the taxpayers who provide the meal delivery service. In addition, if the meal fee is charged to food cards or checks, it is exempt from income tax provided that the portion of the meal cost not exceeding 51 TL is used in businesses that provide catering services. In cases where these cards are used for shopping in businesses that do not provide catering, such as grocery, this exception cannot be used. With the regulation introduced by the new draft law, it will be possible to benefit from the mentioned exception in case the meal cost is deposited into the bank account of the employees and this amount is used by the employees catering services.
Tax exemption for employees on abroad
A new sentence is added to the first paragraph of Article 23 of the Income Tax Law with the new draft law and a new exception regulation is also introduced regarding wage incomes. Thereafter; In the construction, repair, installation works, and technical services abroad, in order to encourage the service personnel to be employed abroad, the wage payments made to the service personnel who are taken abroad to work in these works and who actually work abroad, are exempted from income tax and stamp tax.
Exception for electricity and heating payments
Another vital regulation in the new draft law is that about electricity, natural gas, and other heating payments made by employers to their employees. Accordingly, monthly payments not exceeding 1,000 TL to be made by the employer, in return for electricity, natural gas, and heating expenses, from the effective date of the article until the end of June 2023, in addition to their current wages earnings, will not be included in the earnings subject to the premium and will be exempted from income tax.
Incorrect short-time working allowance (KÇÖ) and cash wage support transactions dismissed
With the New Draft Law, a temporary article is added to Law Number 4447 and a few regulations are made regarding the incorrect transactions made during the pandemic process. According to this;
10.10.2022
Dr. Mehmet BULUT
Labor and Social Security Expert
[email protected]
Last week, a comprehensive new draft law was presented to the Turkish Grand National Assembly (TBMM).
It is expected that this proposal will be accepted and published in the Official Gazette in a short time and then will enter into force. The proposal also includes vital regulations regarding working life.
It will be easier to take advantage of the tax-free meal charges
The first paragraph of Article 23 of the Income Tax Law regulates the exceptions in wage income. According to the eighth sentence of this paragraph, the advantages provided by employers for providing employees with meals at the workplace are exempt from income tax. However, where meals are not provided by the employers at the workplace, these payments are considered as exemptions, provided that the price of a one-day meal for the days worked does not exceed the amount specified for the relevant year (51 TL for 2022), and the related payment is made to the taxpayers who provide the meal delivery service. In addition, if the meal fee is charged to food cards or checks, it is exempt from income tax provided that the portion of the meal cost not exceeding 51 TL is used in businesses that provide catering services. In cases where these cards are used for shopping in businesses that do not provide catering, such as grocery, this exception cannot be used. With the regulation introduced by the new draft law, it will be possible to benefit from the mentioned exception in case the meal cost is deposited into the bank account of the employees and this amount is used by the employees catering services.
Tax exemption for employees on abroad
A new sentence is added to the first paragraph of Article 23 of the Income Tax Law with the new draft law and a new exception regulation is also introduced regarding wage incomes. Thereafter; In the construction, repair, installation works, and technical services abroad, in order to encourage the service personnel to be employed abroad, the wage payments made to the service personnel who are taken abroad to work in these works and who actually work abroad, are exempted from income tax and stamp tax.
Exception for electricity and heating payments
Another vital regulation in the new draft law is that about electricity, natural gas, and other heating payments made by employers to their employees. Accordingly, monthly payments not exceeding 1,000 TL to be made by the employer, in return for electricity, natural gas, and heating expenses, from the effective date of the article until the end of June 2023, in addition to their current wages earnings, will not be included in the earnings subject to the premium and will be exempted from income tax.
Incorrect short-time working allowance (KÇÖ) and cash wage support transactions dismissed
With the New Draft Law, a temporary article is added to Law Number 4447 and a few regulations are made regarding the incorrect transactions made during the pandemic process. According to this;
- The Ministry and its personnel cannot be held responsible for the procedures regarding the receipt, evaluation, and payment of short-time working applications made by employers due to covid-19, as well as cash wage support transactions.
- Those who have not been collected from the short-time working allowance and cash wage support payments due to Covid-19 due to incorrect transactions will be canceled. However, those collected will not be refunded or deducted.
- In the period during which the short-time working allowance is applied, the said regulations will not be applied for the excess and unfair payments due to the dismissal of workers by the employer, and the short-time working allowance and cash wage support payments that have been the subject of a criminal investigation or prosecution, except in cases contrary to the rules of morality and goodwill.
- As a result of criminal investigation or prosecution, the provisions of dismissal may be applied to those who have been given a decision of non-prosecution or acquittal.
10.10.2022
Dr. Mehmet BULUT
Labor and Social Security Expert
[email protected]
