Introduction

According to the Turkish Income Tax Law, salary income includes monetary payments, in-kind benefits, and other compensations that can be expressed in monetary terms, provided in return for services rendered by employees who are subject to an employer and tied to a specific workplace. Below are the updated thresholds and requirements for filing an annual income tax return for salary income in 2024.

Understanding the rules of the Annual Income Tax Return in Turkey for Employees is essential for both local and expatriate workers to ensure full compliance with Turkish tax regulations.

1. Salary Income from a Single Employer

If the total salary income from a single employer exceeds 1,900,000 TL in 2024, employees must file an annual income tax return.

Filing deadline:

The tax return must be submitted in March of the following year.

If an individual is already required to file an income tax return for other income sources, salary income must also be included in the same return.

This is one of the most common situations that triggers the requirement to file an Annual Income Tax Return in Turkey for Employees.

2. Salary Income from Multiple Employers

If an individual receives salary income from multiple employers during the same fiscal year, they must file an annual income tax return under the following conditions:

• If the total salary income (including income from the first employer) exceeds 1,900,000 TL,
• If the total salary income from the second and subsequent employers exceeds 150,000 TL.

Declared income:

The tax return must include the total salary income from all employers.

3. Salary Income from Foreign Employers

Individuals who earn salary income from foreign employers and are considered tax residents in Turkey must file an annual income tax return regardless of the amount.

Exception:

Employees of liaison offices or regional management centers are exempt from filing an income tax return for their salary income if they qualify for the relevant exemptions.

Foreign-sourced salary income is also subject to the Annual Income Tax Return in Turkey for Employees, regardless of amount, unless exemptions apply.

4. Deductions Applicable to the Tax Return

Employees filing an annual income tax return for salary income earned in 2024 can benefit from the following deductions to reduce their taxable income:

Education and healthcare expenses: Limited to 10% of the declared income.
Donations and charitable contributions: Donations made to public institutions, tax-exempt foundations, or associations serving the public interest.
Insurance premiums:

• 50% of life insurance premiums,
• 100% of individual insurance premiums covering death, accident, illness, health, disability, maternity, education, etc.

Limitations:

• The total deductible amount cannot exceed 15% of the declared income or the annual gross minimum wage.

5. Offsetting Taxes Paid

The following taxes can be offset against the income tax calculated on the declared salary income:

• Income taxes withheld at source in Turkey.
• Income taxes paid abroad on salary income earned outside Turkey (if Turkey has a Double Taxation Agreement (DTA) with the respective country).

In all cases, correctly completing the Annual Income Tax Return in Turkey for Employees helps avoid double taxation and ensures legal compliance.

Conclusion

Filing the Annual Income Tax Return in Turkey for Employees is a legal obligation that may arise based on income thresholds, multiple employers, or foreign-sourced salaries. Understanding these rules is essential to remain compliant, benefit from available deductions, and avoid penalties due to underreporting or late filing.

Contact us if you need professional support in preparing or reviewing your annual income tax return in Turkey. Our experts are here to ensure full compliance with the latest 2024 regulations.