Part of the per diem paid for a business trip is exempt from income tax in Turkey; anything above that is treated as salary. The exempt amount is not a single figure — it moves with the employee’s gross monthly salary and with whether the trip is domestic or abroad. This article sets out the 2026 amounts and the mistakes payroll makes most often.
Under article 24/2 of the Income Tax Law, the whole of the actual travel cost, and the daily allowance for food and accommodation up to what a civil servant on the same salary level receives, are exempt. For 2026 the domestic ceiling is 900 lira a day, and from 1 July an employee needs at least 40,762.28 lira gross a month to reach it. The excess is treated as net salary, grossed up and taxed. In social security the whole allowance stays outside premium earnings, with no cap.
Two methods: per diem and actual expense
Travel costs are met under one of two methods; the employer chooses, but the two cannot be combined on one trip. A city transport allowance, a fixed monthly travel allowance or an assigned car are not travel allowances at all: they are salary by nature.
Per diem method
- A fixed daily amount, no receipts required
- The exemption is capped by the civil servant allowance
- Travel costs reimbursed separately, against documents
- Light on document handling
Actual expense method
- Hotel, meal and travel invoices are met in full
- No cap on the amount, but documents are compulsory
- Invoices must be issued in the company’s name
- Value added tax deductible where conditions are met
If the company settles the hotel and meal invoices and also pays a daily allowance for the same trip, the whole allowance counts as salary — the exemption is lost entirely, not proportionally. Travel costs sit outside this rule.
Domestic daily allowance: the 2026 figures
The daily amounts are set annually in a schedule to the Budget Law and do not change during the year. What changes is the gross salary band deciding which amount applies: the bands follow the civil service salary coefficient, reset twice a year, so they rise in July. The table below applies from 1 July 2026.
| Employee’s gross monthly salary | Daily exempt amount |
|---|---|
| 40,762.28 lira and above | 900.00 lira |
| 40,478.69 – 40,762.27 lira | 890.00 lira |
| 37,012.56 – 40,478.68 lira | 880.00 lira |
| 32,601.13 – 37,012.55 lira | 870.00 lira |
| 27,236.51 – 32,601.12 lira | 860.00 lira |
| 27,236.50 lira and below | 850.00 lira |
In the first half of the year the ceiling was also 900 lira; what differed was the threshold. As the coefficient moved from 1.387871 to 1.575512, the threshold rose from 35,907.57 to 40,762.28 lira. An employee on 36,000 lira gross who qualified in June drops a band in July, so payroll has to revisit it then.
How the excess is taxed
Anything above the exemption is a net salary payment: grossed up, then subject to withholding and stamp tax. The example below assumes an employee on 45,000 lira gross, paid 1,500 lira a day for a five-day domestic trip.
The 3,000 lira is grossed up and taxed on the employee’s band, with stamp tax at 0.759 percent. The 4,500 lira within the exemption appears on the payslip as a non-taxable item.
Allowances for travel abroad
Amounts for travel abroad are set country by country by Presidential Decision no. 10928 of 30 January 2026, applying from 1 January 2026. The schedule runs to seven salary columns on the same logic as the domestic table: the higher the gross salary, the higher the column.
| Country | Top column amount | Currency |
|---|---|---|
| United States | 199 | US dollar |
| Germany | 176 | Euro |
| France | 169 | Euro |
| United Kingdom | 127 | Pound sterling |
| Switzerland | 286 | Swiss franc |
| Canada | 264 | Canadian dollar |
| Saudi Arabia | 677 | Saudi riyal |
Combined lines cover the other European Union member states and countries outside that group. Travel to the Turkish Republic of Northern Cyprus has its own schedule in the same decision.
Abroad, the allowance is increased by fifty percent for the first ten days of each trip, so the United States figure of 199 dollars is taken as 298.50 for those days. The uplift raises the exemption ceiling itself; from the eleventh day the normal figure returns.
Social security and stamp tax
The same payment is treated differently under three sets of rules; the income tax ceiling has no counterpart in social security.
Limited to the amount matching the employee’s gross salary band; the excess counts as salary and is withheld on.
Excluded from earnings subject to premium whatever the amount. Even the part treated as salary for income tax attracts no premium — the two regimes part company here.
The amount above the exemption is treated as salary, so stamp tax applies at the salary rate.
Time limits and exchange rates
A daily allowance cannot run indefinitely. For domestic travel to the same place on the same assignment, at most 180 days may be paid in twelve months: the first ninety in full, the next ninety at two thirds. Abroad, the first 180 days are paid in full and the rest at two thirds. Past those limits the whole payment becomes salary, so the day count matters on long site assignments.
For allowances in foreign currency the lira equivalent is computed at the selling rate on the date the advance accrued, or otherwise on the date the travel return is drawn up.
The mistakes made most often
- Applying one figure to everyone. Paying 900 lira across the whole payroll under-taxes employees in the lower bands.
- Skipping the July update. An employee in the top band in January can fall a band in July.
- Paying an allowance alongside invoices. Settling the hotel invoice and also paying an allowance loses the exemption in full.
- Not grossing up the excess. The excess is a net payment; treating it as gross understates the withholding.
- Losing track of the time limits. Missing the ninety and 180 day thresholds turns the whole payment into salary.
Frequently asked questions
Are receipts needed to pay a per diem?
Not for the allowance itself — food and accommodation are covered by a fixed amount. Travel costs do need documents, and the assignment letter and travel return should be kept on file.
Why does the exempt amount differ between employees?
The law ties it to the allowance paid to a civil servant on the same salary level, so the measure is the employee’s gross monthly salary.
Is the whole allowance really free of social security premiums?
Yes, whatever the amount, including the part treated as salary for income tax.
Can we pay an allowance if the company pays the hotel directly?
You can, but not exempt: where the two methods run together, the whole allowance counts as salary.
Which exchange rate applies to allowances abroad?
The selling rate on the date the advance accrued, or otherwise on the date the travel return is drawn up.
When are the amounts updated?
The daily figures annually, in the Budget Law. The salary bands deciding which figure applies change in January and July with the civil service coefficient.
Ozbek CPA works on travel allowance policy, the exempt and taxable split on the payslip, exchange rate and time limit treatment abroad, and pre-audit review. A related subject is tax treaties in Turkey. To have your current practice reviewed, get in touch.
- Income Tax Law no. 193, article 24/2 and article 40/4
- Travel Allowance Law no. 6245 and schedule (H) to the Budget Law
- Circulars of the Ministry of Treasury and Finance on financial and social rights — 6 January 2026 (no. 1) and 3 July 2026 (no. 5)
- Decision on allowances for travel abroad — Presidential Decision no. 10928 of 30 January 2026
- Social Insurance and Universal Health Insurance Law no. 5510, article 80
- Revenue Administration — current amounts and announcements
