The salary income earned by the employees are declared to the tax office with the Annual Income Declaration under below circumstances.

You can find below the important points to consider with regards to the salary income taxed via stoppage;

  1. In case of taxpayers', who receives income from more than one employer, total income received from the secondary employers exceeds the amount in the second income segment of the income tax tariff (40.000 TL for 2019), these salary incomes will be declared with annual declaration.
  2. In case of income is received from more than one employer, the employee can freely choose which income will be considered as primary.
  3. In case annual declaration is to be submitted, it is possible for expenses of education, health, donations and charities to be subject to deductions of the declared income.
  4. Taxes paid by stoppage can be deducted from income tax calculated over the declaration.

Salary income which are not subject to stoppage (excluding other salaries) will be declared, regardless of their amounts.

The types of salaries which are not subject to stoppage can be listed as below;

  1. Salaries paid from outside Turkey directly to the employee. (not the salaries within the scope of exemptions)
  2. Salaries of the employees working on foreign embassies and not benefited from the exemptions on Income tax law, Article 16.
  3. Salaries determined as to be declared via the annual income tax declaration by the Ministry of Finance.
  4. Any salary income apart from the above not subject to stoppage.

Non-tax residents would not be responsible to submit annual income tax declaration for their salaries fully subject to stoppage. And, if they are required to submit an annual income tax declaration for the other income types, they would not include salaries in that declaration.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.