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Turkey: New Employment Income Tax Rates

(Aug. 12, 2010) Law 6009, amending Turkey's individual income tax brackets with retrospective effect from January 1, was published in the country's OFFICIAL GAZETTE on August 1,2010 (Gvergisi kanunuile bazi kanun ve kanun hükmünde kararnamelerde değişiklik yapilmasina dair kanun (Law No. 6009 ofJuly 23, 2010) [in Turkish], RESMÎ GAZETE, No. 27659 (Aug. 1, 2010) The change applies to employment income only; the brackets applicable to other forms of individual income remain unchanged. Amendment of the law resulted from a decision of the Constitutional Court, published in theApril 28, 2010, issue of the OFFICIAL GAZETTE (No.27565), which found the application of a single income tax rate to all types of income to be incompatible with the ability-to-pay principle. It therefore quashed that rate with respect to employment income. (Billur Yalti, Tax Rate Brackets of Employment Income Amended, TNS ONLINE (Aug. 6, 2010), International Bureau of Fiscal Documentation online subscription database.)

Under the amendment, the following income tax brackets apply to employment income:

Taxable Income

Tax on Lower Amount

Rate on Excess (%)

Up to 8,800 (about US$5,855)


8,800-22,000 (about US$5,855-$14,634)

1,320 (about US$878)


22,000-76,200 (about US$14,634-50,698)

3,960 (about US$2,635)


Over 76,000 (about US$50,698)

18,594 (about US$12,371)


Reportedly, excess taxes that were applied to employment income under the previous rates “will be credited against taxes re-calculated under the new rates.” (Id.)