Individual Tax Obligations of Employees

Çalışanların Bireysel Vergi Yükümlülükleri

Individual Tax Obligations of Employees, Our expert teams help the employees to comply with the tax obligations and laws in the countries where they are assigned, and to save time and cost for the companies.

In this context, the services we offer;

  • Managing the process of opening and closing the liabilities of company employees,
  • Preparation of income tax returns of natural persons,
  • Managing the debt inquiry process by applying to the relevant authorities,
  • Supporting negotiations during the audit, inspection or reconciliation phases.

Individual Tax Obligations of Employees

The notification documents of tax debts received by employees who change jobs or are affiliated with more than one employer during the calendar year have been on the agenda recently. The fact that the documents pertaining to tax debts come to the employees and that the employees are not aware of their obligations that cause the tax debt to arise make the situation even more dramatic for the employees. So, in which case is an income tax declaration requested from the employees?

The important issue for the employee is to fulfill his responsibilities to the employer and to receive his wages in return. Employees may not be aware of some of the sanctions that come with changing jobs or working in more than one job. One of these situations is the need to file an income tax return.

However, the reality is that employees have such an obligation to be determined by legal regulations. Since ignorance of the law is never an excuse to take our responsibilities in these matters, unfortunately, objections on this subject do not change the truth.

The issue that causes this responsibility to arise is the amount of “Cumulative Income Tax Base” in job changes and in cases of working in more than one job.

Is There an Obligation to Submit Income Tax Return?

Yes, this responsibility has been an ongoing situation before. However, until now, due to the lack of infrastructure to determine the job changes and personal tax situations of the Revenue Administration, necessary determinations were not possible. The determination of this situation has reached the point where it can be easily detected with the harmonizing of the infrastructure systems of the SGK and the Revenue Administration in the process of merging the concise and premium service declaration.

How to Calculate Income Tax of Wage

Employees’ income tax is calculated by employers over their gross earnings, reported to tax authorities and paid. As long as they work, employers are responsible for the tax to be paid from the earnings of the workers.

Income tax is calculated and paid according to the monthly income of the employee, taking into account the income tax tariff determined by the state. This tax tariff covers a calendar year and is followed in an accumulative manner as the worker earns wages every month, and increases to the second tax bracket when the determined tariff exceeds the first limit. This calculation process is followed by the “Cumulative Income Tax Base”, which is the sum of the income tax bases of the employee within the calendar year. Whichever of the income tax brackets the Cumulative Income Tax Base corresponds to, the employee is taxed at the income tax rate of that bracket.

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