Income Tax Advantage

As per the amendment of article 63, paragraph one, sub-paragraph (3) of the Income Tax Law, as effected through article 5 of the Law no. 6327, from 1.1.2013 on, when establishing the taxable salary basis, the premiums paid for personal insurances other than private pension, up to 15% of the salary received, shall be deductible in the process of establishing the taxable salary basis.

The insurance premiums to be taken into consideration when setting the taxable salary basis comprise 50% of the premiums paid by the employee for the savings life insurance policies for the employee, his or her spouse and minor children, along with the premiums paid by the employee for personal insurances such as life, accident, medical, illness, disability, unemployment, maternity, birth, and collection policies, provided that the insurance is executed with a pension or insurance firm located in Turkey with its headquarters in the country.

The Life Insurance premium payable by the salaried employee can be deductible off the income tax basis, provided that it does not exceed 15% of the gross wage earned in the relevant month, and the annual figure of the minimum wage on an annual basis.

The Life Insurance premium payable by taxpayers submitting annual income tax declaration shall be deductible provided that it does not exceed 15% of the declared annual income, and the annual figure of the minimum wage on an annual basis (provided that the premium is paid during the year in which the income was generated, and is not subjected to further deduction during the assessment of the net figure of the wage for wage earners).

To benefit from the tax advantage;