Worked Example for 2026 on the Income Tax Withholding Incentive and Stamp Duty Exemption Applied Under Law No. 4691
WORKED EXAMPLE FOR 2026
ON THE INCOME TAX WITHHOLDING INCENTIVE AND THE STAMP DUTY EXEMPTION
APPLIED UNDER LAW NO. 4691
As is known, under Law No. 4691 the scope of the previously unlimited income tax withholding incentive and stamp duty exemption granted on a per-employee basis to R&D, design, software and support personnel has been restricted, so that, of the income tax calculated on the portion of an employee’s wage that does not exceed forty times the monthly gross minimum wage; the tax amount remaining after deducting the tax corresponding to the minimum wage exemption shall be cancelled by being deducted from the tax accrued on the withholding tax return to be filed.
The upper limit introduced for the income tax withholding incentive and the stamp duty exemption granted to Technology Development Zone companies under Law No. 4691 (the portion not exceeding forty times the gross minimum wage) has changed for 2026, as the gross minimum wage is TRY 33,030.
Worked Example for 2026
| 2025 | 2026 |
Gross Wage | 1,600,000.00 | 1,600,000.00 |
SGK Contribution Calculated on the SGK Ceiling Wage | 29,256.21 | 44,590.50 |
Income Tax Base | 1,570,743.79 | 1,555,409.50 |
40 Times the Gross Minimum Wage | 1,040,220.00 | 1,321,200.00 |
Income Tax Corresponding to the 40-Times Cap | 249,859.40 | 344,920.00 |
Minimum Wage Exemption Amount | 3,315.70 | 4,211.33 |
Remaining After the Exemption | 246,543.70 | 340,708.67 |
Amount to Be Cancelled | 246,543.70 | 340,708.67 |
Income Tax Rate (applied as 40%) | 0.40 | 0.40 |
Income Tax Calculated | 628,297.52 | 622,163.80 |
Income Tax Payable | 378,438.12 | 277,243.80 |
Stamp Duty Calculated | 12,144.00 | 12,144.00 |
Stamp Duty Corresponding to the 40-Times Cap | 7,895.27 | 10,027.91 |
Stamp Duty Remaining After the Exemption | 7,697.89 | 9,777.21 |
Stamp Duty Payable | 4,248.73 | 2,116.09 |
Summarise this article with AI
AI summaries can be inaccurate or incomplete and are no substitute for professional advice. Contact us for an assessment specific to your business.
