We are entering the new year with price hikes: Passport, driver's license, and mobile phone fee amounts have been determined

While the minimum wage for 2024 was set at 17 thousand 2 TL, price hikes came along with it. Before the new minimum wage even entered the citizens' pockets, passport, driver's license, and mobile phone fee amounts were also increased.

The General Communiqués of the Ministry of Treasury and Finance's Revenue Administration on the Inheritance and Gift Tax Law, Motor Vehicle Tax Law, Fees Law, and Income Tax Law were published in the duplicate issue of the Official Gazette and entered into force.

Accordingly, the taxes, fees, and other fixed amounts to be applied in 2024 were announced by the Ministry of Treasury and Finance. The revaluation rate for 2023 was realized as 58.46 percent and had been announced in November with the General Communiqué on the Tax Procedure Law. Effective from the new year, while some taxes and fees were increased at the revaluation rate, tariffs, primarily the income tax tariff, and exemption amounts that taxpayers will benefit from were also determined through relevant regulations.

The fixed limits and amounts in the Income Tax Law were increased at the revaluation rate. With the published communiqué, the income tax tariff to be applied in 2024 was determined. The first bracket of the income tax tariff to be applied in 2024 was increased from 70 thousand liras to 110 thousand liras, the second bracket from 150 thousand liras to 230 thousand liras, the third bracket from 370 thousand liras to 580 thousand liras, and the fourth bracket from 1 million 900 thousand liras to 3 million liras.

For those earning wage income, the third bracket, which was 550 thousand liras, will be applied as 870 thousand liras. According to the new tariff, which starts with the first income bracket of 110 thousand liras, all income tax payers, especially wage earners, will pay taxes at higher brackets later.

The 49.1 percent increase in the minimum wage was also reflected in the income tax and stamp duty exemption, reducing the tax that wage earners will pay. Due to the minimum wage being tax-exempt, all wage earners will not pay 37 thousand 126.92 liras in income tax and stamp duty in 2024.

In addition, the daily meal allowance exemption amount, which was 110 liras, increased to 170 liras, and the daily travel allowance exemption amount, which was 56 liras, increased to 88 liras. Thus, monthly payments of 4 thousand 420 liras for meals and 2 thousand 888 liras for travel can also be paid to employees as tax-exempt.

EXEMPTION AND DISCOUNT AMOUNTS INCREASED AT THE REVALUATION RATE

Exemption and discount amounts, which are regulated by earnings components in income tax and benefit a large number of taxpayers, were also increased at the revaluation rate.

The exemption amount for rental income increased from 21 thousand liras to 33 thousand liras, the exemption amount for capital gains increased from 55 thousand liras to 87 thousand liras, the exemption amount for incidental earnings increased from 129 thousand liras to 200 thousand liras, and the limit for filing a declaration regarding movable and immovable capital income not subject to withholding and exemption increased to 13 thousand liras.

The amounts that can be deducted as expenses regarding passenger cars also increased. The monthly rental fee that can be considered as an expense for passenger cars was increased from 17 thousand liras to 26 thousand liras, and the acquisition cost limit that can be written off as an expense through depreciation was increased from 950 thousand liras to 1 million 500 thousand liras.

TAX DISCOUNTS BENEFITING DISABLED INDIVIDUALS INCREASED

According to the Income Tax Law, a portion of the income of disabled citizens earning wage income and self-employment earnings was left tax-free through disability discounts. There was also an increase in the income tax discount amounts that disabled individuals benefit from.

According to the degree of disability, the monthly discount amounts of 1100, 2 thousand 600, and 4 thousand 400 liras increased to 1700, 4 thousand, and 6 thousand 900 liras, respectively.

In addition, the exemption limit applied to vehicle purchases for disabled and incapacitated citizens also increased. Accordingly, the SCT exemption amount, which was 1 million 4 thousand 200 liras in 2023, increased by 58.46 percent to 1 million 591 thousand 200 liras as of January 1, 2024.

INHERITANCE, GIFT, AND TRADESMAN TAX EXEMPTION AMOUNTS

By expanding the scope of tax-exempt tradesmanship, those who sell products they manufacture at home on the internet and similar platforms were also included in the scope of exemption. The exemption limit of 700 thousand liras was increased at the revaluation rate to 1 million 100 thousand liras.

The rental and earnings exemption limits for taxpayers subject to simple procedure also increased. The earnings of taxpayers subject to simple procedure had been exempt from income tax since 2021. Some limits and amounts, such as annual rental amounts and annual purchase, sale, and business revenue, which are among the conditions for being subject to simple procedure, were also updated.

While compliant taxpayers among income and corporate tax payers who file their declarations on time and pay their taxes benefit from a 5-point tax discount, the upper limit of the amount that can be subject to tax discount was also increased at the revaluation rate from 4.4 million liras to 6.9 million liras.

Exemption amounts in Inheritance and Gift Tax increased and the tax tariff was updated. The exemption amount applied for spouses and children in transfers through inheritance increased from 1 million 15 thousand liras to 1 million 609 thousand liras, and the exemption amount applied to gratuitous transfers and bonuses increased from 23 thousand 387 liras to 37 thousand 59 liras.

PASSPORT, DRIVER'S LICENSE, AND MOBILE PHONE TAXES

Motor Vehicle Tax (MTV) was increased by 58.46 percent. The 2024 tax for a vehicle that had a motor vehicle tax of 1479 liras in 2023 became 2 thousand 343 liras, and the 2024 tax for a vehicle that had a motor vehicle tax of 3 thousand 323 liras became 5 thousand 265 liras. For electric motor vehicles, tax will be paid at one-fourth of the tariff.

Passport and driver's license fees also increased. According to the General Communiqué on the Fees Law, the fee amount for 1-year passports will be 2 thousand 396.60 liras, 5 thousand 558.30 liras for 3-year passports, and 7 thousand 833 liras for those with a duration of more than 3 years. While the Class A driver's license fee was determined as 1308.40 liras in 2024, this amount will be applied as 3 thousand 945.40 liras for Class B driver's license fees.

The fee for mobile phones brought by passengers increased from 20 thousand liras to 31 thousand 692 liras.

Fixed stamp duty amounts were also increased by 58.46 percent. In addition, the bookkeeping limits to be applied for books to be kept in 2024 were re-determined. Accordingly, taxpayers whose annual sales amount exceeds 2 million liras will keep their 2024 books based on the balance sheet principle.

Irregularity and special irregularity penalties were also updated. The penalty for not issuing invoices and receipts increased to 3 thousand 400 liras. Starting from 2024, the invoice issuance limit was increased from 4 thousand 400 liras to 6 thousand 900 liras.

News Source: AA