Exemption Amounts for Meals and Transportation Fees Provided to Employees Increased
According to Article 23/1, Paragraph 8 of the Income Tax Law, meal allowances provided to employees in the workplace are exempt from income tax. Additionally, in cases where meals cannot be provided at the workplace or within the workplace area, payments not exceeding 34.00 TL per day for the days worked are also exempt from tax and are not included in the taxable wage base.
As per the regulation published in the Official Gazette on 8 July 2022 with Presidential Decree No. 5799, the amount of 34.00 TL has been increased by 50%, raising the amount to 51.00 TL.
According to the same article’s Paragraph 10, the expenses for providing public transportation services for employees commuting to and from work are also exempt. In cases where transportation services cannot be provided, payments not exceeding 17.00 TL per day for the days worked are exempt and not included in the taxable wage base.
Similarly, with the Presidential Decree, this amount has also been increased by 50%, raising it to 25.50 TL.
For these exemptions to apply, meal payments must be made to institutions providing the meal service, and transportation must be provided using transportation cards, tickets, or vehicles designated for this purpose.
Moreover, any amounts exceeding these limits or cash payments will be taxed as salary.
The regulation has been in effect since its publication date, and it is valid as of 1 July 2022.
You can access the relevant Presidential Decree here.
Best regards,
BİLGENER
