Pursuant to the Law No. 4632, employers shall automatically include in the AES the employees who are Turkish citizens or Blue Card holders and who have not turned 45. If you are over the age of 45, you can make a request and join the system. Accordingly, employers shall send to the system at least three percent of the premium-based earnings and of the pension deduction-based salary for the private sector and the public sector, respectively. Employees shall have the right to stay in the AES for as long as they wish.
Employees who have just started to work in a workplace where the employees have already been included in pension system, are included in the pension plan when the contribution paid by the employer is deducted from the first wage payment and transferred to the pension company.
If you live in a country that does not have a social security treaty with Turkey (if you fall within the scope of article 5g of the Law No. 5510, for instance; if you are a Turkish employee who is taken by an employer to be put to work in a foreign country that does not have a social security treaty with Turkey) you shall not be entered in the AES.
Change of Employer
When you change your job, different rules shall apply depending on whether your new employer is in the AES system or whether you were entered before, and on what age you are.
If your new employer is in the AES;
If your new employer is not in the AES;
If your new workplace in the system? |
Your age |
Your status |
What is the proposed application for you? |
---|---|---|---|
My new workplace is in the system |
I am younger than age 45. |
I am in the system that I had been entered in at my previous workplace. |
You shall entered in the system. Upon your request, your accumulations shall be transferred to the pension plan at your new workplace. |
I have withdrawn from/left the system that I had been entered in at my previous workplace. |
You shall be re-entered in the system. |
||
I am over age 45. |
I am in the system that I had been entered in at my previous workplace. |
You shall entered in the system. Upon your request, your accumulations shall be transferred to the pension plan at your new workplace. |
|
I have withdrawn from/left the system that I had been entered in at my previous workplace. |
If you request, you will be included in the system again. |
||
My new workplace is not in the system |
I am younger than age 45. |
I am in the system that I had been entered in at my previous workplace. |
You may continue to pay contributions yourself to the pension plan you had been entered in at your previous workplace or you may leave the system. |
I have withdrawn from/left the system that I had been entered in at my previous workplace. |
You shall not be re-entered in the system. |
||
I am over age 45. |
I am in the system that I had been entered in at my previous workplace. |
You may continue to pay contributions yourself to the pension plan you had been entered in at your previous workplace or you may leave the system. |
|
I have withdrawn from/left the system that I had been entered in at my previous workplace. |
You shall not be re-entered in the system. |
Employees with Multiple Employers
If have multiple employers and they report salary information to the SSI, you shall be entered separately to the plans offered by each employer in the AES.
Employees with Multiple Premium-based Earnings while Working for a Single Employer
If you work at multiple workplaces of a single employer, in other words; if multiple salary reporting is done to the SSI for you by the same employer, you shall be entered into the relevant pension plan for each workplace within the scope of the AES.
Employees that Leave Employment after just a short period of time
If you leave employment after working even for one day at a workplace, premium-based earnings will occur. Thus, you shall be entered into the system.
Employees with a Current Voluntary IPS Contract
There is no relation with your voluntary IPS contract and the contract as part of the AES. In other words, if you have both AES and IPS contracts at the same time, a separate account shall be opened for each, and no transfers can be made between these accounts.
Only the employer can change the pension company or transfer contracts to another pension company in the AES. Therefore, unless you begin working for another employer that is included in the automatic participation, you cannot change your pension company or transfer your accumulations to another pension company. You are not be allowed to change the pension plan, except for a plan change to request a plan with or without interest.
Nevertheless, it shall be up to you to decide on the funds for your contributions to be invested in. The AES offers fund options with or without interest, and you make your choice at the time of entry into the system. If you do not use your right to select, the employer shall decide on the funds to invest your contributions.
The funds offered vary depending on the period that your certificate has remained in the system.
Fund Presentation Period |
Accumulation Investment Funds |
---|---|
For the duration of the withdrawal period (Plan entry notice + 2 months) |
Initial fund |
End of initial period |
If employee does not make a choice until the certificate completes 1 year in the system, initial fund If employee makes a choice standard fund, initial fund or other funds |
Effective date + 1 year |
If employee does not make a choice standard fund If employee makes a choice standard fund, initial fund or other funds |
You are allowed a maximum of twelve fund distribution changes per year. For each fund distribution change request, you can select a maximum of 20 funds, including funds offered through BEFAS.
No other deduction shall be made on your accumulations.
The minimum contribution set by the Legislation is three percent. If you wish, you may increase the contribution by notifying your employer or reduce the increased amount again, provided that the minimum contribution amount stated in the Law No. 4632 is not below three percent.
You cannot make addition contributions other than the periodically paid contribution.
You may change the fund distribution a maximum of twelve times per year after completion of the withdrawal period. You may exercise this right one year after entering the plan.
You may request suspension of your contribution payments. However, contribution collection shall re-start at the end of three months. You may extend the suspension period by notifying your employer or pension company. Extension of suspension may only be made for quarterly periods.
Once your workplace changes, your new employer is required to enter you in the AES, if it is included in the AES. In that case, if you have a current AES contract with your previous employer, you may transfer your accumulations from it to your new contract.
If your new workplace is not yet in the AES, you may make payments to your current contract individually. In this case, you must submit your request to the pension company with regard to continuing your payments, by the end of the following month after the workplace change. You can continue to pay a contribution to the relevant certificate in the amount you set yourself.
You shall be informed about your inclusion in the AES on the business day after your first contribution is sent to your pension company account in cash. You may request to withdraw within two months after this notice. You may also leave the system anytime after this two-month period.
With the exception of alimony payments, no collection by sequestration, encumbrance or bankruptcy proceedings shall be granted on the fund shares invested in your auto enrollment certificate, on your accumulations up to the amount calculated by multiplying the number of months you have stayed in the system and the gross minimum wage, and part of the payments you will be receiving in the event of retirement up to the gross minimum wage amount valid on the date of sequestration, encumbrance or bankruptcy proceedings under the auto enrollment system . The amount which cannot be collected by sequestration will be calculated on the total of all balances in your accounts.
For example, assuming that a participant who has been in the system for 120 months has accumulated 4,000,000 Turkish lira and the monthly gross minimum wage on the date of foreclosure is 26,005.5 Turkish lira, then the amount of this participant's accumulations of 3,120,660 Turkish lira (120 * 26,005.5 Turkish lira) will not be sequestered.
For example, assuming that a pensioner who has retired under the AES receives 30,000 Turkish lira per month from the annuity insurance and the monthly gross minimum wage is 26,005.5 Turkish lira on the date of foreclosure, then th 26,005.5 Turkish lira portion of the 30,000 Turkish lira paid per month will not be subject to any sequestration.
If you leave the system by exercising your right to withdraw or leave the system voluntarily, you can re-join the system if you are working at the same workplace as of the date of request by sending your employer your request to be included in the system again.
Once you terminate all your certificates and leave the AES, you will not be given the 1,000 Turkish lira additional state contribution. However, if you have used your right of withdrawal and no additional state contribution has been calculated in relation to your certificates before, you can benefit from the 1,000 Turkish lira additional state contribution when you re-join the system. You will also lose the vesting periods for retirement and contribution arising from the contract you terminate.
As of July 1, 2021, participants are able to trade the funds of other pension companies that are available on the BEFAS platform. If you want to buy or sell the funds of other companies through BEFAS, you can make your request via the internet and/or the mobile application of your pension company.
You can easily access all your contracts with pension companies in the Individual Pension System (IPS) via the BES Mobile application.
With the BES Mobile application, you can easily access many information such as total savings in the system, State contribution amount, State contribution entitlement rate, historical development of your savings, retirement date, personalized estimated retirement income and savings amount, distribution of your savings according to fund types, risk value of your fund portfolio, your child's individual pension accounts, the accounts of your relatives to whom you inherit.
You can easily log in to the application with your e-State user profile without having to define a new username and a password. You can download the BES Mobile application to your mobile devices free of charge via Google Play and App Store.
Click to download the application to your iOS device.
Click to download the application to your Android device.
You have the right to decide on the funds for your contributions to be invested in within the scope of the certificate issued in your name. The system offers interest and no-interest fund choices. If you are conscious about interest, you can invest in no-interest participation funds with the phrase participation in the title of the pension company with which your employer has signed a contract.
Participation funds complying with Islamic principles include various instruments such as gold and other precious metals, stocks complying with the participation index and participation banking principles, and no-interest securities investment funds.
You can also buy and sell participation funds offered by pension companies other than the pension company with which you have a contract, via the Individual Pension Fund Trading Platform (BEFAS).
Duration/Business Days Specified in the Legislation | When an employee whose Auto Enrollment IPS account is with Pension Company A wishes to transfer his/her savings to Pension Company B, he/she performs the following procedures, respectively: |
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Ten business days from the date on which the transfer documents are submitted to the relevant company by the requesting party | 1. In the event that the employee’s workplace changes, or he/she leaves the job, the employee sends company B his/her request to transfer his IPS account from company A to company B, where he/she has another certificate as part of the auto enrollment opened in the system. |
2. Company B sends the transfer request form to the employee by mail or electronic means. | |
3. The transfer request form is signed by the employee or approved by electronic means and sent to company B. No time limit applies for the transfers to be made upon the changing of the workplace. | |
4. Company B starts the transfer process by registering the transfer information on the Digital Transfer Platform established by the PMC on the business day following the date of receipt of the request at the latest. | |
5. Within the nine business days following the registration of the transfer information on the Digital Transfer Platform by company B, the savings of the requester and the amount in the state contribution account, if any exists, are transferred to company B by company A. | |
6. If the contract with company B is a new contract, it becomes effective on the date the savings are transferred. |
Note: The forms you will access from this page are examples of the forms in the Circular on the Individual Pension System (2016/39) and are provided for informational purposes only. For transfer transactions, you must obtain your documents from the relevant pension company.
Your employer deducts at least three percent from your salary and transfers it into the account opened in your name in the pension company. You can track the contribution payments you have paid and other account information on your pension company's website. You will also find contribution information on the "Employee Information Note" sent to you quarterly by your pension company.
You can view the contributions you have paid on the payslip provided by your employer.
If you employer does not transfer your contribution to the pension company on time or does so late or incomplete, the unpaid contribution and the returns you may have lost shall be collected from your employer and transferred to your pension account.
As part of the AES, you shall receive;
State contribution shall be calculated as a commitment, and the committed amounts shall be recorded in your state contribution account. You shall be entitled to the amounts in your state contribution account in the following ratios:
The 30-percent state contribution amount that is recorded as commitment shall gain value based on the CIP fluctuations at the beginning of the calendar year following the month when the state contribution payment is calculated. According to the vesting period, the amount you are entitled to shall be paid into your account in cash.
However, there is an upper limit to the State contribution that will be calculated for the contributions. The State contribution amount you can receive within a calendar year shall not exceed the total annual gross minimum wage that is calculated based on the gross minimum wage determined for the first and second half of the relevant year. Exceeding the aforementioned limit will be considered in the calculation of the State contribution as carryover contribution shares transferred to the company accounts on the first day of each year. The limit shall be calculated per each participant. The 1,000-Turkish lira State contribution shall not be included in the annual State contribution limit.
Separate State contribution limits have been set for the contracts within the scope of AES and IPS, respectively. In other words, based on the State contribution upper limits of the year 2025 an individual that is in both the voluntary IPS and automatic participation system can benefit from the maximum annual State contribution amount by paying a contribution of 312,066 TL for both contracts separately.
Pursuant to the Law No. 4632, employers that fall within the scope shall enter into the AES the employees who are Turkish citizens and blue card owner. Accordingly, your employer has certain responsibilities toward you.
Subject |
The Transaction to be Performed and the Legal Deadline Set for the Completion of This Transaction |
---|---|
Access to your automatic participation certificate |
Your pension company shall be obligated to provide information about your automatic participation certificate within five business days following your entry in the plan. |
Notification of your entry in the pension plan |
Your pension company shall notify you that you have been entered into the pension plan on the business day after the first contribution that is deducted from your salary is transferred into your account in cash. |
Employee Information Note |
Your pension company will provide quarterly statements showing each period separately for the rate of deduction from your wage, contribution amount, savings amount, general information on investment instruments, current developments in financial markets, investment, price and return performance of the funds offered, investment risks employees might be exposed to and other financial risks in the “Employee Information Note." |
Account Statement |
Your pension company shall provide you with the “Account Statement” along with important changes in the parameters of your pension plan and in the legislation within 10 business days following each accounting period. |
Withdrawal process |
Your pension company shall refund your accumulations within 10 business days after receiving the withdrawal request. The pension company shall bear the losses arising from delay of payment pursuant to the relative articles of the Law No. 3095. |
Investing |
The contributions you have paid must be invested by dividing up among the selected funds within the scope of your contract on the second business day at the latest following the transfer to your pension company in cash. |
Fund distribution change |
Your pension company shall be required to submit the fund trading instructions within two business days of receiving your fund distribution change request. |
Leaving the system |
If you choose to leave the system, your pension company shall ask you to complete the “Withdrawal Request Form”. The accumulations in your automatic participation account must be paid within 20 business days following receipt of your Withdrawal Request Form by your pension company. |
Notification on the risks of your investments |
To ensure that your accumulations are less affected by financial market risks, your pension company shall provide a recommendation on your fund preferencesat least two years before you qualify for retirement. You are not required to accept the recommendation. |
Vesting for retirement |
You may leave the AES by exercising your right for retirement after staying in the system for 10 years and attaining the age of 56. In this context, you must apply to the pension company with whom you wish to exercise your right for retirement. When your application is received, your pension company will ask you to complete the “Retirement Request Form,” and the “Information Form,” and send you an “Account Statement.” |
In order to retire from the AES, you must stay in the system for 10 years from the first date of entry into the system and have attained the age of 56. After meeting these conditions, you may stay in the system and continue paying contributions to grow your savings even more.
Once you earn and use the right to retirement,
While you are exercising your right for retirement; if you purchase an annuity for at least 10 years, you shall earn the right for a state contribution that equals five percent of your accumulation amount.
If you leave the AES, the pension company shall deduct income (withholding) tax on the payments due to you based on your accumulations. The withholding tax deduction rate is as follows:
With the article 26/C of the Regulation of the Private Pension System, went into effect on September 28, 2023, it has become possible to pledge IPS savings as collateral through the transfer of receivables in the use of bank loans. Participants will be able to benefit from this opportunity after the infrastructure works are completed by pension companies and banks. All processes regarding the transfer of receivables will be carried out through the platform provided by the Pension Monitoring Center.
With this amendment, you can transfer to banks all or a part of your receivables, excluding the state contribution from your individual pension contracts, through a receivable transfer contract. However, contracts subject to administrative and legal claims regarding fund shares, such as cautionary judgment, seizure, bankruptcy and pledge, and noncontributory group contracts, contracts whose transfer or termination processes are ongoing, contracts established by transfer but not more than 6 months after the transfer, and contracts within the scope of pension income plan cannot be transferred. The transferred amount continues to be invested in the funds determined by the Board.
By the decision of the Insurance and Private Pension Regulation and Supervision Board, the transferred amount will continue to be invested in the Transfer of Receivables Fund of Anadolu Hayat ve Emeklilik A.Ş for participants who are not interest sensitive. For participants who are conscious about interest, it will be invested the Participation Based Transfer of Receivables Fund of Türkiye Hayat ve Emeklilik A.Ş.
After your loan debt is paid off, your receivable transfer contract ends, and your savings are re-invested in your preferred funds as part of your individual pension contract. If you default on at least two consecutive installments of your loan debt and do not make payment at the end of the at least 30-day period given by your bank to pay the unpaid installments, your debt will become due. If your loan debt is not paid and becomes due, the bank may request to collect the debt from the transferred receivable 30 days after the due date. In this case, your IPS contract is terminated and the remaining amount from your savings is paid to you after your debt to the bank is paid off.
In the event that a transfer contract is drawn up:
In the event of the employee’s death, the beneficiary(ies) stated in the contract, or if the contract does not specify any beneficiaries, the legal heirs, may legally request from the pension company to receive the savings in the individual pension account, including all state contributions. If you do not know whether the people to whom you are a legal heir has a pension contract, or if there is a contract (AES savings) but you do not know with which company, you may find out through the "Individual Pension Contracts Inquiry (On Behalf of the Person You Are Heir to)" service offered through the BES Mobile application or e-Government. You can inquire which pension companies the person you inherit from has a contract with by verifying your inheritance relationship by the institution from which you received the certificate of inheritance and entering the TR Identity Number of the person you inherit from. Inquiries can be made for certificates of Inheritance received from the Court - Ministry of Justice after 16/12/2016, and from the Notary - Notaries Union of Türkiye after 02/06/2021. You can get information by submitting your certificate of inheritance obtained before these dates to the PMC via the "Contact Us" page on the PMC Corporate Website.
Pension companies request the following to process the claims of the beneficiaries or legal heirs of the deceased:
You can contact your pension company to get the full list of documents they request.
Within 20 business days of the request for payment of the savings by the beneficiary(ies) or legal heirs, the company pays the remaining amount to the beneficiary(ies) or legal heir(s), after deducting a 5-percent income tax on the employee’s savings.
However, according to the provisions of the “Law on Restructuring of Certain Receivables and Amendment of Certain Laws” dated March 12, 2023, the heirs of the employees who died due to the earthquake on February 6, 2023, in the zones that are part of the force majeure declared by the Ministry of Treasury and Finance are exempt from income tax.
If the savings of the deceased employees are paid to their beneficiaries or legal heirs, the payment will be subject to inheritance and gift tax. You can find more on this tax in the “14. Payment of Savings to Beneficiaries or Legal Heirs in Event of Death of the Employee?” section of this Guide.
In case of the employee’s death, the savings and, if any, the money in the state contribution account is paid to the beneficiaries and legal heirs stated in the pension contract, without prejudice to the provisions of Turkish Civil Code No. 4721, dated November 22, 2001.
During the term of the pension contract or upon the death of the employee who is entitled to retirement, his/her savings and state contributions, if any, are subject to the inheritance and gift tax. Accordingly, an income tax of 5 percent will be withheld on the income earned by the deceased employee, and the remaining portion will be subject to inheritance and gift tax. After the deduction of the tax exemptions, the portion that is passed on to the heirs or beneficiaries at the relevant inheritance shares will be taxed according to the rates determined in the tariff.
It refers to the gratuitous acquisition of the value determined by the individual pension and automatic participation system by the beneficiaries or legal heirs through inheritance (succession) or other means during the term of the pension contract or upon the death of the employee who is entitled to retirement.
According to individual pension contracts, after the natural or accidental death of the insured, the insurance company must do the following:
After being taxed as an earning on movable assets pursuant to Article 75 of the Income Tax Law, the amount must be subjected to the inheritance and gift tax.
During the term of the pension contract or upon the death of the employee who is entitled to retirement, the legal heirs acquiring by inheritance or, in case the employee has appointed a third person who is not an heir as the beneficiary, the beneficiaries acquiring property gratuitously.
Additionally, the employee may choose to register his/her legal heirs as beneficiaries of the individual pension contract. In the event of a donation of goods to a person from his/her mother, father, spouse and children (except for donations from the adopted to adopting parents), the tax is calculated by applying half of the rates in the tariff regarding donations.
During the term of the pension contract or upon the death of the employee who is entitled to retirement, the taxpayers who have made out their inheritance and gift tax declarations due to the savings inherited or donated to them will determine the basis of the inheritance and gift tax for the first assessment in accordance with the values in the Tax Procedure Law of the gifted wealth. The tax base is obtained by subtracting the exemption amount determined by hereditary transmission or donation from the total of the assets acquired.
Accordingly, upon the death of the person participating in the individual pension system, the tax base to be calculated for his/her savings (contribution, contribution margin, state contribution and state contribution margin) will be the current value of the assets subject to donation, which is the basis of the tax assessment on the day of the taxable event.
The various debts and expenses that can be deducted in determining the inheritance and gift tax base are as follows:
For these debts and expenses to be deducted in the determination of the tax base, it is obligatory for the taxpayers to show them in the relevant section of the declaration and attach the relevant documents to the declaration.
The tax tariff is arranged based on double tariff for inheritance and donations, with a double incremental rate. There are increasing rates for donations in one part of the tariff and increasing rates for inheritances in the other. On the other hand, the increasing proportionality regarding the bases exceeding the amount in the last bracket is turned into a fixed rate.
The tax base brackets of the tax tariff are applied with annual increases at the revaluation rate determined in accordance with the Tax Procedure Law based on the previous year. Fractions that do not exceed 5 percent of the brackets calculated in this manner are not taken into account. The President is authorized to increase or decrease these determined amounts by half.
Tax Base | Tax Rate (%) | |
Hereditary Transmissions |
Donations | |
For the first 1,100,000 TRY | 1 | 10 |
For the next 2,600,000 TRY | 3 | 15 |
For the next 5,500,000 TRY | 5 | 20 |
For the next 10,900,000 TRY | 7 | 25 |
For the portion of the base exceeding 20,100,000 TRY | 10 | 30 |
(The tariff changed as of January 1, 2023 with the General Communiqué on Inheritance and Gift Tax Law No. 54)
However, according to the provisions of the “Law on Restructuring of Certain Receivables and Amendment of Certain Laws” dated March 12, 2023, the individual pension savings hereditarily transmitted to the heirs of the employee who died due to the earthquake on February 6, 2023 are exempt from inheritance and gift tax.
For the legal heirs of the employee or his/her appointed beneficiaries, after receiving the inheritance tax declaration and the certificate of inheritance during the term of the pension contract or upon the death of the employee who is entitled to retirement;
If the testator or the person who accumulated the savings has never resided in Turkey or the last residence cannot be determined, the inheritance and gift tax returns must be submitted to the tax office in the location of the property hereditarily transmitted or otherwise donated or in the location where the taxpayers reside (all assets transferred from the testator must be declared in this declaration).
Declarations can be made to the relevant tax offices in person or sent via registered mail.
Hereditary Transmissions in General
During the term of the pension contract or upon the death of the employee who is entitled to retirement, the legal heirs of the employee will submit their declarations on the following dates:
Non-Hereditary Donations
During the term of the pension contract or upon the death of the employee who is entitled to retirement, the beneficiaries appointed by the employee submit their declarations within one month following the legal acquisition of the savings, and if any, the amounts in the state contribution account.
During the term of the pension contract or upon the death of the employee who is entitled to retirement, there is a two-stage assessment in the inheritance and gift tax to be paid by the legal heirs and/or the beneficiaries appointed by the employee. These are as follows:
Inheritance and gift tax is paid in three years from the date of accrual and in two equal installments in May and November each year, totaling six installments.
I. With the credit cards in the contracted banks;
II. From the debit cards or bank accounts in the contracted banks;
III. Banks operating in foreign countries: with credit cards, debit cards and other payment methods;
I. Branches;
II. Alternative payment channels (Internet Banking, Telephone Banking, Mobile Banking, etc.);
The taxpayers can deduct the documented debts of the deceased employee, the expenses incurred for the funeral equipment and curation, tax debts, as well as the amounts donated to the beneficiary and the amounts and tax debts related to these amounts from the tax base of the amounts they are entitled to.
According to subparagraph (o) of Article 4 of the General Communiqué on Inheritance and Gift Tax Law titled “Exemptions,” the vested portion of the state contributions made to the individual pension account under the Individual Pension Savings and Investment System Law No. 4632 dated March 28, 2001, are exempted from the inheritance and gift tax. It’s important to note that this regulation concerns the employees. If the part of the state contributions that the beneficiaries or legal heirs are entitled to is paid to them and they exceed the exemption limit, they will have to pay inheritance and gift tax.
A 5-percent deduction is made from the savings and state contributions of the employees who leave the system due to the amount of income included in the payments made to those who leave due to compulsory reasons such as death. In this case, since the duration of the employee’s stay in the system is not taken into account, the legal heirs and/or beneficiaries can be entitled to all of the state contributions of the deceased employees.
In the event of death, if you do not know whether the people to whom you are a legal heir have pension contracts or whether such contracts exist, but you do not know with which company, you may send your request to the PMC via the Contact Us page with a copy of your certificate of inheritance.
CASE – 1
Contribution Amounts: 40,956.49 TRY
Fund Returns: 10,296.72 TRY
Total Savings: 51,253.21 TRY
1. If the employee has passed away and the spouse is the sole heir:
(Note: It is assumed that the participation receivables are determined with the division of matrimonial property, which is the priority legal transaction.) 35,195.80 TRY + 5,760.69 TRY = 40,956.49 TRY, no tax calculated on this amount. 8,746.37 TRY + 1,550.35 TRY = 10,296.72 TRY x 5% = 514.83 TRY (income tax amount) 10,296.72 TRY - 514.83 TRY = 9,781.89 TRY will be the net return. Amount Exempt From Inheritance and Gift Tax: 2,032,742 Turkish lira for the inheritance share of the spouse in case there are no inheriting descendants for the year 2023. Inheritance and Gift Tax Base: 0 TRY Inheritance and Gift Tax Payable: 0 TRY Amount left to the inheriting spouse: 40,956.49 TRY + 9,781.89 TRY =50,738.38 TRY.
2. If the employee has passed away and assigned another person as beneficiary with an inheritance contract:
35,195.80 TRY +5,760.69 TRY = 40,956.49 TRY, no tax calculated on this amount. 8,746.37 TRY + 1,550.35 TRY = 10,296.72 TRY x 5% = 514.83 TRY (income tax amount) 10,296.72 TRY - 514.83 TRY = 9,781.89 TRY net return. 40,956.49 TRY + 9,781.89 TRY = 50,738.38 TRY Amount left to the person assigned as beneficiary with an inheritance contract; 50,738.38 TRY - 23,387 TRY = 27,351.38 TRY IGT (inheritance and gift tax) base 27,351.38 TRY x 10% = 2,735.138 TRY Amount left to the beneficiary: 50,738.33 TRY - 2,735.138 TRY = 48,003.242 TRY.
CASE – 2
The employee passed away on January 2, 2023. The heirs did not disclaim the inheritance within three months. The amount of savings of the employee: 2,500,000 Turkish lira. (Note: Firstly, it was ensured that the assets belonging to the deceased employee and the living spouse were determined, and that the goods that were determined to belong to the living spouse as a result of this division were not declared in the inheritance and gift tax return; income tax was withheld, and the reserved share of the spouse was preserved.)