| June 29, 2012 |
On January 1, 2013, the replacement of the tax income deduction tax advantage method with the state contribution system was put into place through the enactment of the Individual Pension Savings and Investment System Law published in Official Gazette 8338 and of the Law on Amendment of Certain Laws and Decree Laws. To be effected after August 29, 2012: replacement of the accumulation amount practice, defined as security income and subject to withholding tax, with the deduction of withholding tax only on the income amount when leaving the system. Introduction of new regulations to increase to a 10-percent upper limit to a 15 percent of the gross wages for the contributions that the employers pay to the IPS on behalf of employees and that are used for deductions when establishing taxable income. Extension by December 31, 2015 of the time allowed for the transfer of pension accumulations or committed amounts in an association, a provident fund, a legal professional organization or a similar organization or a group or employer that makes a pension commitment to its members or employees. Introduction of new periods allowed for completion of the transactions for transfers, leaving the system and pension procedures. Introduction of regulations on allowing the receiving of partial payments in the system and establishing funds comprised of precious metals.
On the same date, pension companies were allowed to become a member of the Insurance Association of Turkey with an amendment to Insurance Law No. 5684 and the name of the Association was changed from the “Association of the Insurance and Reinsurance Companies of Turkey” to the “Association of the Insurance, Reinsurance and Pension Companies of Turkey.” |
