We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Türkiye'de 2022 Yılı Asgari Ücret İstisnasının Vergi Takozuna Tahmini Etkileri.
- Authors
KAYA, Emre; SARAÇ, Özgür
- Abstract
While waiting for December inflation data for wage increase rates in Turkey in the last month of 2021, a part of the gross wage is included in the exemption with a regulation brought by the Government to the Income Tax and Stamp Tax laws, and an implicit increase is made to the wages in addition to the inflation figures. Although it mainly concerns the wages of the employees, this regulation also proportionally reduces the costs incurred by the employers as a result of the labor demand. Accordingly, although the exceptions include the gross wage, the gross wage is the employer's cost. Some of the obligations that employers have to pay on behalf of workers, as required by law, are elements of gross wage. These costs, which employers have to undertake other than paying wages for each worker employment, are called tax wedges. According to OECD data published biennially, Turkey is two points above the group average with an average tax wedge rate of 38.8 percent for all wage levels in 2020. It is estimated that the tax exemption brought to the minimum wage will have a reducing effect on the tax wedge and this will be below the OECD average. In this study, Turkey's tax wedge statistics for the period until 2020 are taken into account, (i) thanks to the minimum wage exemption introduced as of January 2022, the tax wedge rate will decrease, but the tax not paid due to the exemption will not result in favor of the employer since it directly reflects on net wages, (ii) It has been argued that legal deductions that are not included in the gross wage should be reduced in order to reduce both the tax wedge rate and the employer's cost, and (iii) the minimum wage exemption will have effects on the minimum wage of the employees and will distort the justice in the income distribution.
- Subjects
TURKEY; STAMP duties; INCOME inequality; WAGES; TAX exemption; WAGE increases; MINIMUM wage; INCOME tax laws
- Publication
Çalışma ve Toplum, 2023, Vol 76, Issue 1, p211
- ISSN
1305-2837
- Publication type
Article
- DOI
10.54752/ct.1241228