How Can You Benefit From Tax Deduction?
Wage-earners and taxpayers liable to annual declaration can benefit from tax deduction according to the articles 63/3 and 89/1 of Income Tax Law number 193. On the condition that the insurance is made by a pension or insurance company located or based in Turkey, wage earner or taxpayer liable to annual declaration can deduct 50% of the premiums paid for life insurance policies that belong to his or her own, spouse or young children or the total of the premiums paid for the personal insurance policies such as death, accident, health, disease, disability, motherhood, birth and education can be deducted from the tax provided that it does not exceed 15% of the wage earned in that month or annual amount of the minimum wage annually.
For this, the insured must submit the document indicating the premium he paid to his employer or to his accountant if he is self-employed.
The difference between the amount of tax calculated with this deduction and tax paid by the taxpayer in that year is deducted from the income tax that self-employed people would pay next year or paid in cash to wage earners via their employers.
If you are a wage earner or annual declaration based taxpayer, you can the premiums you paid for the personal insurance policies of yourself, your spouse and young children such as life, death, accident, health, disease, disability, unemployment, motherhood, birth and education from your taxes according to the clauses 63/3 and 89/1 of Income Tax Law with law number 4697. This way, your insurance premiums up to 15% of you monthly income (this amount cannot exceed annual amount of the minimum wage), depending on your tax bracket, can provide you profit from the very first day.Calculate your Tax Advantage