The 2024 tax on a vehicle with a Motor Vehicle Tax of 1,479 lira in 2023 increased to 2,343 lira, the fee for 1-year passports increased to 2,396.60 lira, and the class B driver's license fees increased to 3,945.40 lira. The fee for mobile phones brought by passengers also increased from 20 thousand lira to 31 thousand 692 lira.
The Inheritance and Transfer Tax Law General Communiqué, Motor Vehicle Tax General Communiqué, Fees Law General Communiqué and Income Tax General Communiqué of the Revenue Administration of the Ministry of Treasury and Finance entered into force after being published in yesterday's duplicate issue of the Official Gazette.
Accordingly, the Ministry of Treasury and Finance announced the taxes, fees and other fixed amounts that will be applied in 2024. The revaluation rate for 2023 was 58.46 percent and was announced in November with the Tax Procedure Law General Communiqué.
While some taxes and fees have been increased at the rate of revaluation, effective from the new year, tariffs, especially the income tax tariff, and exemption amounts that taxpayers will benefit from have also been determined by relevant regulations.
Fixed limits and amounts included in the Income Tax Law were increased in proportion to the revaluation. With the published notification, the income tax tariff to be applied in 2024 was determined.
The first tranche of the income tax tariff to be applied in 2024 was increased from 70 thousand lira to 110 thousand lira, the second tranche from 150 thousand lira to 230 thousand lira, the third tranche from 370 thousand lira to 580 thousand lira, and the fourth tranche from 1 million 900 thousand lira to 3 million lira.
For those earning wage income, the third slice, which is 550 thousand liras, will be applied as 870 thousand liras. According to the new tariff, whose first income bracket starts from 110 thousand liras, all income taxpayers, especially wage earners, will pay taxes from the upper brackets later.
MINIMUM WAGE INCREASE IS ALSO REFLECTED IN INCOME TAX EXEMPTION
The 49.1 percent increase in the minimum wage was also reflected in the Income Tax and Stamp Tax exemption, reducing the tax to be paid by wage earners. Since the minimum wage is tax-free, all wage earners will not pay 37 thousand 126.92 lira Income Tax and Stamp Tax in 2024.
In addition, the daily food allowance exemption amount, which was 110 lira, increased to 170 lira, and the travel allowance exemption amount, which was 56 lira, increased to 88 lira. Thus, monthly food allowance of 4 thousand 420 lira and transportation allowance of 2 thousand 888 lira can be paid to employees as tax exemption.
EXCEPTION AND DISCOUNT AMOUNTS INCREASED AT THE RATE OF REVALUATION
The exemption and discount amounts benefited by many taxpayers, regulated in terms of income elements in Income Tax, were also increased in proportion to the revaluation.
The exemption amount of 21 thousand lira in rental income is reduced to 33 thousand lira, the exemption amount of 55 thousand lira in capital gains is increased to 87 thousand lira, the exemption amount of 129 thousand lira in incidental earnings is increased to 200 thousand lira, the declaration limit for movable and immovable capital gains that are not subject to withholding and exemption is 13 thousand lira. It went up to a thousand liras.
The amounts that can be deducted as expenses for passenger cars have also increased. The monthly rental fee that can be considered as an expense for passenger cars has been increased from 17 thousand lira to 26 thousand lira, and the limit of the acquisition fee that can be written off as an expense through depreciation has been increased from 950 thousand lira to 1 million 500 thousand lira.
MTV, PASSPORT, DRIVING LICENSE AND MOBILE PHONE TAXES
Motor Vehicle Tax (MTV) was increased by 58.46 percent. The 2024 tax of a vehicle with a Motor Vehicle Tax of 1,479 lira in 2023 will be 2 thousand 343 lira, and the 2024 tax of a vehicle with a Motor Vehicle Tax of 3 thousand 323 lira will be 5 thousand 265 lira. For electric motor vehicles, a tax of one quarter of the tariff will be paid.
Passport and driving license fees also increased. According to the General Communiqué on the Fees Law, the fee amount for passports with a validity of 1 year will be 2 thousand 396.60 liras, for passports with a validity of 3 years it will be 5 thousand 558.30 liras and for those with a validity of more than 3 years it will be 7 thousand 833 liras. While the class A driver's license fee will be determined as 1308.40 lira in 2024, this amount will be applied as 3 thousand 945.40 lira for class B driver's license fees.
The fee for mobile phones brought by passengers increased from 20 thousand lira to 31 thousand 692 lira.
Irregularity and special irregularity penalties have also been updated. The penalty for not submitting invoices and receipts has increased to 3 thousand 400 liras. Starting from 2024, the invoice issuance limit has been increased from 4 thousand 400 lira to 6 thousand 900 lira.