THE DRAFT LAW ON PREMIUM INCENTIVES GIVEN BY NEW OMNIBUS BILL TO THE EMPLOYERS WHO CREATE ADDITIONAL EMPLOYMENT
The draft Law amendments in Tax Laws along with some other laws and statutory decrees (“Draft”) has been presented to Turkish Grand National Assembly on 02.02.2018. The Law has not been ratified and came into force yet.
The draft Law brings certain financial support to the employers who create additional employment. These incentives have been regulated in the Article 44 of the Draft Law and the provisional Articles 19,20 and 21 which were added to Unemployment Insurance Law No.4447 within scope of this article.
Incentives on social security support contribution, stamp tax and income tax withholding given to private sector employers for the laborers who are employed between 01.01.2018 – 31.12.2020 for a period of 12 months, are amongst the changes made through these provisional clauses.
This premium support to be provided to the employers, through the provisional Article 19 shall be given for 18 months, for the female employees older than 18 years, male employees who are between 18-25 years old as of the date of recruitment and for the disabled employees, until December 2020.
However, if monthly premiums are not paid regularly and the service documents related to the workplace, withholding tax returns and premium service declarations are not providedwithin the legal periods, these incentives shall be cancelled.