On October 15, 2009 the Constitutional Court issued a verdict
with far-reaching influence over income tax payers. The verdict
includes a provision of Income Tax Law (Official Gazette
January 6, 1961 No. 10700) regulating the top tax tranche of
35%.
Considering that the Court granted a six-month grace period
prior to enforcement as of the publication of the verdict in the
Official Gazette as of January 8, 2010 - leaving room for
Parliament to enact a new regulation on the issue by July 8, 2010 -
annual income of TL50,000 minimum will still be subject to 35%
taxation starting from the TL11,250 threshold until the end of the
grace period.
On the other hand, the good news for both individuals and their
employers is that within 30 days of filing their monthly payroll
taxes (from October 15, 2009 onwards), they can reclaim the 8%
difference between the annulled 35% bracket and the next bracket of
27% which in return leaves the door open for the chance of a refund
by the
