Withholding Tax And Calculation Method

WITHHOLDING TAX AND CALCULATION METHOD
Withholding tax and calculations are carried out depending. On the rates determined annually in an up-to-date manner and taking into account the gross wage. The type of withholding tax is also taken into account. When determining the method used in the calculation of withholding tax. The deduction rates applied in wage and rent withholding are different from each other. For this reason. The deduction that is considered. To be made is also shaped depending on the ratio. The deduction rate that must be applied in rent withholding is 20%. Accordingly, a withholding deduction can be reached by calculating 20% of the gross rental amount. For example, in a situation. Where the gross rental value is TL 2000, TL 400, which is 20% of the price, is paid to the tax administration as a withholding deduction. While the remaining TL 1600 from the deduction remains to the owner of the property as a net rental fee.

In wage withholding. The collection process is carried out on the remaining. Amount after the SGK deduction is applied on the gross price. At this point, the rates determined depending on the tax tariff determined every year are applied on income tranches. in the 2022 tax tariff, a tax deduction of 15% is carried out for the income bracket up to TL 32,000 and 40% for incomes higher than TL 880,000.

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