The communiqué issued by the Turkish Ministry of Treasury and Finance aims to clarify the procedures and principles for implementing amendments to specific articles of the Income Tax Law, specifically concerning tax exemptions on benefits received through stock options provided to employees. It outlines the conditions under which these benefits, given free or at a discounted rate, are exempt from income tax if they do not exceed an employee’s annual gross salary. The document also details the consequences if these stock options are sold within specific periods, and it defines the responsibilities of employers in calculating and reporting the taxable value of the benefits.
Key points include:
- Exemptions apply to stock options provided by qualified tech startup employers.
- The value of the stock benefits is tax-exempt up to the employee’s annual gross salary.
- Penalties and tax collection procedures are outlined for early disposal of stock options.
- Employers are responsible for accurate reporting and documentation.
The rules took effect on August 2, 2024.
Source: Official Gazette
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