How much of the daily cash meal allowance for 2024 is exempt from SSI premiums?
Employers are exempt from SGK premiums for the portion of travel and meal allowances paid to employees up to 23.65% of the daily gross minimum wage.
THE DAILY MEAL ALLOWANCE EXEMPTION FOR 2024 IS 170 TL + 10% VAT.
(The daily meal allowance exempt from income tax on the payroll for 2024, as announced in the Official Gazette dated December 30, 2023, numbered 32415, regarding the 193-GVK Notification, has been increased from 110 TL + VAT for 2023 to 170 TL + 10% = 187 TL for 2024.)
A) INCOME AND STAMP TAX EXEMPTION
With Law No. 7420, effective from December 1, 2022, the benefits provided in the form of cash meal allowances to employees when meals are not provided at the workplace or its premises have also been included in the exemption scope.
To be exempt from income tax on cash meal allowances paid to employees:
a) Meals are not provided by employers at the workplace or its premises,
b) The daily meal allowance does not exceed 170 TL + 10% VAT,
c) It relates to the actual days worked.
THE DETERMINED DAILY MEAL ALLOWANCE IS EXEMPT FROM INCOME TAX.
For example, a meal allowance payment of (170 TL x 21 days =) 3,570 TL for an employee who works 21 days will be entirely exempt from income tax.
However, if the meal allowance payment is 200 TL, then (200 TL x 21 days) the meal allowance of 4,200 TL will have 3,570 TL + VAT exempt from income tax, and the remaining 4,200 TL – 3,570 TL = 630 TL will be subject to income tax.
On the other hand, the total amount of meal allowances given to employees in cash by employers must be shown on the payroll, regardless of whether it is within the exemption scope. Payments for meal allowances under exemption will not be included in the tax base.
THE DETERMINED DAILY MEAL ALLOWANCE IS EXEMPT FROM STAMP TAX.
Additionally, the portion of the payments made by employers to employees, as stated in the documents, is also exempt from stamp tax.
B) THE LIMIT OF DAILY SGK EXEMPTION FOR MEAL ALLOWANCES IS DIFFERENT.
It should be noted that after the exemption introduced by Law No. 7420, the “Regulation on Amendment of Social Insurance Transactions” was published in the Official Gazette dated November 11, 2022. Following that, the SGK General Letter dated November 23, 2022, numbered 2022/20, announced that all payments made to insured persons or to third parties on behalf of insured persons under the name of meal allowances will be exempt from the base earnings of the daily gross minimum wage at the rate of 23.65%.
Accordingly, between January 1, 2024, and December 31, 2024, the amount of meal allowance exempt from the base earnings of insured persons under 4/1-(a) will be:
666.75 TL (daily minimum wage) x 23.65% = 157.69 TL (Daily). SGK premiums will be calculated over 170 TL – 157.69 TL = 12.31 TL.
C) Exemption Application in Benefits Provided to Employees through Meals
In benefits provided to employees without cash payments for meals:
a) The benefits provided to employees by employers at the workplace or its premises are not limited to any amount.
b) When meals purchased from suppliers providing ready-made meal services are given to employees at the workplace or its premises, the benefits are not limited to any amount.
c) In cases where meals are not provided at the workplace or its premises and services are provided by businesses offering meal services, the payments made to these businesses for each employee for days worked not exceeding 170 Turkish Liras for a daily meal allowance.
ç) In cases where meals are not provided at the workplace or its premises and the meal service is provided by loading onto meal cards or purchasing meal vouchers from businesses providing meal card and/or meal voucher services, the portion of the daily meal allowance for each employee for days worked not exceeding 170 Turkish Liras.
These are exempt from income tax.
Explanations regarding the implementation of these exemptions are provided in the Income Tax General Notification (Series No: 186) published in the Official Gazette dated July 26, 1995, numbered 22355.
Source: Revenue Administration
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