Turkey is among the countries that has the earliest retirement age, while Greece has the oldest.

Retirement Ages in Europe

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Protests are being held in about 30 Russian cities to express anger at proposals to raise the pension age.

The plan, announced the day the football World Cup began, would see the age raised gradually from 60 to 65 for men, and from 55 to 63 for women.

The government says the changes are needed to cope with a shrinking workforce having to provide for an increasing number of retirees.

But unions warn many people will not live long enough to claim a pension.

Russian men have a life expectancy of 66 while for women it is 77, the World Health Organization says.

An estimated 3,000 people turned out in the Siberian city of Omsk and there have been smaller protests elsewhere.

They included supporters of leading opposition figure Alexei Navalny but also trade unionists, Communists, and nationalists.

Writing on Instagram, Mr. Navalny said the pension age hike was a “true crime”.

“It is a common robbery of tens of millions of people under the guise of ‘much-needed reform’,” he said.

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Source: BBC
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult with an expert before taking a decision based on the information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Article 14 of the Labor Law numbered 1475 – If labor agreement of employees who are subjected to this law is terminated;
1. Because of reasons except from ones stated in clause II of article 17 of this Law;
2. (By the employee) in accordance with article 16 of this Law;
3. Because of military service;
4. Because of old age, retirement or disabled pension or in order to get lump sum payment from their own legal institutions and funds;
5. If an employee leaves his/her job willingly, by fulfilling insurance period and days for premium payment in order to get old age pension according to some conditions except from estimated ages; and if a woman willingly terminates her labor agreement within one year after the date of marriage or an employee passes away, the employer should pay seniority indemnity for each year, during when labor agreement has been active since the beginning of the employment. That amount should be 30-day fee for each year.

Article 25 of the Labor Law numbered 4857 – (II) – The situations and similar conditions that are against good will and ethics are indicated below;
a) When employee misleads his/her employer by telling nonrealistic data and words, by claiming that he/she has required qualifications for the important issues of the business even though he/she does not possesses required qualifications.
b) When employee says or acts against one of employer’s family members’ honor and reputation or gives unfounded notification and defames his/her employer.
c) When employee abuses another employee(s) in the office.
d) When employee teases his/her employee or one of employer’s family members or other employee(s) and when employee come at work woozily or by getting drugged and when he/she uses these kinds of drugs.
e) When employee acts against integrity and loyalty, like breach of faith, robbery, revealing employer’s trade secrets.
f) When employee commits a crime in the office and receives imprisonment more than 7 days (however, the sentence shouldn’t be postponed.)

Source: Labor Law

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

2- IN CASE OF THE DEATH OF AN INSURED EMPLOYEE, TO WHOM SHOULD LUMP SUM PAYMENT BE MADE?
In case of the death of insured employee, lump sum payment should be made to beneficiaries if employee’s beneficiaries do not have a right to get widow’s pension because insured employee does not fulfill number of days for premium payment and/or insurance period.

3- IN AN EMPLOYEE LEAVES HIS JOB IN ORDER TO RECEIVE LUMP SUM PAYMENT, WILL HE/SHE HAVE A RIGHT TO GET SENIORITY INDEMNITY IN TURKEY?
If an employee leaves his job in order to receive lump sum payment, he/she will have a right to get seniority indemnity.

Because it is considered that it is a valid reason to leave the job in order to receive lump sum payment in line with article 14 of the Labor Law numbered 1475.

Source: Labor Law

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Furthermore, in order to tax income resulting from commercial and industrial activities there has to be continuity in performing these activities. In other words, incidental activities in that nature are not treated as commercial or industrial activities and therefore, the PIT Law regulates these activities as the other income and earnings. The PIT Law does not list each commercial and industrial activity and only refers to the Turkish Commercial Law for the scope of these terms. However, several activities are listed namely for clarification in Article 37.

These are as follows:
– Operating mines, stone and lime quarries, extraction of sand and pebbles, operations of brick and tile kilns,
– Stock brokerage,
– Operating private schools, hospitals and similar places,
– Regular operations of sale, purchase and construction of real estate,
– Purchase and sale of securities on someone’s behalf and on a continued basis,
– Fully or partly sale of land which has been obtained by purchase or barter and subdivided within 5 years of its date of purchase and sold during this period or in subsequent years,
– Earnings from dental prosthesis.

Basically, the taxable income of a business enterprise is the difference between its net assets at the beginning and at the end of a calendar year.

Two methods are used to compute business profits: Lump-sum basis and actual basis.
In the former method, the PIT Law specifies estimated business profits for taxpayers who are qualified for such treatment according to the relevant provisions of the Law. The main assumption is that those taxpayers specified by the Law have difficulty to keep accounting books and to determine the income on the actual basis. Therefore, their income taxes are assessed on their estimated profits determined by the Law.

In the latter method business profits is determined on the actual basis: Taxpayers are required to keep accounting books to record their actual revenues and expenses which occur within the calendar year. In general, business related expenses paid or accrued related to business are deducted from revenues.

Expenses to be deducted:
In order to determine net amount of business profits on the actual basis, the following expenses may be deducted from revenues:
– General expenses made for earning and maintaining business profit,
– Food and boarding expenses provided for employees at the place of business or in its annexes,
– Expenses for medical treatment and medicine,
– Insurance and pension premiums,
– Clothing expenses paid for employees,
– Losses, damages, and indemnities paid based upon written agreements, juridical decrees, or by the order of law,
– Expenses for travel and lodging relevant to the business,
– Expenses for vehicles which are part of the enterprise and used in the business,
– Taxes in kind such as building, and consumption, stamp and municipal taxes and fees and charges, related to the business,
– Depreciations set aside according to the provisions of the Tax Procedure Law,
– Payments to the unions,
– The contribution payments paid by the employers to the retirement system on behalf of the wage earners. (Total contribution payments paid to the individual retirement system by the employers and the wage earners and considered in the determination of tax base, shall not exceed the rate and limits indicated in paragraph (3) of first subsection of Article 63 of the PIT Law),
– The production cost of foodstuff, cleaning, clothing and heating supplies donated to the charity and foundations operating to help the poor, within the procedures and principles set out by the Ministry of Finance.

Payments which are not accepted as expenses:
Those payments listed below are not considered as deductible expenses;
– Funds withdrawn from the enterprise by the owner or by his spouse or children, or other assets in kind acquired by them,
– Monthly salaries, wages, bonuses, commissions and compensation paid to the owner of the enterprise, to his spouse, or his minor children,
– Interest on the capital invested by the owner of the enterprise,
– Interest based on the current account of the owner of the enterprise, his spouse, his minor children including interests on all form of receivables,
– Excluding the transactions mentioned in paragraphs 1 and 4, in case the entrepreneur purchases or sells commodities or services based on the charges or prices he determines with the associated bodies contrary to the principle of conformity with the market rates, the differences between the charges or prices in conformity with the market rates and those applied by the entrepreneur that materialize to the disadvantage of the enterprise are considered to have been withdrawn from the enterprise,
– All fines and tax penalties as well as indemnities arising from unlawful actions. Indemnities incurred as penalty clauses of contracts shall not be considered indemnities of a punitive nature,
– 50% of the advertising expenses for all kind of alcohol and alcoholic beverages, tobacco and tobacco products (current rate has been reduced to 0% by a Governmental Decree. The Council of Ministers shall be authorized to raise this rate up to 100% and reduce it to 0%),
– Depreciation and expenses of motor-driven sea crafts such as yachts, cutters, boats, speed boats and aircrafts such as airplanes and helicopters acquired by renting or registered in the establishment not related to the main field of operations of the enterprise,
– Expenditures related to indemnities paid against material and moral damages arising from acts through press or radio and television broadcasts.

Source: Revenue Administration

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

There are two types of termination for an employment contract:

1) Termination with notification
Both the employee and the employer may terminate an employment contract concluded for an indefinite period based on the notification periods indicated in the above table. The party who does not abide by the rule to serve notice shall pay compensation covering the wages which correspond to the notification period in order to terminate the employment contract.

2) Termination of an employment contract before the end of the contract period or before the notification periods stated above, based on justifiable and rightful reasons stated in the Labor Law

Both the employer and employee have the right to terminate an employment contract before its expiry or without having to comply with the prescribed notification periods, in the following cases:

• Reasons of health
• Cases arising from immoral, dishonorable or malicious conduct or other similar behavior
• Force majeureSeverance Pay
  An employee who quits satisfying the conditions indicated in the Labor Law or whose employment contract is terminated by the employer must be compensated with a severance pay to be calculated based on the employees’ seniority at the work place. This indemnity pay is calculated on the basis of the last thirty days’ gross wage per year of the employment contract from the commencement date of employment. The thirty days’ payment per year of employment may not exceed the upper limit determined semi-annually. However, severance pay may be agreed to be paid at an amount higher than the limit indicated above in case there is a provision in the employment contract.
  The reasons on the basis of which employees are entitled to receive severance pay are as follows:
  • Leaving the workplace due to the compulsory military service (for males)
  • Retirement (in order to receive old age, retirement pension or disability allowance from the relevant insurance institutions)
  • Resignation of the employee after completing 3,600 premium days and 15 years of insurance period (in case of fulfillment of retirement conditions except the age limit and resignation with the submission of the document from the Social Security Institution indicating the fulfillment of retirement conditions, excluding the age limit, to the employer)
  • Voluntary termination by female employees within one year following the date of marriage
  • Death of the employee
  • Termination of the employment contract not based on a valid reason listed in the Labor Law by the employer and termination of the employment contract by the employer with valid a reason

  Job Security
  According to Labor Law, in case the employment contract is terminated by the employer, it is required that the underlying reason of this termination be notified to the employee, and the reason of termination be valid. The employee has the right to file a lawsuit in Labor Court within one month from the date of notification of termination. In the lawsuit to be filed, liability of proving that termination is based on a valid reason belongs to the employer, and if the employee claims that termination is due to another reason, he/she is obligated to prove this claim. In case the court decides that the termination is invalid and the employee is to be reemployed, and if the employee does not apply to the employer within ten work days from the date of notification of the decision to him/her, termination executed by the employer is deemed as a valid termination, and employer is only held responsible for the legal consequences.

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.