New year, new costs: key tax, fee changes in Türkiye for 2025

Starting January 1, 2025, Türkiye will implement substantial increases in various taxes and fees, affecting a wide range of financial obligations. The adjustments, announced in the Official Gazette, are tied to the annual revaluation rate, which was set at 43.93% for 2024. These increases impact income taxes, vehicle registration fees, passport charges, and mobile phone registration fees for devices brought from abroad.

Income tax brackets adjusted for inflation

The income tax brackets for 2025 have been revised upward to reflect inflation and economic adjustments:

• First bracket: Increased from 110,000 TL to 158,000 TL.
• Second bracket: Adjusted from 230,000 TL to 330,000 TL.
• Third bracket: Raised from 580,000 TL to 800,000 TL.
• Fourth bracket: Increased from 3,000,000 TL to 4,300,000 TL.

Employers will also be able to pay higher tax-free allowances to employees:

• Daily meal allowance exemption increased from 170 TL to 240 TL.
• Daily transportation allowance exemption raised from 88 TL to 126 TL.

This translates to monthly exemptions of 6,240 TL for meals and 3,276 TL for transportation.

Vehicle registration fees and taxes surge

Motor Vehicle Tax (MTV) rates will rise in line with the revaluation rate:

• Vehicles with engine sizes up to 1,300 cc will see taxes increase from 3,359 TL to 4,834 TL.
• Vehicles with engine sizes between 1,301 cc and 1,600 cc will experience an increase from 5,851 TL to 8,421 TL.

Electric vehicles will continue to benefit from a reduced tax rate, paying only 25% of the standard fees.

Passport and driver's license fees raised

Passport and driver's license fees are set for substantial increases:

• 1-year passports: 3,449 TL.
• 3-year passports: 8,000 TL.
• Passports valid for more than 3 years: 11,274 TL.

Penalties and traffic fines also see hikes

Various fines and penalties are set to rise significantly:

• Failure to issue invoices or receipts: Increased to 14,000 TL for first offenses.
• Traffic violations:
  • Running a red light or using a phone while driving: 2,168 TL.
  • Drifting violations: 4,641 TL, up from 3,233 TL.
  • Fake license plates: 46,326 TL.
  • Driving under the influence: 9,268 TL.

Vehicle inspection fees have also been revised to 2,620 TL.

Driver's license fees will also be affected:

• A-Class license: 1,883 TL.
• B-Class license: 5,678.60 TL.

Mobile phone registration fee for imported devices

Individuals bringing mobile phones from abroad will face a significant rise in registration fees. The cost to register imported phones will jump from 31,692 TL to 45,614 TL, representing an increase of nearly 14,000 TL.

Increased allowances for disabled individuals

Tax exemptions for vehicle purchases by disabled individuals have also been updated:

• Vehicles for individuals with over 90% disability: Exemption limit increased from 1,591,020 TL to 2,290,200 TL.
• For individuals with under 90% disability, exemptions for modified vehicles also follow the same limit increase.

Exit fees for international travel

Citizens traveling abroad will face an increase in exit fees, which will rise from 500 TL to 710 TL.

Broader economic impact

These adjustments reflect broader economic trends and the need for increased revenue amid inflationary pressures. With these changes, taxpayers, businesses, and travelers will need to prepare for higher costs in 2025. The new rates underscore the government’s efforts to align fiscal policies with economic realities while maintaining revenue stability.

December 31, 2024 04:11 PM GMT+03:00