| TAX CIRCULAR: 2026-99 | DATE: 22.07.2026 |
Following the Circular No. 5 dated 02.07.2026 by the General Directorate of Public Financial Management and Transformation of the Ministry of Treasury and Finance, the civil servant salary coefficients have been changed. In line with the new coefficients valid for the period of July 1, 2026 – December 31, 2026, the tax-exempt domestic, overseas, and TRNC daily allowance amounts that can be paid based on the gross salary levels of the personnel have been updated.
In order for the per diems paid to private sector employees to be exempt from income tax, the amount calculated based on the seniority and gross salary of the personnel must not exceed the highest amount given to a civil servant at the same salary level.
The tables regarding the new salary brackets formed after the coefficient changes and the tax-exempt daily allowance amounts to be applied are presented below.
1. Domestic Tax-Exempt Per Diem Rates (01.07.2026 – 31.12.2026)
| Gross Monthly Salary Bracket (TL) | Tax-Exempt Daily Allowance (TL) |
|---|---|
| 40,762.28 TL and above | 900.00 |
| Between 40,478.69 and 40,762.27 TL | 890.00 |
| Between 37,957.87 and 40,478.68 TL | 880.00 |
| Between 33,546.43 and 37,957.86 TL | 870.00 |
| Between 27,236.51 and 33,546.42 TL | 860.00 |
| 27,236.50 TL and below | 850.00 |
2. TRNC (Northern Cyprus) Tax-Exempt Per Diem Rates (01.07.2026 – 31.12.2026)
| Gross Monthly Salary Bracket (TL) | Tax-Exempt Daily Allowance (TL) |
|---|---|
| 40,762.28 TL and above | 2,005.00 |
| Between 40,478.69 and 40,762.27 TL | 1,765.00 |
| Between 27,874.59 and 40,478.68 TL | 1,527.00 |
| Between 27,236.51 and 27,874.58 TL | 1,285.00 |
| 27,236.50 TL and below | 1,045.00 |
3. Overseas Tax-Exempt Per Diem Rates (01.07.2026 – 31.12.2026)
In overseas per diem applications, the columns to be taken as reference according to the gross monthly amount of the personnel are as follows:
- 40,762.28 TL and above: Column II
- Between 40,478.69 and 40,762.27 TL: Column III
- Between 37,957.87 and 40,478.68 TL: Column IV
- Between 33,546.43 and 37,957.86 TL: Column V
- Between 27,236.51 and 33,546.42 TL: Column VI
- 27,236.50 TL and below: Column VII
(Column Amounts for Major Countries – In Relevant Currency)
| Country and Currency | Col II | Col III | Col IV | Col V | Col VI | Col VII |
|---|---|---|---|---|---|---|
| U.S.A. (USD) | 199 | 159 | 135 | 128 | 120 | 102 |
| Germany (Euro) | 176 | 141 | 119 | 113 | 106 | 89 |
| U.K. (GBP) | 127 | 100 | 86 | 82 | 76 | 65 |
| France (Euro) | 169 | 134 | 114 | 108 | 101 | 86 |
| Italy (Euro) | 162 | 130 | 111 | 104 | 98 | 82 |
| Netherlands (Euro) | 170 | 136 | 116 | 109 | 102 | 87 |
| Switzerland (CHF) | 286 | 229 | 194 | 183 | 173 | 145 |
| Other EU Countries (Euro) | 140 | 111 | 95 | 89 | 84 | 72 |
| Other Countries (USD) | 173 | 138 | 117 | 110 | 105 | 88 |
Important Considerations in Application
1. Seniority Pay Addition: When determining the tax-exempt per diem amount of a private sector employee, the seniority pay amount calculated based on the person’s seniority must be added to the gross salaries listed in the tables. Seniority pay is calculated with the formula (Years of Service x 20 x 1.575512). The calculation is made over a maximum of 25 years.
2. Taxation: Only a stamp tax of 0.759% is deducted from the daily allowances that do not exceed the determined limit. The exceeding amounts must be considered as net wages, grossed up, and subjected to income tax.
3. Exchange Rate: When accruing overseas daily allowances in TL, the foreign exchange selling rate announced by the Central Bank of the Republic of Turkey must be taken as a basis.
4. Accommodation (Lodging) Expenses: If the documented expenses paid for lodging abroad exceed 40% of the tax-exempt daily allowance amounts, 70% of the exceeding part can also be paid exempt from tax.
5. Actual Expense Method: If meal and accommodation expenses related to the travel are invoiced to the company and recorded as expenses instead of a daily allowance, the entire cash “per diem” amount additionally paid to the employee is considered as a taxable wage.
