New Income Tax-Exempt Per Diem Rates is Effective from 1 July 2026 in Turkey.
The Turkish Ministry of Treasury and Finance has announced the updated business travel allowance thresholds applicable between 1 July 2026 and 31 December 2026. These revised limits determine the maximum daily travel expenses that employers may reimburse without triggering Turkish income tax, provided the applicable legal conditions are met.
For companies employing staff in Türkiye, these revised figures are particularly important when reviewing payroll policies, travel expense procedures and employee reimbursement practices.
At Azkan Group, we help international employers ensure that travel reimbursements remain fully compliant with Turkish payroll and tax legislation.
Understanding Tax-Free Business Travel Allowances
When an employee travels for business purposes, Turkish employers may reimburse accommodation, meals and other eligible travel expenses through daily allowances (per diems).
Provided that these payments remain within the official limits established by the authorities and satisfy the relevant legal requirements, they are generally exempt from Turkish income tax. Amounts exceeding the authorised thresholds may become taxable and therefore require payroll treatment.
Revised Domestic Daily Allowances
The revised domestic limits apply according to the employee’s monthly gross salary.
For the second half of 2026, the highest income bracket may receive a tax-exempt domestic daily allowance of TRY 900, while lower salary bands benefit from progressively adjusted amounts down to TRY 850 per day.
Employers should therefore verify that their internal travel policies reflect the updated salary brackets before processing expense claims.
Overseas Business Travel Rates
Separate exemption limits apply to international business trips.
Unlike domestic travel, overseas daily allowances vary according to:
- the destination country;
- the currency prescribed by the Turkish authorities;
- the employee’s salary category.
For example, the maximum tax-exempt allowance differs significantly between destinations such as the United States, Germany, France, the United Kingdom, Japan or Switzerland because each country has its own official rate.
This approach recognises differences in international travel costs while maintaining a standardised tax framework.
Why These Updates Matter
Companies with employees travelling regularly inside or outside Türkiye should update their internal reimbursement procedures without delay.
Failure to apply the correct exemption thresholds may lead to:
- payroll adjustments;
- additional income tax liabilities;
- social security implications;
- accounting corrections;
- potential issues during tax audits.
Regular reviews of travel expense policies therefore form an essential component of payroll compliance.
Practical Considerations for International Employers
Foreign companies employing staff in Türkiye often reimburse travel expenses using global corporate policies.
However, multinational policies do not automatically comply with Turkish legislation.
Before reimbursing business travel expenses, employers should verify:
- applicable domestic or overseas allowance limits;
- employee salary classification;
- documentation supporting the business trip;
- payroll treatment of any excess amounts;
- accounting records supporting reimbursement.
This helps reduce compliance risks while ensuring employees receive reimbursements efficiently.
How Azkan Group Supports International Businesses
Managing payroll compliance in Türkiye requires continuous monitoring of legislative developments.
Azkan Group assists international companies with:
- payroll outsourcing;
- Employer of Record (EOR) services;
- expense reimbursement policies;
- tax compliance reviews;
- HR administration;
- accounting support;
- employment law guidance;
- corporate compliance.
Our specialists continuously monitor regulatory updates so that clients remain compliant with the latest Turkish tax and payroll requirements.
The updated travel allowance thresholds applicable from 1 July to 31 December 2026 provide employers with revised tax-free reimbursement limits for both domestic and international business travel.
Companies operating in Türkiye should ensure that their payroll systems and expense policies reflect these changes in order to minimise tax exposure and maintain full regulatory compliance.
Frequently Asked Questions
When did the new travel allowance limits become effective?
The revised tax-exempt per diem amounts apply to business travel taking place between 1 July 2026 and 31 December 2026.
Are domestic and overseas allowances calculated differently?
Yes. Domestic allowances depend primarily on the employee’s salary bracket, whereas overseas allowances also vary according to the destination country and the official currency established by the Turkish authorities.
Can employers reimburse amounts above the official limits?
Yes, but any reimbursement exceeding the applicable tax-exempt threshold may become subject to income tax and other payroll obligations under Turkish legislation.
How can Azkan Group help?
Azkan Group advises foreign companies on payroll compliance, travel expense policies, tax-efficient reimbursement procedures, Employer of Record (EOR) services, accounting and HR administration, ensuring that employee expense management complies with Turkish regulations.
