Salary is a benefit of an employee which can be represented by money and which is paid against the service of the employee working under the specific organization of an employer.  

According to Article 84 of the Income Tax Law numbered 193, the salary incomes are generally taxed at the time of payment of the salary by employers to employees. An annual declaration is not submitted for the salary incomes that remitted by only one employer or which collected through deduction regardless of the amount of the relevant salary.  

However, the salaries which are earned through deduction (stoppage) from more than one employer are subjected to the declaration. For instance, in case an employee changes its job more than one time in the same year, he/she will be considered as being paid by more than one employer. Therefore, the total salary obtained from the second employers should be 34.000 TL. in sum for 2018 and 40.000 TL. in sum for 2019.  

To clarify; if an employee earns salary from two different employers during the same year; for instance, in the amount of 40.000 TL from the first employer and 36.000 TL. from the second employer, he/she must submit an annual written declaration in accordance with the Tax Law since he/she has earned an income more than 34.000 TL. from the second employer on annual basis. For another instance, if an employee who earned a salary for an amount of TL 300.000 from the first employer and 15.000 TL from the second employer annually in 2019, he/she shall not be obliged to submit an annual written declaration since the salary amount earned from the second employer is less than 40.000 TL.  

We would like to underline that; employee has a right to determine which salary is earned from the first employer at his own discretion. In other words, employee is free to consider the highest salary income as the salary obtained from the first employer and consider the salary or total salaries which are less in amount as the salaries obtained from the second employer if he/she is subject to taxation through deductions.  

In case of failure in submission of such declarations although being subject to above detailed taxation, tax penalties can be implemented to such defaulting employees. Hence, in order to prevent such tax penalties, it is necessary to contact with the relevant Tax Office following the delivery of notice of the related Tax Office and to fulfil the requirement of the Tax Procedure Law. In case a written declaration is submitted in accordance with the repentance provisions of the Tax Procedure Law, no tax penalty is accrued, and it will be enough to pay the additional tax with its interest of default. However; if this condition is determined by the tax administration before application of the employee, such defaulting employee shall be subjected to penalty in addition to the tax amount to be paid.