Government Expands Authority on Pension and Tax Regulations with New Legislative Amendments
Discover how new legislative amendments expand government authority on pension and tax regulations, impacting citizens and businesses.
The Official Gazette has released Law No. 7566, introducing significant changes to numerous tax laws and decrees. Among the most notable updates is the modification to the Individual Pension Savings and Investment System Law, specifically Annex 1, which governs the state contribution mechanism.
Under the revised legislation, the President now holds the power to adjust the state contribution rate — previously fixed at 30% — with the flexibility to increase it up to 50% or reduce it entirely to zero. This provision officially takes effect immediately as of today.
Revisions Affecting Social Insurance Contributions
According to Article 81 of the Social Insurance and General Health Insurance Law No. 5510, updates have been introduced to contribution rates. The employer’s contribution rate has been raised from 20% to 21%, while the employee’s contribution increases from 11% to 12%. Additionally, the upper limit on earnings subject to social insurance contributions is now expanded from 7.5 times to 9 times the base amount.
New Arrangements for Motor Vehicle Taxes and Service Fees
Regulations related to the Motor Vehicle Tax introduce a proportional fee structure of 2 per thousand (minimum 1,000 TL) for all initial registration and transfer activities. However, authorized dealers selling second-hand vehicles are exempt from these additional fees.
Adjustments to Real Estate Tax Provisions
Amendments within the Real Estate Tax Law impose a restriction on the increase of building and land tax values. For 2026, the taxable value cannot exceed twice the value set in 2025. Similarly, calculations for the years 2027 through 2029 will continue to follow this limit. The same cap will be applicable to all financial obligations, fees, and taxes derived from property valuations.
For the full legislative text and detailed provisions, you can visit the Official Gazette at the following link: https://www.resmigazete.gov.tr/eskiler/2025/12/20251219-1.htm.
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