- Tips received via POS devices or mobile applications are considered as wages and are subject to income tax withholding, regardless of payment method.
- For corporate tax, tips collected separately from the service price can be recorded as income and payments to employees can be deducted as wage expenses.
- Tips are eligible for minimum wage and stamp tax exemptions if conditions are met, and the payment method does not affect this.
- For VAT, tips collected separately from the service price are not subject to VAT; if included in the service price, they are subject to VAT.
Source: alomaliye.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Turkey"
- Tax-Free Sales to Non-Residents Qualify as Exports: 5-Point Corporate Tax Reduction Possible
- Turkey: Self-Employed Professionals Exempt from e-Invoice if Issuing e-Self-Employment Receipts
- Turkey Sets 2026 Minimum VAT Refund Threshold at 164,000 TL for Reduced-Rate Goods and Services
- Turkey Updates E-Invoice and E-Archive Standards, Mandatory from February 2026
- Turkey Updates E-Invoice System: New Technical Requirements Mandatory from February 2026
