How Are Expenses and Per Diems Managed in Turkey?

Modified on: Fri, 21 Feb, 2025 at 2:51 PM

When employees travel for business purposes, they are entitled to claim certain expenses and per diems to cover their costs. These claims must comply with Turkish tax regulations and company policies to ensure accuracy and transparency.

Expense Claims

Receipts

To claim business expenses, employees must provide valid proof of expenditure. According to the Turkish Tax Procedure Law (Vergi Usul Kanunu), each receipt must include:

The supplier's name and address
The date of the transaction
A description of the goods or services provided
The total amount paid

All receipts must be clear, complete, and accurate. Employees should ensure their receipts meet these requirements to facilitate a smooth reimbursement process.

Mileage Claims

Employees who use their personal vehicles for business travel can claim mileage expenses. The Turkish Revenue Administration (Gelir İdaresi Başkanlığı) provides mileage rates based on the type of vehicle used. Employees must maintain a detailed mileage log, recording:

The date of each journey
The purpose of the trip
The start and end locations
The total kilometers traveled

A well-maintained log is essential for substantiating mileage claims and ensuring compliance with tax regulations.

Per Diems and Business Travel Rates

Per Diems

For employees traveling within Turkey, the per diem rates are set by the government and vary depending on the employee's position and destination. These per diems cover expenses such as meals, lodging, and incidentals. Employees should refer to the official government per diem rates before submitting claims.

As of January 1, 2025, the daily exemption amount for food allowance has been determined as 240 TL. This amount is tax-exempt. Companies can set a higher meal allowance if desired, but they must bear the tax on the excess amount. Employees who receive meal allowances must also document the number of working days they receive this amount.

Meal Allowances

Meal allowances depend on the duration of the business trip and are subject to specific limits. The Turkish government sets daily meal allowances based on:

The length of the employee’s absence from their primary workplace
The destination and nature of the trip
Company-specific policies on reimbursable meal costs

Receipts must be submitted for all meal expenses unless covered under a fixed per diem allowance.

Restrictions on Per Diem Claims

Employees cannot claim per diem allowances in the following situations:

No actual expense is incurred (e.g., no meal or accommodation was paid for).
Meals are taken at home or provided free of charge during an event, conference, or training session.
Accommodation is covered directly by the company.
Alcoholic beverages are included in the claim, except in cases of special invitations and business meals.

Vendor Information

Horizons does not require vendor details on receipts submitted for expense claims, but all other details must comply with Turkish tax regulations. Employees should verify that their receipts contain the necessary information to avoid delays in processing.

Best Practices for Expense Claims

To ensure a smooth expense reimbursement process, employees should:

Collect and store receipts that meet Turkish tax requirements.
Maintain accurate logs for mileage and other travel-related expenses.
Check the applicable per diem rates for both domestic and international travel.
Submit claims promptly to avoid processing delays.

Find more information about the business expense amounts on a country level in the find attached publication by the Turkish Chamber of Financial Advisors.

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