How Are Expenses and Per Diems Managed in Turkey?

Modified on: Mon, 22 Sep, 2025 at 7:18 PM

Horizons Turkey supports employees in claiming legitimate business expenses and per diems incurred during work-related travel. All claims must comply with Turkish tax regulations and company policies to ensure accuracy, transparency, and timely reimbursement.

Expense Claims

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

Supplier’s name and address
Date of the transaction
Description of goods or services provided
Total amount paid

Receipts must be clear, complete, and accurate. Incomplete or illegible receipts may delay reimbursement.

Mileage Claims

Employees using personal vehicles for business travel can claim mileage expenses. The Turkish Revenue Administration (Gelir İdaresi Başkanlığı) provides mileage rates based on vehicle type.

To support mileage claims, employees must maintain a detailed mileage log including:

Date of each journey
Purpose of the trip
Start and end locations
Total kilometers traveled

A well-maintained log is essential for compliance and reimbursement.

Travel & Per Diems

Travel Expenses

Air Travel: Economy class is standard unless otherwise approved. Airline e-ticket + invoice required.
Bus/Train/Tram: Tickets + invoices (if available) required.
Taxi/Cab: Receipts (fiş or invoice) required.
Rental Cars: Invoice must show company name + tax ID. Fuel and tolls reimbursed with receipts.

Parking & Tolls

Parking fees and tolls (HGS/OGS) are reimbursable if related to business travel.
If using company-rented vehicles, tolls are billed directly.
If using personal or external rentals, submit tolls and parking fees as separate expenses with receipts/invoices.
Parking fines (e.g., illegal parking) are not reimbursable.

Per Diems

Per diems cover meals, lodging, and incidentals.
Rates vary by position and destination.
Refer to official government rates before submitting claims.

2025 Per Diem Rates

Domestic travel: TRY 600/day (approx.)
International travel: USD 50–200/day depending on country
Food allowance exemption: TRY 240/day (tax-exempt)
- Higher allowances are taxable on the excess.
- Employees must document the number of working days they receive this amount.

Meal Allowances

Based on:
- Duration of business trip
- Destination and nature of travel
- Company-specific policies
Receipts required unless covered by fixed per diem.

Restrictions on Per Diem Claims

Per diems cannot be claimed when:

No actual expense is incurred
Meals are taken at home or provided free (e.g., during events)
Accommodation is covered directly by the company
Alcoholic beverages are included (except for business meals or special invitations)

Invoicing & Documentation

Required Documentation

To ensure tax-free reimbursement, invoices must include:

Supplier’s tax ID
Horizons Turkey legal name and tax number
Date, amount, and VAT breakdown

Invoice Requirements

Invoices must be issued to Horizons Turkey.
Small cash receipts (fiş) are acceptable for amounts under TRY 4,400 (2025 limit).
Formal invoices are required for amounts above TRY 4,400.

Important Considerations

Receipts must be in Turkish or translated if foreign
Expenses must be incurred directly for business purposes
Payments should be made via bank transfer or company card when possible
Expenses must be reported within the fiscal year; they cannot be carried forward

Reimbursement & Taxability

Tax-Free Reimbursable Expenses

With proper documentation, the following are tax-free:

Travel (flights, trains, taxis, car rentals, fuel)
Accommodation (hotels with invoice)
Business meals (with invoice showing attendees and purpose)
Office supplies, work equipment, internet/phone bills (if business-related)

Entertainment & Gifts

Client meals & entertainment: Deductible with invoice stating business purpose
Gifts: Deductible if modest and reasonable; luxury/personal gifts may be taxable
Team gatherings: Deductible if clearly business-related

Health & Wellness Expenses

Not tax-free unless provided as a company-wide benefit
Individually reimbursed wellness expenses are taxable income
Exceptions: Occupational health services (e.g., medical checks, ergonomic equipment) are tax-free

VAT (KDV)

VAT (currently 20%) applies to most goods/services
Employers can reclaim VAT if invoices are in the company’s name
VAT is included in reimbursable expenses; Horizons handles VAT in accounting

Best Practices for Employees

To ensure smooth reimbursement:

Collect and store receipts that meet Turkish tax requirements
Maintain accurate logs for mileage and travel-related expenses
Check applicable per diem rates before submitting claims
Submit claims promptly to avoid 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.

Attachments (1)

pdf

harcirah-2025-i.pdf
771 KB

In this article...

Turkey