Help & Advice

How much is the tax advantage and how can benefit from it?

All you have to do is to submit your payment documents  to your accountant if you are subject to income tax based on declaration,  or to the accounting department of the company you are working at if you are a salaried employee.

In the phase of payment of the contributions;

  • The contributions paid in the Private Pension System for salaried employees are tax deductible, provided the amount does not exceed 10% of the salary earned in the month of the payment, and annually does not exceed the annual minimum wage.
  • The contributions paid in the Private Pension System for taxpayers who are subject to income tax based on declaration are tax deductible, provided the amount does not exceed 10% of the declared income, and annually does not exceed the annual minimum wage.
  • For the contributions paid in the Private Pension System by employers for their salaried employees, the portion that does  exceed 10% of the employee's gross income, and annually does not exceed the annual minimum wage can be recorded as direct expense without associating it with payroll. (The Council of Ministers is entitled to increase the limits up to two fold.)

In the phase of receiving of payments from the Private Pension System;
For payments made to individuals who have qualified fore retirement through the Private Pension System, and who had to leave the system for compulsory reasons such as death, disability or liquidation,  25% of the savings are tax-exempt. The remaining balance is paid to the participant after a 5% stoppage is applied.
Additionally;
A. The payments made to individuals who leave without making contribution payments for 10 years are subject to a 10% income tax stoppage.
B. The payments made to individuals who have made contribution payments for 10 years, yet left before qualifying for retirement are subject to a 10% income tax stoppage.

  1. How often can I change the distribution of the contribution amounts among the funds within the pension plan?

    In the Private Pension System, there are pension plans as products, and pension investment funds within each pension plan.

  2. Who is Garanti Asset Management?

    Operating since 1997, Garanti Asset Management is a 100% subsidiary of Garanti Bank A.Ş. The company provides investment fund management and corporate portfolio management services.

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