What is an attendance fee?
A payment made, by general meeting resolution, to managers of a limited company or board members of a joint stock company for their management duties. For tax purposes it is salary.
Who pays and what is deducted?
| Situation | Social security | Income tax | Stamp duty |
|---|---|---|---|
| Shareholder manager / board member (insured under 4/b, Bağ-Kur) | Not deducted | Deducted (wage tariff, cumulative) | Deducted |
| Non-shareholder manager employed by the company (4/a) | Deducted | Deducted | Deducted |
The company withholds and pays these via the monthly withholding and premium return. The fee is deductible for the company if reasonable and based on a general meeting resolution.
Does the minimum wage exemption apply?
Yes, since the fee is salary. But the exemption can be used with one employer only: if the person earns a salary elsewhere and uses the exemption there, untick the exemption box.
Attendance fee or dividend?
The fee lowers the company's taxable income (25% corporate tax saving) but is taxed as wages for the shareholder (15%–40%). A dividend is first subject to 25% corporate tax and then 15% withholding. Which is better depends on the amount and the shareholder's other income. Dividend tax · Dividend calculator.
Example
Gross TRY 100,000, 4/b shareholder, exemption applied, January: income tax 15,000 − 4,211.33 = TRY 10,788.67; stamp duty 759 − 250.70 = TRY 508.30; net TRY 88,703.03. In December, the cumulative base reaches the 27% bracket and net falls to TRY 78,106.80.
Legal basis
Income Tax Law art. 61 (definition of wages), art. 23/18; Turkish Commercial Code art. 394 (payments to board members); Law No. 5510 arts. 4/1-b and 80.