The 35 percent rate was set as a result of legislation passed in 2006. The court ruled that the regulation hindered the fair distribution of the tax burden among taxpayers. With the court’s decision, workers will be able to appeal to receive backdated refunds for the difference in tax payments between 2006 and 2009.
Having ruled that the tax level should be revised to a “fair rate,” the court gave Parliament six months to implement the revision. Workers who have been paying 35 percent income tax since 2006 will have the opportunity to appeal to receive a refund on the 8 percent difference. Some large companies have reportedly started preparations to apply for tax refunds on behalf of their employees.
According to the court’s decision, a worker with a net monthly salary of TL 4,000 will receive some TL 2,000 in tax refunds for each year. The court cited an “extra tax burden on workers” in a statement concerning the decision, adding that the tax burden was not being shared fairly.
