Having made a payment does not mean that the full amount can be deducted from the tax base. Education, health, insurance and donation payments are each subject to separate conditions that depend on who benefits, the supporting document, the common limit and whether income tax or corporate tax applies.
Education and Health Expenses under Income Tax: Conditions, Documents and the Common Limit
Not every education and health expense is deducted in full from the tax due. Qualifying expenses are deducted from income up to 10% of the income reported in the annual income tax return. The expense must be made in Türkiye, be supported by a suitable document and relate to the family members named in the law. The deduction does not create a separate right to a tax refund merely because an expense was made.
Legal Nature of the Deduction and How It Differs from Other Obligations
The education and health expense deduction is not a refund of the entire eligible amount by the tax office. An amount that meets the legal conditions is deducted from the tax base, within the limit set in the annual income tax return.
How Is the Single 10% Limit for Education and Health Expenses Calculated?
There is no separate 10% for education and another 10% for health. The eligible education and health expenses are combined and compared against one limit. The income used for the limit is the income declared before deductions and prior-year losses are subtracted under the relevant regulation. Expenses that cannot be deducted cannot be carried forward to the following year. [1; Income Tax Law Article 89/2]
For example, a person whose declared income for the calculation is 900,000 Turkish lira (TL) has eligible education expenses of 80,000 TL and health expenses of 70,000 TL, for a total of 150,000 TL in expenses. The deduction limit is 90,000 TL. The 60,000 TL that cannot be deducted creates no right for the following year. The 90,000 TL is deducted from the tax base, not from the tax payable; the actual tax effect depends on the applicable tax bracket.
Which Education and Health Expenses of the Taxpayer, Spouse and Minor Children Are Deductible?
Expenses made for the taxpayer, their spouse and their minor children are covered. As a general rule, a child is someone who has not reached 18 years of age, as well as someone who is still in education and has not reached 25. The circulars explain the living-together or dependency relationship and certain special cases. An expense made for siblings, a mother or a father is not covered by this item merely because of the family relationship.
If a spouse or child also files an annual return, the principle of individual taxation and the rule that the same expense may not be deducted twice must be observed. Using an invoice in one return while the payment is made from another family member’s account cannot be treated as a second ground for deduction.
Which Distinctions Matter for Education Expenses?
Eligible fees paid to an educational institution, education courses, school transport, books, stationery, and private dormitory or boarding house payments may be assessed as covered. By contrast, payments to schools abroad, separately priced school meals, donations to school parents’ associations, and payments to bodies that are not subject to income or corporate tax are not deductible under the same rule.
Rent for an ordinary apartment rented for a university student is not automatically equated with a private dormitory fee. The justification that “it was necessary for the child’s education” does not replace the legal type and document conditions of the expense. When the items in an education package, such as lessons, meals, transport and accommodation, are shown separately, the assessment becomes easier.
Health Expenses and Insurance Premiums Are Different
Expenses for diagnosis, treatment, medicines and suitable medical equipment are examined on the basis of their own documents. Health insurance premiums, however, are subject to separate provisions on the deduction of insurance premiums. The same payment cannot be deducted twice, once as a health expense and once as an insurance premium. The part covered by the insurer and the actual expense borne by the person must be separated.
Treatment abroad does not meet the condition that the expense be made in Türkiye. It is not appropriate to deduct a personal care or general consumption expense automatically on the claim that it has a health purpose; its nature and medical connection are assessed through documentation.
How Are Invoice, Payment and Beneficiary Information Documented for the Education and Health Expense Deduction?
| Check | Expected record |
|---|---|
| Year of the expense | Invoice and payment date |
| Beneficiary of the expense | Taxpayer, spouse or eligible child information |
| Service provider | Income or corporate tax status |
| Nature of the expense | Separation of education, health and excluded items |
| Deduction calculation | Eligible total, 10% limit and amount used |
Can an employee who does not file an annual return use the deduction?
This provision works through the annual income tax return. However, because an expense was made, it should not be assumed that wages which normally fall outside the return can be declared voluntarily to create a general right to a refund. The annual filing conditions for the wages are assessed first.
Is every document issued by a school sufficient?
No. The institution’s tax status, the nature of the document and the type of expense are reviewed together. A school name printed on a receipt does not show that every payment falls within the scope of the deduction.
Which Amount and Which Service Are Taken into Account on the Invoice?
For an eligible education or health expense that may be deducted from the income tax base, the amount on the document including value added tax (VAT) is taken into account. If VAT or an expense deduction has also been used in business records for the same expense, a check for double deduction is required. It is not correct to record a personal education expense first as a professional expense and then again as an annual deduction.
A school invoice may include education, meals, transport, clothing and other services under the same total. The deduction character of each item must be examined separately. Books, stationery, school clothing and transport directly related to education are separated from meals or personal consumption that falls outside the scope. The fact that a university or institution is an educational body is not sufficient on its own; the tax status of the recipient named in the payment document is also part of the legal condition.
What Does It Mean for a Payment to Be Made in Türkiye?
Paying a foreign school or health provider with a Turkish bank card does not by itself mean the expense was made in Türkiye. The place where the service was received and the tax status of the provider are checked together. Pricing in foreign currency does not, on its own, remove an eligible service received in Türkiye from the deduction.
For health expenses, items such as medicines, examinations, treatment, dental care and necessary medical equipment must be documented. An expense labeled as aesthetic or personal care is assessed on the basis of concrete documentation of its medical nature. The part covered by insurance and the part actually borne by the person must be separated; the entire amount covered by insurance is not used as a personal deduction.
Year-End Limit and Record Keeping
Where spouses file separate returns, the same invoice for the same child cannot be used in full in both returns. The person who bore the expense, and the extent to which it was included in each return, must be clear. The definition of a minor child is assessed together with age, the continuation of education and the conditions of the maintenance obligation.
The part of education and health expenses that exceeds the common 10% limit is not a right transferred to future years. Documents must remain accessible for the five-year tax retention period, which starts from the year following the relevant year. Keeping the verifiable electronic record of an e-Archive invoice and the payment link, rather than only a screenshot, provides a more reliable file for later review.
Decision Before the Transaction and the File to Prepare
Determine whose expense it is, whether it was made in Türkiye and whether the document is eligible. Track the common limit for education and health expenses in a single calculation, and do not use the same expense again through another deduction route.
Life and Personal Insurance Premiums under Income Tax: Policy Type, Deduction Rate and Annual Limits
The tax effect of life and personal insurance premiums cannot be determined from the name of the policy. The rate that may be considered for life insurance with a savings component differs from the rate for health, accident and similar personal insurance. In addition, the percentage limit and the annual minimum wage limit apply together. An amount deducted through payroll cannot be reused in the annual return.
Legal Nature of the Practice and How It Differs from Other Obligations
The scope of the insurance premium deduction changes depending on the risk the policy covers and on whether the payment is assessed through payroll or through the annual return. An individual pension contribution is not subject to the same deduction regime as all personal insurance premiums.
Which Part of Each Policy Is Taken into Account?
According to the guide, 50% of life insurance premiums that include a savings component, and 100% of eligible personal insurance premiums covering death, accident, illness, health, disability, maternity, birth and education, may enter the deduction calculation. However, these rates do not mean that the entire resulting amount will certainly be deducted. Other conditions and upper limits are applied at a later stage. [3; Income Tax Law Articles 63/3, 89/1]
Conditions such as the insurance having been concluded with an insurance or pension company resident in Türkiye and with its head office in Türkiye, and the premium having been paid in the relevant period, are checked. A policy written in a foreign language, or a policy denominated in foreign currency, is not sufficient on its own; the contracting party and the legal nature of the contract are determined.
Two Limits Apply Together in the Annual Return
The total of deductible premiums cannot exceed 15% of the declared income or the annual gross minimum wage amount. Once the eligible policy amount has been calculated, the lower of these two limits is applied. There is no separate 15% limit for each policy. The part that cannot be deducted cannot be transferred to the following year.
For income earned in 2025, the guide shows the annual gross minimum wage limit as 312,066 TL. This figure is not a fixed amount for every premium paid in 2026. The minimum wage for the year of the expense and periodic changes in wages are also checked separately.
Example of a calculation where life and other personal insurance premiums are paid together
Suppose a person whose declared income is 600,000 TL pays 80,000 TL to a cumulative life insurance policy and 70,000 TL to a suitable health insurance policy in 2025. In the first step, 40,000 TL of life premium and 70,000 TL of health premium are collected, for a total of 110,000 TL. Since 15% of the income is 90,000 TL, the deduction is limited to 90,000 TL, provided the other conditions are met. It would be wrong either to deduct the full 110,000 TL or to calculate 15% separately for each of the two policies.
Insurance Premiums in Payroll: The Correct Payment Period
For employees, the 15% limit on the wage for the month in which the premium was paid and the annual gross minimum wage limit are monitored together. Following the annual aggregation does not mean that unlimited deductions may be made in every month’s payroll. The policy, the payment document and the period to which the premium belongs must be reported correctly to the employer.
For premiums paid by the employer, the wage nature of the payment and its result as an expense are assessed separately. Where an employer’s contribution to an individual pension in the employee’s name and the employee’s personal insurance premium both exist, the relevant combined limit and the order of application are considered. The same economic payment must not be repeated across payroll, business expense and the annual return without any trace.
Why Is the Individual Pension Contribution Treated Separately?
An employee’s contribution to the individual pension system does not become a personal insurance premium deduction merely because it was paid to an insurance company. The state contribution system of the Individual Pension System (BES) and the income tax deduction are different mechanisms. Contributions made by an employer in the employee’s name are assessed under separate provisions.
A health insurance premium and a treatment invoice that the insurance does not cover are also kept separate. If the conditions are met, the latter may be assessed under the education and health expense provision; the 15% limit for premiums and the 10% limit for expenses cannot be used in place of each other.
Insurance Premium Deduction: Policy Type, Premium Payment Document and Payroll Records
The full policy text, the coverage and savings components, the payment receipt, the insured person’s details, the amount used in payroll and the annual limit schedule must be retained. If there is a cancellation or a premium refund, its effect on any earlier deduction is also assessed. When a policy is renewed, the previous year’s document and the new year’s payment must not be confused.
Can premiums paid for a spouse or child be deducted?
They must fall within the legal family scope and meet the other conditions. If a spouse or child also files a separate return, the same premium must not be used in two returns, and the principle of individual taxation must be observed.
Is the tax refunded in the same amount as the deduction?
No. The deduction reduces the tax base. The tax effect arises from the taxpayer’s total income, the tax bracket and the amounts withheld earlier.
How Is a Premium Paid by the Employer Assessed?
A personal insurance premium paid by an employer in the employee’s name is examined for the nature of the wage and for whether it must be grossed up in payroll. The employee’s appropriate premium deduction and the employer’s wage expense are different stages of the same chain of transactions. The fact that the employer pays directly does not mean the entire premium is deductible from the employee’s tax base without limit.
Where the employer makes contributions in the employee’s name to an individual pension system, a special expense rule applies to commercial earnings. This should not be confused with the absence of an annual income tax deduction for the employee’s own BES contribution. When the employer’s BES contribution and a personal insurance deduction exist in the same period, the combined limit and the usable part are calculated together.
Lump-Sum Payment of Annual Premiums and the Payroll Period
Paying a whole year’s premium in advance does not mean that the entire amount can be deducted without limit in a single month’s payroll. The premium is distributed across the relevant months and considered within the limits of the period in which the wage is earned. The policy term, the payment date and the payroll period must be tracked together. Using the payment year for the annual return and distributing the premium by period in payroll are not the same calculation.
For 2026, the annual gross minimum wage amount is 396,360 TL. However, reaching this upper limit also depends on the 15% income or wage limit and on the deduction rate of the policy. The rule that only 50% of a cumulative life insurance premium is taken into account is not replaced by the annual ceiling. The most favorable limit is not chosen; the required limits apply together.
Double Use and the Policy Document
Where wages are included in the annual return, premiums already used in payroll must not be taken into the deduction calculation again. The person in whose payroll or return a premium paid for a spouse or child was used must also be recorded. The fact that only the insured person’s name appears on the policy does not, on its own, establish who paid the premium or who may use the deduction.
The policy type, the insurance company’s status in Türkiye, the premium payment document, the breakdown by period and the payroll record must be kept together. Where premiums are refunded or the policy is cancelled, the part previously used for the deduction is also checked. Because the deduction reduces the tax base rather than the tax itself, no expectation of a tax refund equal to the premium amount should be formed.
Decision Before the Transaction and the File to Prepare
Define the policy type and the period in which the premium is paid clearly. Separate the part of life insurance that is to be considered from other eligible personal insurance, and apply the rate limit and the annual monetary ceiling together. Do not deduct again in the annual return an amount already used in payroll.
Donations and Aid for Income and Corporate Tax Deductions: Beneficiary Institution, Document, Limit and Exceptions
That a payment serves a social purpose does not mean its entire amount can be deducted from the tax base. What matters is to whom the donation is made, for what purpose and with which document. The general limited deduction, donations that are fully deductible under special laws, and sponsorship are different regimes. The tax status of the donor, as well as the nature of the receiving organization, must be checked.
Legal Nature of the Practice and How It Differs from Other Obligations
The social usefulness of a donation is not enough for its entire amount to be deductible from the tax base. The status of the receiving organization, the purpose of the donation, whether it is in cash or in kind, and the specific legal basis are assessed together.
Is a Donation an Expense or an Annual Return Deduction?
An ordinary expense of a commercial or professional activity is not the same as a donation or aid. A donation recorded as an expense in the accounts may need to be added back to the tax base and, if the conditions are met, separately deducted in the return. The same transaction cannot be used twice, once as an expense and once as a return deduction.
The donation provisions of income tax and corporate tax may look similar, but they are assessed separately in terms of deduction bases and special conditions. Using a single account template for a sole proprietorship and for a capital company can produce wrong results. [4; Income Tax Law Article 89; Corporate Tax Law Article 10]
General Donation Deduction and the Status of the Recipient
Donations to recipients listed in the law, such as general budget administrations, certain public institutions, municipalities, villages, public-benefit associations and foundations granted tax exemption, may be subject to the relevant general limit. Not every association is a public-benefit association, and not every foundation is a tax-exempt foundation. The words “public”, “education” or “aid” in a title do not prove status.
In income tax, the general rate is, as a rule, 5% of the declared income; under the relevant provision for priority development regions, it may be 10%. In corporate tax, the general limit is reviewed on the basis of 5% of the corporation’s earnings. The calculation base is not the accounting sales turnover. [4; Income Tax Law Article 89/4; Corporate Tax Law Article 10/1-c]
Donations That Are Fully Deductible Still Have Conditions
Appropriate donations for the construction or operation of schools, health facilities and other facilities listed in the law, certain aid campaigns, and appropriate cash donations to the Turkish Red Crescent Society (Türk Kızılay Derneği) and the Türkiye Yeşilay Society are assessed under separate special provisions. The word “fully” does not remove the requirements concerning the recipient and the purpose, or the limit on the earnings against which the deduction can be made.
Where a special provision requires a cash donation, an in-kind delivery may not produce the same result. For a donation within a campaign, the scope of the authorizing decision and the link between the payment and that campaign must be documented. Deductions under special laws should not be accepted under a general heading without citing the relevant law.
In-Kind Donations and Value Added Tax
For donations of goods, the value of the goods, their nature as inventory or fixed assets, the delivery document and acceptance by the recipient are all important. Treating the sale price of a donated item as the deduction amount is not correct in every case; the statutory valuation applies. Invoices, delivery records and the donation receipt must show the same transaction consistently.
Having a deduction right for income or corporate tax does not mean an automatic exemption for value added tax (VAT). The VAT treatment of the delivery, any special exemption and the position on input VAT are reviewed separately. Combining all tax types under one conclusion that “donations are tax-free” is not correct.
Sponsorship Expenses and Advertising Fees Are Separated for Tax Deduction
A payment in return for which promotion, advertising or another commercial benefit is received is assessed according to its real nature. For sponsorship, the contract, the purpose and the document conditions set by the legislation are important. In sports sponsorship, the deduction rates for amateur and professional branches may differ. The issue of a donation receipt does not, by itself, change the nature of a transaction that in reality was an advertising service.
Example of assessing a deduction according to the recipient, the purpose and the earnings limit
Before a company sends money to a local association, merely verifying the association’s bank account is not enough. First, the association’s legal and tax status, the purpose of the donation, the applicable statutory provision and the earnings limit must be determined. If the association has no special status, the payment may be socially valuable but may not produce the expected deduction from the tax base. This review is more effective than completing a missing receipt after the payment has been made.
Documents for the Donation Deduction: Recipient Status, Receipt and Delivery Records
| Document | Function |
|---|---|
| Recipient’s status document or decision | Verifying the legal recipient condition |
| Protocol or campaign basis | Establishing the link to the purpose and the special provision |
| Bank receipt and donation receipt | Proving the payment and its acceptance |
| In-kind valuation and delivery record | Showing the amount and the movement of goods |
| Reconciliation with the return | Preventing double deduction and exceeding the limit |
If there are no earnings, does the deduction carry forward to the next year?
There is no general and unlimited carry-forward right for unused portions of donation deductions. The relevant special provision must be checked separately. The words “fully deductible” alone do not mean that the deduction can be used in future years.
Does the person receiving the donation have a tax liability?
The donor’s deduction and the recipient’s exemption, or its position on inheritance and gift tax, are separate matters. A tax advantage on one side does not automatically provide an exemption on the other.
The Date of the Donation and the Recipient’s Status on That Date
The recipient’s status as a public-benefit association or as a foundation granted tax exemption must be verified as of the date of the donation. A different legal entity with a similar name, or a status acquired later, may not produce the same result. The donation receipt must clearly state the actual recipient, the date, and the amount or the nature of the goods.
The increased donation limit for certain regions under income tax cannot be carried automatically over to the general 5% limit of corporate tax. Where a donation is made within a partnership, which taxpayer’s return it is assessed in and how must also be checked separately. If the donation amount was recorded as an expense in the accounts, the correction in the return calculation and the order of the appropriate deduction must be preserved.
Food Banking and the 2026 Amendment
Under food banking, there are recipient, purpose and document conditions for food, cleaning products, clothing and fuel (yakacak) that are given free of charge. Cash aid or any second-hand item does not fall under the same special provision merely because it serves an aid purpose. The donation invoice and the delivery document must track the type and cost value of the goods.
The amendment made to GVK 89/6 by Law No. 7578, which took effect on May 1, 2026, expressly lists the Darülaceze Presidency (Darülaceze Başkanlığı) in the relevant provision. It is therefore not correct to treat the list of recipients in the guide as independent of the amendment’s date, or as a closed list. The provision that applies is assessed together with the transaction date. [Income Tax Law]
VAT also requires a separate analysis. The VAT exemption scope of a free delivery and the deduction of input VAT are distinct questions. It cannot be said that input VAT is non-deductible for all free aid without considering the exemptions in Article 30/a of VAT Law No. 3065. Expense treatment, return deduction, the VAT exemption and the input VAT deduction must be checked as four separate reviews.
Aid Campaigns, Facility Construction and Sponsorship
A campaign launched by the President of the Republic and a campaign organized by a private platform may not rest on the same deduction provision. For aid toward a school, a health facility, a place of worship or another facility, the institution type, the facility type and the delivery and permit conditions listed in the law are examined. The documentation for construction work differs from that for the delivery of goods or a cash donation.
Sponsorship expenses are subject to a separate regime; the distinction between amateur and professional sport and an appropriate contract are important. A payment made in return for advertising, however, may be assessed as a genuine commercial service. A label such as “donation”, “advertising” or “sponsor” on the document does not by itself determine the tax nature. The counter-performance, the promotional right and the beneficiary must be clearly shown in the file.
Decision Before the Transaction and the File to Prepare
Before making a donation, verify the legal status of the recipient on the relevant date and the document it will issue. Assess the expense record, the return deduction and the VAT consequences separately, and determine from the relevant provision whether the deduction right can carry over to the following year if earnings are insufficient.
Sources and Legal Basis
- Education and Health Expenses That May Be Deducted from Income Reported in the Annual Income Tax Return (Yıllık Gelir Vergisi Beyannamesinde Bildirilecek Gelirlerden İndirim Konusu Yapılabilecek Eğitim ve Sağlık Harcamaları)
- Income Tax Law No. 193 (193 sayılı Gelir Vergisi Kanunu)
- Life and Personal Insurance Premiums Deductible from the Income Tax Base (Gelir Vergisi Matrahından İndirilecek Hayat/Şahıs Sigorta Primleri)
- Donations and Aid from the Perspective of Tax Legislation (Vergi Mevzuatı Yönünden Bağış ve Yardımlar)
- Corporate Tax Law No. 5520 (5520 sayılı Kurumlar Vergisi Kanunu)
- Law No. 3065, especially Articles 30/a and 30/d (3065 sayılı Kanun, özellikle 30/a ve 30/d)