SUMMARY

1) If the person to whom the attendance fee is paid works in the same place within the scope of 4-1/a of Law No. 5510, the attendance fee to be paid to this person is subject to insurance premium.

2) If the person to whom the attendance fee is paid works in the same place within the scope of 4-1/b of Law No. 5510, the attendance fee to be paid to this person is not subject to insurance premium.

EVALUATION OF WHETHER RIGHT TO PEACE PAYMENTS ARE SUBJECT TO PREMISES:

In practice, there may be situations where some duties are performed by participating in the meetings of bodies such as commissions, committees, and administrative committees, and the attendees are paid in the name of attendance fee per meeting or hour.

Company partners, company managers and board members have certain responsibilities and obligations in terms of laws. The financial compensation determined in order to reduce the risks faced by these people due to these responsibilities and obligations is called attendance fee.

According to article 61 of the Income Tax Law No. 193, attendance fees are defined as wages and are taxed through withholding tax.

According to the SGK legislation, whether the payments made under the name of attendance fee are subject to premium will be determined according to the status of the insured. Payments will be subject to insurance premium. However, if the aforementioned persons do not work with a service contract, that is, if they are insured under 4-1/b, the insurance premium will not be deducted from the payments made under the name of attendance fee.

In joint stock companies; If the members of the board of directors work in the company of which they are a member of the board of directors, within the scope of article 4-1/a of the Law No. 5510, that is, depending on the service contract, the attendance fee paid to these persons must be subject to insurance premium. If the members of the board of directors are within the scope of article 4-1/b of the Law No. 5510, that is, they are bond members, the attendance fee payments made to these persons do not need to be subject to insurance premiums.

Within the scope of Article 4-1/b of the Law No. 5510, attendance fee payments made to the partners holding the title of manager and non-management partners within the limited companies do not need to be subject to insurance premium. Attendance payments made to persons who work in limited liability companies under a service contract and are within the scope of 4-1/a of Law No. 5510, are required to be subject to insurance premium.

Regards…

TURMOB

(25.06.2020)