How are different expense categories treated for reimbursement?

Turkiye – Expense Tax Treatment Overview

Company Details (Must Appear on Invoices Issued in Turkiye):

All applicable invoices must be issued to the following entity details as stated in the Turkiye Expense Policy:

• Legal Name: VELOCITY GLOBAL ÖZEL İSTİHDAM HİZMETLERİ LİMİTED ŞİRKETİ
• Address: Trump Towers, Kuştepe, Mecidiyeköy Yolu Cad.,
• Office 1817 – No:12, Tower:2, Floor:18,
• İstanbul 34387, Turkey
• Tax / MERSIS Number: 0924097198400001

These details are mandatory for compliant invoicing in Turkiye

In Turkiye, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability.

For all expense types, proper documentation is mandatory.

All expenses must be supported by valid VAT-compliant invoices, including foreign invoices, which must meet Turkish tax requirements.

In addition, airline tickets, accommodation, car rental, and office supplies expenses incurred within Turkiye must be invoiced in the name of Velocity Global Turkiye, using the company details above. Invoices missing these details may be treated as non-compliant and result in the expense being taxable. Expenses must be incurred wholly, exclusively, and necessarily for business purposes, approved by the supervisor, and submitted with valid supporting documentation to ensure compliant reimbursement under Turkish tax regulations

Taxable Categories

Mileage and Fuel (Personal Vehicle): Turkiye does not operate a statutory mileage reimbursement system. Any mileage allowance established or reimbursement of fuel receipts for the use of a personal vehicle is treated as a taxable benefit and must be grossed up and processed via payroll.

Vehicle Expenses Not Invoiced to Velocity Global: If a vehicle is not rented or invoiced in the name of Velocity Global, all related expenses (fuel, parking, tolls) are considered a taxable benefit and subject to income tax.

Personal Mobile Phone and Broadband: When the employer covers mobile phone and/or broadband expenses in whole or in part, these expenses are treated as taxable benefits and reimbursed via payroll.

Gifts: Gifts provided to clients require supervisor approval and are treated as taxable expenses.

Expenses with Special Requirements

Company-Invoiced Vehicle and Travel Costs: Car rental, fuel, parking, and toll expenses invoices to be addressed to Velocity Global are treated as non-taxable company expenses.

Parking and Tolls: Parking and tolls incurred during business journeys are reimbursable when supported by valid documentation. Road tolls may be reimbursed without a receipt if properly documented in a travel expense form. Fines or penalties are never reimbursed.

Non-Taxable Expenses

These include business travel transportation, accommodation during business trips (hotel or Airbnb with VAT-compliant invoices issued to Velocity Global Turkiye), meals reimbursed against VAT invoices issued to the company, per diems paid within statutory limits, company-invoiced vehicle expenses, parking and tolls properly documented, client entertaining of reasonable business nature with invoices issued to the company, computer equipment and software used exclusively for business purposes, stationery and office supplies invoiced to Velocity Global Turkiye, dongles and data cards for business use, foreign currency exchange commissions, exchange rate differences, approved work permits and visas, business-related training directly necessary for the role, and exceptional business-related cancellation costs, provided all expenses are wholly, exclusively, and necessarily incurred for business purposes and properly documented