Taxation of wage income in Turkish income tax and evaluation in terms of social taxation principles

Taxes on income have an important position in the Turkish Tax System. Income taxes are one of the effective tools for the government to achieve both its fiscal and extra-fiscal aims. Additionally income taxes an indispensable type of tax for modern tax system due to their easy management, high revenues to the state treasury, and enabling technics where fair taxation can be achieved. Wages for labor is included in the subject of income tax. The issue of wages is closely related to all segments of society. In Turkey, wage earners represent an important taxpayer segment and wages have a high share in national income. Owing to the significant of wages in the tax system, the issue of how they should be taxed has also been one of the most discussed issues in the historical process. Generally, the only source of income for wage earners is wages. For this reason wage earners are a segment that should be protected in terms of taxation. A good tax system will be possible with tax technics that are compatible with taxation principles. Social taxation principles such as justice, equality, generality and ability to pay should be taken into account, especially for the state achieve its social aims. It is highly significant for the fair distribution of the tax burden to take these principles as a basis in the taxation of wage income, which is usually the only source of livelihood for wage earners and their families. This study aims to evaluate some regulations regarding the taxation of wage income in terms of social taxation principles. Primarily, wage definitions in various aspect and income tax were explained. Then the taxation of wage income in Turkey was explained. Finally, the minimum wage exemption, the abolition of the minimum living allowance, financial obligations on wage, the tax rates in the taxation of wages, the taxation method, the exemption practices have been evaluated in terms of social taxation principles. The study was prepared using descriptive method. As result of the study, it was concluded that the regulations included in the study on the taxation of wage incomes are generally not compatible with the social taxation principles. Keywords: Income Tax, Wage Income, Social Taxation Principles