What is the Attendance Fee (Huzur Hakkı) and How is It Calculated?

If you are considering making payments to board members or partners in your company, it is highly beneficial to understand the difference between salary and attendance fees (huzur hakkı). Attendance fees are a type of payment made without Social Security (SGK) premiums, directly subject to income tax and stamp duty. If calculated incorrectly, you may face unexpected tax burdens — in this guide, we cover attendance fees in all aspects with the current rates for 2026.

📌 In 60 Seconds: What You Need to Know About Attendance Fees

• What it means: It is a legal payment made to company board members or partners for their participation, without requiring an employment relationship.

• Why it is important: Since it is not subject to SGK premiums and cannot benefit from tax exemptions, its net amount is calculated differently from a salary; incorrect planning can lead to unnecessary tax burdens.

• 2026 tax rates: Income tax is applied progressively between 15% and 40%; in addition, a 0.759% stamp duty is deducted.

• How it is calculated: The net amount is found by deducting income tax and stamp duty from the gross amount based on the cumulative tax bracket — you can calculate it in minutes using Üstad's free Attendance Fee Calculator tool.

• Risk of incorrect calculation: If cumulative tax base tracking is not performed and brackets are skipped, risks of underdeclared taxes, withholding tax return errors, and punitive sanctions may arise.

What is an Attendance Fee (Huzur Hakkı)?

An attendance fee is a payment made to board members, auditors, or partners in joint-stock and limited liability companies in return for their participation in company activities without an employment contract. Defined under the Turkish Commercial Code (TTK), this payment type is not a wage; it is of a compensatory nature in return for duties and responsibilities.

Attendance fees are not exclusive to large corporations. They are also widely used in small and medium-sized companies; especially preferred for payments made to individuals who act both as partners and managers.

The taxation of attendance fees is considered wage income under Article 61 of the Income Tax Law No. 193. Therefore, it is subject to income tax withholding and stamp duty. However, it does not create insurance coverage under 4/a (SSK); meaning SGK premiums are not deducted.

Who Can Receive Attendance Fees?

• Board members of joint-stock companies

• Managers of limited liability companies

• Company auditors

• Partners authorized by the general assembly

Differences Between Attendance Fees and Salary

Even though attendance fees and salary look similar at first glance, they differ significantly in terms of taxation and social security. Especially in cases where both a salary and an attendance fee are paid to the same person, understanding these differences is critical to avoiding unnecessary tax burdens.

Main Differences

Which One is More Advantageous? Effect on the Net Amount

The absence of SGK premiums makes attendance fees look attractive at first glance. However, the inability to benefit from the minimum wage tax exemption can pull the net outcome below the salary level, especially for low and medium amounts.

The picture changes, however, for high-amount payments. While the employer's share of SGK creates an additional cost in salary, it can be more economical for the company as this burden does not exist in attendance fees.

In conclusion, which payment type is more advantageous depends on the person's current income level, tax bracket, and whether they are covered by SGK. To compare both options with your own figures, you can use Üstad's Attendance Fee Calculator tool.

How to Calculate Attendance Fees? (2026)

Calculating attendance fees has a simpler structure compared to salary calculation. Since there are no SGK premium or unemployment insurance deductions, only two tax items are taken into account: income tax and stamp duty.

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Step-by-Step Calculation Method

Step 1

Determine the gross amount Based on the monthly gross attendance fee amount determined by the general assembly decision.

Step 2

Calculate the cumulative tax base The total gross attendance fee paid from the beginning of the year to the relevant month forms the cumulative tax base. This tax base determines which income tax bracket will be entered.

Step 3

Calculate income tax According to which bracket the cumulative tax base corresponds to, the tax rate to be applied for that month is determined and income tax is calculated.

Step 4

Calculate stamp duty Stamp duty is calculated at a rate of 0.759% over the gross amount.

Step 5

Find the net amount.

Net Attendance Fee = Gross Amount − Income Tax − Stamp Duty

Why is Cumulative Tax Base Important?

Income tax is calculated progressively based on total earnings accumulated during the year, not on a flat rate. In other words, someone who is in the 15% bracket in January may enter the 20%, 27%, or higher brackets as their earnings increase during the year. For this reason, the net in January and the net in December for the same gross attendance fee amount may differ.

2026 Attendance Fee Tax Rates and Brackets

Tax rates applied to attendance fee payments have a progressive structure rather than a flat rate. As the total earnings accumulated during the year (cumulative tax base) increase, the tax bracket also rises. Therefore, it is of great importance to consider tax brackets when planning the annual total attendance fee amount.

2026 Income Tax Brackets

Stamp Duty

A stamp duty of 0.759% is applied to attendance fee payments over the gross amount. This rate is calculated as a flat rate for each payment, independent of income tax.

Increasing Tax Burden on High Amounts

As the monthly attendance fee amount increases, the probability of entering higher tax brackets during the year increases. For example, a person who receives a gross monthly attendance fee of 100,000 TL starts in the 15% bracket in the first months of the year, but may move to 27% and higher brackets in the following months. This situation significantly increases the total tax burden at the end of the year.

Precisely for this reason, it is necessary to simulate the annual total tax burden before determining the attendance fee amount. Üstad's Attendance Fee calculator tool automatically performs the 12-month cumulative calculation and presents a separate tax breakdown for each month.

How is an Attendance Fee Decision Taken? (Legal Process)

To make an attendance fee payment, a properly compliant decision must be taken first. Payments made without a decision can cause serious problems both in terms of legal validity and taxation.

1. Requirement of General Assembly Decision

   According to the Turkish Commercial Code, paying attendance fees and determining their amount is within the authority of the general assembly. Payments made without this decision are considered irregular and may cause issues in future tax audits. The general assembly in joint-stock companies, and the board of partners in limited liability companies takes this decision. The decision must be recorded in the minutes and entered into the company books.

2. Details Required in Decision Minutes

• Title of the person or persons eligible to receive attendance fees

• Gross amount to be paid monthly or per meeting

• Payment period (monthly, quarterly, etc.)

• The period during which the decision will be valid

Attendance Fees and SGK Relationship

The most distinct difference between attendance fees and salary is the SGK premium. Attendance fee payments are not considered prime-basis earnings under the Social Security and General Health Insurance Law No. 5510. Therefore, neither employee share nor employer share SGK premiums are deducted from attendance fees.

Advantages of Having No SGK Premium

• No additional SGK cost is incurred for the employer

• The total payment burden is more predictable compared to salary

• The calculation process is simpler with fewer items

Disadvantages of Having No SGK Premium

• Attendance fees are not reflected in retirement calculation

• Insurance period is not affected

• Fails to cover occupational accidents and professional diseases

• In the long run, the retirement pension may remain low

If a person receives both salary and attendance fees from the same company, the SGK premium is calculated only on the salary. Attendance fees are kept out of this calculation. However, both payments are added to the cumulative tax base of the same person in terms of income tax. Thus, when salary and attendance fees are evaluated together, the individual may enter higher tax brackets earlier.

📌 Critical Warning: Attendance Fees Do Not Provide Insurance Coverage!

Attendance fee payments do not automatically include the recipient in the scope of SGK. A manager who does not have another insurance status (4/a) in the company is not considered to have paid a retirement premium or gained health insurance coverage just by receiving attendance fees. Especially for individuals whose retirement is approaching, this situation can create serious risks such as gaps in premium days and inability to benefit from healthcare services.

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Attendance Fee Accounting Record and Declaration Process

Attendance fee payments must be correctly classified according to accounting standards and declared within legal deadlines. Using incorrect account codes or neglecting the declaration calendar can expose your business to both tax penalties and commercial book irregularities.

Cash Outflow from the Company or Deduction from the Tax Base?

Attendance fees are a legally accepted expense for the company legal entity. Tracked under the account 770 – General Administration Expenses in the Uniform Chart of Accounts (TDHP), they can be deducted from the corporate tax base. For the recipient (partner or manager), this amount functions as wage income and is therefore subject to withholding tax.

Basic Accounting Entry and Chart of Accounts

When the attendance fee accrual is made, the debit and credit balance is established as follows:

Withholding and Withholding Tax Return Process

Income tax and stamp duty deducted from attendance fees are reported to the state with the Withholding and Premium Service Declaration. The process operates according to the following schedule:

• Declaration Period: The declaration must be submitted by the evening of the 26th day of the month following the accrual month.

• Payment Period: Declared taxes are paid by the end of the 26th day of the same month.

• Method: The declaration process is generally carried out through a CPA or via authorized e-declaration systems.

Critical Points to Watch in Withholding Tax Returns

To prevent incorrect notifications, these four items should be focused on at the declaration stage:

1. Wage Income Classification: Attendance fee payments must be shown in the "wage" category in the declaration.

2. Cumulative Tax Base Tracking: Tax brackets changing during the year must be reflected in the declaration with the correct rates.

3. Individual Declaration: If payments are made to multiple individuals, the tax deduction of each rights holder must be declared separately.

4. Current Amount Control: Amount changes implemented by the general assembly decision must be reflected in the declaration immediately.

Workflow Coordination with CPA

Attendance fee management is integrated with payroll and other personnel expenses. To minimize risks like underdeclared taxes or late payment interest, sharing cumulative tax base breakdowns regularly with your CPA and filing a copy of the general assembly decisions is critical.

Common Mistakes Regarding Attendance Fees

Even though attendance fees seem to be a relatively simple payment type, mistakes frequently made in practice can lead to serious tax and legal consequences. Knowing the following mistakes beforehand prevents future issues significantly.

1. Making Payments Without a General Assembly Decision

This is one of the most common mistakes. Payments made without taking a decision are considered irregular, may not be accepted as expenses, and can be subject to criticism during tax audits. Before starting payments, a general assembly decision must be taken and recorded in the minutes.

2. Not Tracking Cumulative Tax Base

Assuming that a flat tax rate is applied every month is a common calculation mistake. As the cumulative tax base increases during the year, the tax bracket also changes. Calculations made without considering bracket transitions lead to underdeclared taxes, and consequently, to withholding tax return errors and tax penalties.

3. Trying to Apply Minimum Wage Tax Exemption to Attendance Fees

Minimum wage tax exemption is only applied to wage income, meaning salary. Attendance fees cannot benefit from this exemption. If applied by mistake, taxes will be underdeclared, which can cause tax loss penalties.

4. Including SGK Premium in the Wrong Account

Even though there is no SGK premium in attendance fees, it is seen that premiums are occasionally calculated and deducted by mistake. This creates an extra cost for both the employee and employer and turns into an error requiring a refund process.

5. Not Notifying Amount Changes During the Year

When the attendance fee amount is changed by a general assembly decision, this change must be reflected in the accounting records and withholding tax return immediately. Declaring over the old amount without an update can lead to both underpaid and overpaid taxes.

6. Submitting Withholding Tax Returns Late or Not Submitting At All

The tax deducted from attendance fees must be declared regularly every month. If the declaration is submitted late, delay interest and irregularity penalties apply. Not submitting at all leads to heavier sanctions that can go up to tax loss penalties.

7. Recording Attendance Fees as Advances

From time to time, attendance fee payments are tracked as advances in accounting. This is an incorrect classification. Attendance fees must be accrued, recorded under correct account codes, and tax deductions must be done seamlessly.

❓ Frequently Asked Questions

1. Are attendance fees tax-deductible?

Yes. Attendance fees act as a commercial expense for the company and can be deducted from the corporate tax base. However, for this to happen, the general assembly decision must be taken, the payment must be made in due form, and the accounting record must be kept correctly. Payments made without documentation or a decision may not be accepted as expenses.

2. Do attendance fees affect retirement?

Since attendance fees are not subject to SGK premiums, they do not contribute to the retirement calculation. Insurance period and premium days are not affected. Individuals who only receive attendance fees and do not have another insurance status may be at risk regarding retirement security. In this case, evaluating alternative options like voluntary insurance is recommended.

3. Are monthly attendance fee payments mandatory?

No. Attendance fees do not have to be paid monthly. Depending on the period specified in the general assembly decision, it can also be made quarterly, semi-annually, or per meeting. What is important is that the payment period is clearly stated in the decision and the withholding tax return is arranged accordingly.

4. What is the withholding tax rate for attendance fees?

Income tax withholding on attendance fee payments varies between 15% and 40% depending on the cumulative tax base. In addition to this, a stamp duty of 0.759% is deducted from the gross amount. Both deductions are declared and paid via the withholding tax return.

5. Are attendance fees mandatory?

No. Making attendance fee payments is not a legal requirement. However, if paid, this decision must be taken by the general assembly and the amount must be clearly determined. Payments made without a decision can create legal and tax problems.

📌 Üstad's Note:

Even though attendance fees present a strategic advantage for company management, their calculation is far more complex than it seems due to the cumulative tax base and changing brackets. The net amount you receive in January decreasing significantly at the end of the year due to entering a higher tax bracket can disrupt your cash flow planning.

Do not leave your tax burden to surprises! With Üstad's Attendance Fee Calculation tool:

• You can perform calculations instantly based on current 2026 tax rates,

• See cumulative tax base transitions automatically for 12 months under one page,

• Analyze which method is more economical for your company in seconds with Salary vs. Attendance Fees comparison.