What Is a Board Member Fee, and How Is It Calculated? (2026 Guide)

If you're considering paying members of the board or shareholders in your company, it pays to clearly understand the difference between salary and board attendance fee. Board attendance fee is a type of payment made without SGK premiums, and is directly subject to income tax and stamp tax. If it is not calculated correctly, unexpected tax burdens can arise — in this guide, we cover board attendance fee from every angle with the up-to-date 2026 rates.

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

• What it means: A legal payment made to company board members or shareholders, without requiring an employment relationship.

• Why it matters: Since it is not subject to SGK premiums and cannot benefit from the tax exemption, its net amount is calculated differently from salary; poor planning can lead to unnecessary tax burdens.

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

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

• Risk of incorrect calculation: If cumulative base tracking is not done correctly when crossing brackets, underreported tax, withholding return errors, and penalty risks may arise.

What Is Board Attendance Fee?

Board attendance fee is the amount paid in joint-stock and limited liability companies to board members, auditors, or shareholders for their participation in company activities without an employment contract. Defined under the Turkish Commercial Code (TTK), this type of payment is not a salary; it is a compensation for duties and responsibilities.

Board attendance fee is not exclusive to large companies. It is also widely used in small and medium-sized businesses; it is especially common for payments made to people who are both shareholders and executives.

For tax purposes, board attendance fee is treated as employment income under Article 61 of the Income Tax Law No. 193. Therefore, it is subject to income tax withholding and stamp tax. However, it does not create insured status under 4/a (SSK); in other words, no SGK premium is deducted.

Who Can Receive Board Attendance Fee?

• Board members of joint-stock companies

• Managers of limited liability companies

• Company auditors

• Shareholders authorized by the general assembly

Differences Between Board Attendance Fee and Salary

Although board attendance fee and salary may look similar at first glance, they differ significantly from a tax and social security perspective. Especially when both salary and board attendance fee are paid to the same person, understanding these differences is critical to avoid unnecessary tax burdens.

Key Differences

Which Is More Advantageous? Impact on Net Amount

The absence of SGK premiums makes board attendance fee seem attractive at first glance. However, because it cannot benefit from the minimum wage tax exemption, the net result may fall below salary, especially at low and medium amounts.

For higher-value payments, the picture changes. In salary, the employer's SGK share creates an additional cost, while board attendance fee does not have this burden, making it more economical for the company.

In short, which payment type is more advantageous depends on the person's current income level, tax bracket, and whether they are insured under SGK. To compare both options using your own figures, you can use Üstad's Board Attendance Fee Calculator .

How Is Board Attendance Fee Calculated? (2026)

Board attendance fee calculation has a simpler structure compared with salary calculation. Since there are no SGK premiums or unemployment insurance deductions, only two tax items are considered: income tax and stamp tax.

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Step-by-Step Calculation Method

Step 1

Determine the gross amount Use the monthly gross board attendance fee amount set by the general assembly decision.

Step 2

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

Step 3

Calculate income tax The tax rate to be applied for that month is determined according to which bracket the cumulative base falls into, and the income tax is calculated.

Step 4

Calculate stamp tax Stamp tax is calculated at a rate of 0.759% on the gross amount.

Step 5

Find the net amount.

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

Why Is the Cumulative Tax Base Important?

Income tax is not calculated at a fixed rate; it is calculated progressively based on the total income accumulated during the year. In other words, someone in the 15% bracket in January may move into the 20%, 27%, or higher brackets as income increases throughout the year. Therefore, the net amount for the same gross board attendance fee may differ between January and December.

2026 Board Attendance Fee Tax Rates and Brackets

The tax rates applied to board attendance fee payments are not fixed; they follow a progressive structure. As the total income accumulated during the year (cumulative base) increases, the tax bracket also rises. Therefore, it is very important to consider tax brackets when planning the annual total board attendance fee amount.

2026 Income Tax Brackets

Stamp Tax

For board attendance fee payments, a 0.759% stamp tax is applied to the gross amount. This rate is calculated at a fixed rate for each payment, independent of income tax.

Increasing Tax Burden at Higher Amounts

As the monthly board attendance fee amount increases, the likelihood of entering higher tax brackets during the year also rises. For example, a person receiving TRY 100,000 gross board attendance fee per month may start in the 15% bracket in the early months of the year and move into the 27% and higher brackets in later months. This significantly increases the total tax burden at year-end.

That is exactly why you should simulate the annual total tax burden before setting the board attendance fee amount. Üstad's Board Attendance Fee Calculator automatically performs the 12-month cumulative calculation and provides a separate tax breakdown for each month.

How Is a Board Attendance Fee Decision Made? (Legal Process)

To make a board attendance fee payment, a properly adopted decision is required first. Payments made without a decision can create serious issues both legally and from a tax perspective.

1. General Assembly Decision Is Mandatory

   Under the Turkish Commercial Code, the authority to approve board attendance fee payments and determine the amount belongs to the general assembly. Payments made without this decision are considered improper and may cause issues in future tax audits. In joint-stock companies, the general assembly adopts this decision; in limited liability companies, the shareholders' meeting does. The decision must be recorded in minutes and entered into the company's books.

2. Details That Must Appear in the Decision Minutes

• The title of the person or persons entitled to board attendance fee

• The gross amount to be paid monthly or per meeting

• Payment period (monthly, quarterly, etc.)

• The period for which the decision will be valid

Board Attendance Fee and SGK Relationship

The most significant difference between board attendance fee and salary is the SGK premium. Board attendance fee payments are not treated as earnings subject to premiums under Social Insurance and General Health Insurance Law No. 5510. Therefore, neither the employee share nor the employer share of SGK premium is deducted from board attendance fee.

Advantages of Not Having SGK Premium

• No additional SGK cost for the employer

• The total payment burden is more predictable compared with salary

• The calculation process is simpler and involves fewer items

Disadvantages of Not Having SGK Premium

• Board attendance fee is not reflected in the retirement calculation

• It does not affect insured service duration

• It falls outside coverage for workplace accidents and occupational diseases

• The retirement pension may remain low in the long term

If a person receives both salary and board attendance fee from the same company, SGK premiums are calculated only on salary. Board attendance fee is excluded from this calculation. However, both payments are added to that person's cumulative tax base for income tax purposes. In other words, when salary and board attendance fee are considered together, the person may move into higher tax brackets earlier.

📌 Critical Warning: Board Attendance Fee Does Not Provide Insurance Coverage!

Receiving a board attendance fee does not automatically bring the person under SGK coverage. A manager who has no other insured status in the company (4/a) is not considered to have paid retirement contributions or gained health coverage simply by receiving board attendance fee. Especially for people nearing retirement, this can create serious risks such as gaps in contribution days and inability to benefit from healthcare services.

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Board Attendance Fee Accounting Entry and Filing Process

Board attendance fee payments must be properly classified according to accounting standards and declared within the legal deadlines. Using incorrect account codes or missing the filing timeline can expose your business to both tax penalties and irregular bookkeeping issues.

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

From the company's legal entity perspective, board attendance fee is a statutorily deductible expense. In the Uniform Chart of Accounts (TDHP), it can be tracked under 770 – General Administrative Expenses and deducted from the corporate tax base. From the perspective of the person receiving the payment (shareholder or executive), this amount is treated as employment income and is therefore subject to withholding.

Basic Accounting Entry and Chart of Accounts

When accrual for board attendance fee is recorded, the debit and credit balance is set up as follows:

Withholding and Filing Process

The income tax and stamp tax deducted from board attendance fee are reported to the government through the Withholding and Premium Service Declaration. The process works on the following schedule:

• Filing Deadline: The return is filed by the evening of the 26th day of the month following the accrual month.

• Payment Deadline: The declared taxes are also paid by the end of the 26th day of the same month.

• Method: The declaration process is typically carried out through a financial advisor or via authorized e-declaration systems.

Critical Points to Watch in the Withholding Return

To avoid incorrect reporting, focus on the following four items during the filing stage:

1. Employment Income Classification: Board attendance fee payments must be shown under the "salary" category in the return.

2. Cumulative Base Tracking: The tax bracket changes during the year must be reflected in the return with the correct rates.

3. Individual Reporting: If payments are made to more than one person, the tax withholding for each beneficiary must be reported separately.

4. Updated Amount Control: Any amount changes made by general assembly decision must be reflected in the return immediately.

Workflow Coordination with Your Financial Advisor

Board attendance fee management is an integrated process with payroll and other personnel expenses. To minimize risks such as underreported tax or late payment interest, it is critical to regularly share cumulative base reports with your financial advisor and file copies of general assembly decisions.

Common Mistakes Related to Board Attendance Fee

Although board attendance fee may seem like a relatively simple type of payment, common mistakes in practice can lead to serious tax and legal consequences. Knowing these mistakes in advance greatly reduces potential issues later on.

1. Making Payments Without a General Assembly Decision

This is one of the most common mistakes. Payments made without a decision are considered improper, may not be accepted as deductible expenses, and may be criticized in tax audits. A general assembly decision must be obtained and recorded in minutes before payments begin.

2. Not Tracking the Cumulative Tax Base

Assuming that a fixed tax rate applies every month is a frequent calculation mistake. As the cumulative base increases during the year, the tax bracket changes as well. Calculations made without considering bracket transitions lead to insufficient tax withholding, and therefore to withholding return errors and tax penalties.

3. Trying to Apply the Minimum Wage Tax Exemption to Board Attendance Fee

The minimum wage tax exemption applies only to employment income, meaning salary. Board attendance fee cannot benefit from this exemption. If applied incorrectly, tax will be underreported and this may result in a tax loss penalty.

4. Including SGK Premium in the Wrong Calculation

Although board attendance fee is not subject to SGK premium, in some cases it is mistakenly calculated and deducted. This creates an extra cost for both the employee and the employer and turns into an error that requires a refund process.

5. Not Reporting Amount Changes During the Year

When the board attendance fee amount is changed by general assembly decision, this change must be immediately reflected in the accounting records and the withholding return. Filing based on the old amount without updating can lead to both underpaid and overpaid taxes.

6. Filing the Withholding Return Late or Not at All

Taxes withheld on board attendance fee must be declared regularly every month. If the return is filed late, late payment interest and an administrative penalty are applied. Not filing at all can result in more severe sanctions, up to a tax loss penalty.

7. Recording Board Attendance Fee as an Advance

Sometimes board attendance fee payments are tracked as advances in accounting. This is an incorrect classification. Board attendance fee should be accrued, recorded to the correct account codes, and taxed in full.

❓ Frequently Asked Questions

1. Is board attendance fee deductible from tax?

Yes. Board attendance fee is a business expense for the company and can be deducted from the corporate tax base. However, the general assembly decision must be in place, the payment must be made properly, and the accounting record must be kept correctly. Payments made without documentation or without a decision may not be accepted as deductible expenses.

2. Does board attendance fee affect retirement?

Since board attendance fee is not subject to SGK premiums, it does not contribute to the retirement calculation in any way. Insured service duration and premium days are not affected. People who only receive board attendance fee and have no other insured status may face risks in terms of retirement security. In such cases, evaluating alternative options such as optional insurance is recommended.

3. Is board attendance fee required to be paid monthly?

No. Board attendance fee does not have to be paid monthly. Depending on the period specified in the general assembly decision, it can also be paid quarterly, semiannually, or per meeting. The important thing is that the payment period is clearly stated in the decision and that the withholding return is prepared accordingly.

4. What is the board attendance fee withholding rate?

For board attendance fee payments, income tax withholding varies between 15% and 40% depending on the cumulative tax base. In addition, stamp tax of 0.759% is deducted from the gross amount. Both deductions are declared and paid through the withholding return.

5. Is board attendance fee mandatory?

No. Paying board attendance fee is not a legal requirement. However, if it will be paid, the 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 issues.

📌 Üstad's Note:

Although board attendance fee is a strategic advantage for company management, its calculation is much more complex than it appears because of the cumulative tax base and changing brackets. The fact that the net amount you receive in January can drop significantly by year-end due to a higher tax bracket can disrupt your cash flow planning.

Don't leave your tax burden to surprises! With Üstad's Board Attendance Fee Calculator:

• You can instantly calculate using the 2026 up-to-date tax rates,

• Automatically see cumulative base transitions for all 12 months of the year,

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