The All Restaurants and Tourism Business Association (TÜRES) and the Tourism Restaurant Investors and Gastronomy Businesses Association (TURYİD) called for the inclusion of tipping via credit cards in the omnibus bill. Sector representatives stated that the ability to pay tips via credit cards would save the state from a major tax loss.
The Informal Economy and the Potential for Tips
Stating that an income of 900 billion liras is expected in the food and beverage sector by the end of 2024, TURYID President Kaya Demirer said, “Today, we are talking about an economy that is completely off the books. If we reach a tip rate of 10-15 percent with the credit card system, it will be possible to obtain a tip income of 90-135 billion TL. If the Ministry of Treasury and Finance applies a 10 percent holding tax to this income, an income of 9-13.5 billion liras will enter the state’s coffers annually, as opposed to zero. The remaining 90 percent will be distributed fairly among employees.”
Employee Earnings and Tax Advantages
Demirer stated that the tips, which will no longer be a mandatory payment for customers with the new regulation, will only be transferred to employees after a 10 percent tax deduction, and that the current earnings of 45-50 TL will increase to 90 TL with the proposed voluntary application. Demirer stated that tips will be collected in another account and said, “We, the employers, will not touch this money.”
Examples from Europe
In Western countries, tipping via credit card is widely used. In Europe, although ‘tipping’ is not preferred as much due to cultural differences compared to ours, tips paid via credit cards are subject to a separate tax bracket. Sector representatives are demanding that this system be implemented in our country as well.
