On 14 October 2025, the Ministry of Economy and Finance (“MEF”) issued Circular No. 014 MEF.S.R.N.Or.K.K on the Obligation to Declare and Pay Tax on Salary for Pregnant Employees Receiving the Total Salary Before Taking Maternity Leave (“Circular”). This Circular is issued in pursuant to Prakas No. 475 MEF.Prk.GDT dated 19 September 2024 on Tax on Salary and Instruction No. 015/25 dated 7 February 2025 of the Ministry of Labour and Vocational Training (“MLVT”) concerning the special protection of pregnant employees. Its purpose is to promote the welfare of pregnant employees and ensure proper compliance with the tax obligations related to their salaries.
This Circular provides guidance to enterprises and relevant institutions on the procedures for declaring and paying tax on salary in relation to maternity leave payments, as follows:
1. Tax Declaration on Regular Salary:
Enterprises are required to record and declare tax on salary in the month when the salary is paid to the employee. This does not include the salary for the maternity leave period, which is addressed separately under the Labour Law.
2. Tax Declaration on Maternity Leave Salary:
Under the Labour Law, pregnant employees are entitled to receive their total maternity leave salary in a lump sum before commencing their leave. However, enterprises must not declare and pay the total tax on salary collectively in the month of payment. Instead, they must declare and pay tax on salary monthly and separately, based on the salary corresponding to each respective month of maternity leave.
This tax update is brought to you by Davies SM Attorneys-at-law.