Employment of foreigners in Turkey and Turkish tax law

“Employment of foreigners in Turkey and Turkish tax law” article is published by Azkan Group specialist in Umbrella Company Turkey/Payroll Turkey and Recruitment Turkey since 2005.

Employment of foreigners in Turkey and Turkish tax law

As a general rule, foreigners are obliged to get permission before they start to work dependently or independently in Turkey. Foreigners residing out of Turkey make their work permit applications to the Embassy of the Republic of Turkey in their country of residence.
Foreigners who have a valid residence permit in Turkey, or their employers, are entitled to make their application directly to the ministry.

Valid work permits as well as work permit exemptions are considered as residence permits.
Work permit procedures, processes and transactions to be followed are arranged in newly introduced “International Workforce Law No. 6753”, which aims at attracting qualified foreigners into Turkey. Eligible foreigners may be granted a “Turquoise Card” that allows the holders to work permanently in Turkey and enjoy the same rights as accorded tu Turkish citizens.

Turkish tax law

Tax is withheld from employee’s gross income which includes all kinds of income, whether in cash or in kind, earned as a result of employment in a calendar year. Taxable gross income brackets and the rates in 2018 are shown below :

Taxable Income Bracket

Up to 14.800 TRY/Tax Rate 15

For the 14.800 TRY of 34.000 TRY the tax is 2.220 TRY, in excess/Tax Rate 20

For the 34.000 TRY of 120.000 TRY THE TAX IS 6.060 TRY, in excess/Tax Rate 27

For the 120.000 TRY of income over 120.000 TRY the tax is 29.280 TRY, in excess/Tax Rate 35

Payments to the tax authority in Employment of foreigners in Turkey and Turkish tax law

Starting from July 2018, Income tax, of employees withheld from their earnings by the employer and the SSI premium contributions will be combined in a single form and submitted online to tax offices by the 23rd of the following month (Kirsehir, Amasya Bartin, Cankiri…)

Monthly tax declarations (until 1st of July 2018) will be submitted to the tax authorities by the 20th of the following month and should be paid on the 26th of the same month.

Employee returns in Employment of foreigners in Turkey and Turkish tax law

There is no application in Turkey, salaried employees working under an employment contract don’t have to submit annual tax returns unless they have a different type of earning.