{"id":5167,"date":"2024-06-28T21:06:44","date_gmt":"2024-06-28T21:06:44","guid":{"rendered":"https:\/\/www.cbhukuk.com\/?p=5167"},"modified":"2026-03-16T22:03:10","modified_gmt":"2026-03-16T22:03:10","slug":"tax-on-foreign-income-in-turkey","status":"publish","type":"post","link":"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/","title":{"rendered":"Practices Regarding Tax on Foreign Income in Turkey"},"content":{"rendered":"<section class=\"l-section wpb_row height_small\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-image align_center\"><div class=\"w-image-h\"><img decoding=\"async\" width=\"800\" height=\"400\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-800x400.jpg\" class=\"attachment-us_800_400 size-us_800_400\" alt=\"tax on foreign income in turkey\" srcset=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-800x400.jpg 800w, https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-300x150.jpg 300w, https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-1024x512.jpg 1024w, https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-100x50.jpg 100w, https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-90x45.jpg 90w, https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey-120x60.jpg 120w, https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/tax-on-foreign-income-in-turkey.jpg 1536w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_auto\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column us_custom_275474cc has_text_color\"><div class=\"wpb_wrapper\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#THE_LEGAL_ASPECT_OF_RECEIVING_INCOME_ABROAD_WHILE_RESIDING_IN_TURKEY\" >THE LEGAL ASPECT OF RECEIVING INCOME ABROAD WHILE RESIDING IN TURKEY<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#PRACTICES_OF_TAX_ON_FOREIGN_INCOME_IN_TURKEY\" >PRACTICES OF TAX ON FOREIGN INCOME IN TURKEY<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#Foreign_Employment_Income_Earned_in_Turkey_Under_the_Income_Tax_Law\" >Foreign Employment Income Earned in Turkey Under the Income Tax Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#Double_Taxation_Treaties_on_Foreign_Employment_Income\" >Double Taxation Treaties on Foreign Employment Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#Tax_Exemptions_on_Foreign_Employment_Income_Pursuant_to_Article_2314-a_of_the_Income_Tax_Law\" >Tax Exemptions on Foreign Employment Income Pursuant to Article 23\/14-a of the Income Tax Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#Exemption_Conditions_Pursuant_to_Income_Tax_Communique_No_147\" >Exemption Conditions Pursuant to Income Tax Communiqu\u00e9 No. 147<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#a_The_Foreign_Employer_Must_Not_Have_a_Headquarters_in_Turkey\" >a) The Foreign Employer Must Not Have a Headquarters in Turkey<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#b_Payment_of_Salaries_in_Foreign_Currency_in_Turkey\" >b) Payment of Salaries in Foreign Currency in Turkey<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#c_Payment_of_Salaries_Out_of_Earnings_Obtained_Abroad\" >c) Payment of Salaries Out of Earnings Obtained Abroad<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#d_Tax_Consequences_of_Receiving_Foreign_Income_from_Abroad_in_Turkey\" >d) Tax Consequences of Receiving Foreign Income from Abroad in Turkey<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#ADVANCE_RULINGS_ON_THE_TAX_OBLIGATIONS_OF_RECEIVING_A_SALARY_FROM_ABROAD_IN_TURKEY\" >ADVANCE RULINGS ON THE TAX OBLIGATIONS OF RECEIVING A SALARY FROM ABROAD IN TURKEY<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#Advance_Ruling_1_Conditions_for_Exempting_Salaries_Received_from_Abroad_from_Income_Tax_in_Turkey\" >Advance Ruling 1: Conditions for Exempting Salaries Received from Abroad from Income Tax in Turkey<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#Advance_Ruling_2_Exemption_Not_Applied_in_Consultancy_Services\" >Advance Ruling 2: Exemption Not Applied in Consultancy Services<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#RECEIVING_SALARIES_FROM_ABROAD_IN_TURKEY_FROM_A_SOCIAL_SECURITY_PERSPECTIVE\" >RECEIVING SALARIES FROM ABROAD IN TURKEY FROM A SOCIAL SECURITY PERSPECTIVE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#RECEIVING_SALARIES_FROM_ABROAD_IN_TURKEY_FROM_A_LABOR_LAW_PERSPECTIVE\" >RECEIVING SALARIES FROM ABROAD IN TURKEY FROM A LABOR LAW PERSPECTIVE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.cbhukuk.com\/en\/tax-on-foreign-income-in-turkey\/#TAX_CONSEQUENCES_OF_RECEIVING_FOREIGN_INCOME_FROM_ABROAD_IN_TURKEY\" >TAX CONSEQUENCES OF RECEIVING FOREIGN INCOME FROM ABROAD IN TURKEY<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"THE_LEGAL_ASPECT_OF_RECEIVING_INCOME_ABROAD_WHILE_RESIDING_IN_TURKEY\"><\/span>THE LEGAL ASPECT OF RECEIVING INCOME ABROAD WHILE RESIDING IN TURKEY<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p data-start=\"162\" data-end=\"827\"><strong>With the advancement of computer technologies and the widespread use of the internet, faster and easier data transfer has made remote work more accessible.<\/strong> In particular, <strong>the<\/strong> <strong data-start=\"337\" data-end=\"393\">Covid-19 pandemic marked a significant turning point<\/strong> in the expansion of remote work. Many companies adopted <strong>remote working models<\/strong> during the pandemic to continue their business operations, and the <strong data-start=\"539\" data-end=\"587\">efficiency of this model soon became evident<\/strong>. As a result, even after the effects of the pandemic diminished, <strong data-start=\"653\" data-end=\"711\">remote working practices remained a permanent solution<\/strong> in the business world, <strong>and the situation of receiving income abroad in Turkey has become increasingly common.<\/strong><\/p>\n<p data-start=\"829\" data-end=\"1199\"><strong>This transformation has opened doors not only for local employers but also for opportunities to work with<\/strong> <strong data-start=\"935\" data-end=\"962\">international employers<\/strong>. Professionals residing in Turkey and specialized in various fields have begun to earn <strong data-start=\"1050\" data-end=\"1101\">income from abroad by providing remote services<\/strong> to foreign employers. This presents <strong data-start=\"1138\" data-end=\"1161\">numerous advantages<\/strong> for both individuals and economies.<\/p>\n<p data-start=\"1201\" data-end=\"1760\"><strong>The<\/strong> <strong data-start=\"1205\" data-end=\"1294\">taxation status of salaries sent by foreign companies to employees residing in Turkey<\/strong>, as well as their position under the <strong data-start=\"1332\" data-end=\"1369\">Social Security Institution (SGK)<\/strong>, has become an increasingly important issue in recent years. Especially with the rise of remote work during the Covid-19 pandemic, many Turkish citizens started <strong data-start=\"1531\" data-end=\"1591\">earning income by working remotely for foreign employers<\/strong>. However, as the volume of foreign income increased, several <strong data-start=\"1653\" data-end=\"1686\">legal issues and complexities<\/strong> arose, particularly concerning <strong>the tax on foreign income in Turkey<\/strong>.<\/p>\n<p data-start=\"1762\" data-end=\"2089\">In particular, questions remain regarding <strong data-start=\"1804\" data-end=\"1852\">how foreign income should be taxed in Turkey<\/strong> and <strong data-start=\"1857\" data-end=\"1922\">how it should be assessed within the scope of social security<\/strong>. If employees residing in Turkey and providing services to foreign companies <strong data-start=\"2000\" data-end=\"2041\">fail to declare their income properly<\/strong>, they may face <strong data-start=\"2057\" data-end=\"2086\">substantial tax penalties<\/strong>.<\/p>\n<p data-start=\"2091\" data-end=\"2638\">Furthermore, since it is unclear <strong data-start=\"2124\" data-end=\"2190\">how international social security systems should be integrated<\/strong>, confusion also arises regarding the <strong data-start=\"2228\" data-end=\"2282\">payment of social security contributions in Turkey<\/strong>. These uncertainties can result in <strong data-start=\"2318\" data-end=\"2368\">significant financial risks and legal problems<\/strong> for employees. Therefore, <strong data-start=\"2395\" data-end=\"2512\">clarifying the legal aspects of how foreign income is taxed and how it is treated under social security in Turkey<\/strong> is of great importance. In such cases, <a href=\"https:\/\/www.cbhukuk.com\/en\/online-legal-services\/\"><strong data-start=\"2552\" data-end=\"2589\">seeking professional legal advice in Turkey<\/strong><\/a> can help <strong data-start=\"2599\" data-end=\"2635\">prevent potential loss of rights<\/strong>.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_small\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-iconbox us_custom_aea21514 iconpos_left style_default color_secondary align_center no_title\"><div class=\"w-iconbox-icon\" style=\"font-size:2rem;\"><i class=\"fas fa-gavel\"><\/i><\/div><div class=\"w-iconbox-meta\"><div class=\"w-iconbox-text\"><p><strong><a href=\"https:\/\/www.mevzuat.gov.tr\/mevzuat?MevzuatNo=193&amp;MevzuatTur=1&amp;MevzuatTertip=4\" target=\"_blank\" rel=\"noopener\">Income Tax Law<\/a> <\/strong>Article 7<\/p>\n<p>(Amended: 27\/3\/1969-1137\/1 Article) In terms of individuals subject to limited tax liability, income and earnings are considered to be obtained in Turkey based on the following conditions:<\/p>\n<p>(Amended: 31\/12\/1981-2574\/1 Article) For commercial earnings: The income earner must have a workplace in Turkey or a permanent representative, and the income must be obtained in these places or through these representatives. (Even if they meet these conditions, income derived from individuals whose business center is not located in Turkey, who purchase or manufacture goods in Turkey for export without selling them within Turkey, and send them to foreign countries, is not considered to be obtained in Turkey from these activities.)<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_auto\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column us_custom_275474cc has_text_color\"><div class=\"wpb_wrapper\"><h2><span class=\"ez-toc-section\" id=\"PRACTICES_OF_TAX_ON_FOREIGN_INCOME_IN_TURKEY\"><\/span>PRACTICES OF TAX ON FOREIGN INCOME IN TURKEY<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The<\/strong> <strong data-start=\"117\" data-end=\"214\">taxation of employment income earned by individuals residing in Turkey from foreign employers<\/strong> is a <strong data-start=\"220\" data-end=\"242\">multifaceted issue<\/strong> in terms of both <strong data-start=\"260\" data-end=\"276\">domestic law<\/strong> and <strong data-start=\"281\" data-end=\"311\">international tax treaties<\/strong>. As a rule, the salaries received by individuals residing in Turkey from abroad are <strong data-start=\"396\" data-end=\"429\">subject to taxation in Turkey<\/strong>; however, if the conditions set forth under <strong data-start=\"474\" data-end=\"529\">Article 23\/14-a of the Turkish Income Tax Law (GVK)<\/strong> and <strong data-start=\"534\" data-end=\"556\">Communiqu\u00e9 No. 147<\/strong> are met, an <strong data-start=\"569\" data-end=\"593\">income tax exemption<\/strong> applies.<\/p>\n<ul>\n<li>\n<h3 data-start=\"151\" data-end=\"224\"><span class=\"ez-toc-section\" id=\"Foreign_Employment_Income_Earned_in_Turkey_Under_the_Income_Tax_Law\"><\/span><strong data-start=\"151\" data-end=\"222\">Foreign Employment Income Earned in Turkey Under the Income Tax Law<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p data-start=\"151\" data-end=\"224\">Pursuant to <strong data-start=\"238\" data-end=\"291\">Article 7\/3-a of the Turkish Income Tax Law (GVK)<\/strong>, the employment income earned by individuals residing in Turkey is deemed as <strong data-start=\"369\" data-end=\"399\">\u201cincome derived in Turkey\u201d<\/strong>, even if the employer is located abroad. Therefore, as a rule, the <strong data-start=\"467\" data-end=\"581\">salaries received by individuals residing in Turkey from foreign employers are subject to income tax in Turkey<\/strong>.<\/p>\n<p data-start=\"586\" data-end=\"997\">Although such salaries are generally <strong data-start=\"623\" data-end=\"681\">not taxed in the country where the employer is located<\/strong>, they may also be <strong data-start=\"700\" data-end=\"736\">exempt from income tax in Turkey<\/strong> if the conditions stipulated under the legislation are met, despite <strong>Turkey having the right to tax them.<\/strong> For this exemption to apply, the <strong data-start=\"875\" data-end=\"909\">employee must reside in Turkey<\/strong>, and the <strong data-start=\"919\" data-end=\"994\">employer must not have a workplace or permanent establishment in Turkey<\/strong>.<\/p>\n<ul>\n<li>\n<h3 data-start=\"119\" data-end=\"178\"><span class=\"ez-toc-section\" id=\"Double_Taxation_Treaties_on_Foreign_Employment_Income\"><\/span><strong data-start=\"119\" data-end=\"176\">Double Taxation Treaties on Foreign Employment Income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p data-start=\"119\" data-end=\"178\">Through the <strong data-start=\"192\" data-end=\"220\">double taxation treaties to which Turkey is a party<\/strong>, rules regarding taxation processes with other countries \u2014 particularly in the fields of <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/business-law-in-turkey\/\"><strong data-start=\"337\" data-end=\"355\">commercial law<\/strong><\/a> and <strong data-start=\"360\" data-end=\"378\">employment law<\/strong> \u2014 have been established, and these <strong data-start=\"414\" data-end=\"482\"><a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/contract-law-in-turkey\/\">international treaties<\/a> take precedence over domestic legislation<\/strong>. Under the provisions on <strong data-start=\"508\" data-end=\"541\">\u201cDependent Personal Services\u201d<\/strong> (generally regulated under <strong data-start=\"569\" data-end=\"583\">Article 15<\/strong> of the treaties), the fundamental rule for the taxation of foreign employment income is that <strong data-start=\"677\" data-end=\"774\">the country where the employee actually performs the services has the right to tax the income<\/strong>.<\/p>\n<p data-start=\"779\" data-end=\"1264\">Within this framework, even <strong>if<\/strong> <strong>a person residing in Turkey receives a salary from an employer abroad<\/strong>, as long as the services are <strong data-start=\"913\" data-end=\"947\">physically performed in Turkey<\/strong>, <strong>the<\/strong> <strong data-start=\"953\" data-end=\"992\">right to taxation belongs to Turkey<\/strong>. In most cases, <strong data-start=\"1009\" data-end=\"1065\">no taxation is carried out in the employer\u2019s country<\/strong>, and Turkey obtains the <strong data-start=\"1090\" data-end=\"1122\">exclusive taxation authority<\/strong> on such income. However, if the <strong data-start=\"1155\" data-end=\"1189\">statutory exemption conditions<\/strong> are met, the relevant income is <strong data-start=\"1222\" data-end=\"1261\">not subject to income tax in Turkey<\/strong>.<\/p>\n<ul>\n<li>\n<h3 data-start=\"115\" data-end=\"214\"><span class=\"ez-toc-section\" id=\"Tax_Exemptions_on_Foreign_Employment_Income_Pursuant_to_Article_2314-a_of_the_Income_Tax_Law\"><\/span><strong data-start=\"115\" data-end=\"212\">Tax Exemptions on Foreign Employment Income Pursuant to Article 23\/14-a of the Income Tax Law<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p data-start=\"115\" data-end=\"214\"><strong data-start=\"115\" data-end=\"212\">Regarding the taxation of salaries received from abroad in Turkey, Article 23\/14 of the Income Tax Law (GVK) holds significant importance.<\/strong> According to this article, <strong>persons<\/strong> <strong>residing in Turkey and receiving salaries from a foreign company<\/strong> may obtain an <strong data-start=\"463\" data-end=\"487\">income tax exemption<\/strong> from such salaries if certain conditions are met.<\/p>\n<blockquote>\n<p data-start=\"541\" data-end=\"608\"><strong>Paragraph 14\/a of Article 23 of the Income Tax Law is as follows:<\/strong><\/p>\n<p data-start=\"610\" data-end=\"881\">\u201c(14\/a) Salaries paid in foreign currency to employees working for employers subject to limited tax liability whose legal and business headquarters are not located in Turkey, provided that such salaries are paid out of the earnings obtained by the employer abroad;\u201d<\/p>\n<\/blockquote>\n<p data-start=\"883\" data-end=\"1166\">Accordingly, in cases where the salary of personnel in Turkey is paid in <strong data-start=\"956\" data-end=\"976\">foreign currency<\/strong> by a <strong data-start=\"982\" data-end=\"1001\">foreign company<\/strong>, and provided that the salary is paid out of the earnings obtained abroad by the employer, such <strong data-start=\"1098\" data-end=\"1163\">foreign employment income is exempt from income tax in Turkey<\/strong>.<\/p>\n<h3><a ref=\"magnificPopup\" href=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/yurtdisindan-ucret-alinmasi-e1755608900130.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-5159 size-us_800_400\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/yurtdisindan-ucret-alinmasi-800x314.jpg\" alt=\"receiving income abroad in Turkey\" width=\"800\" height=\"314\" \/><\/a><\/h3>\n<ul>\n<li>\n<h3 data-start=\"228\" data-end=\"296\"><span class=\"ez-toc-section\" id=\"Exemption_Conditions_Pursuant_to_Income_Tax_Communique_No_147\"><\/span><strong data-start=\"228\" data-end=\"294\">Exemption Conditions Pursuant to Income Tax Communiqu\u00e9 No. 147<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p data-start=\"228\" data-end=\"296\">In section (c) of <strong data-start=\"316\" data-end=\"349\">Income Tax Communiqu\u00e9 No. 147<\/strong>, the conditions for income tax exemptions on <strong data-start=\"395\" data-end=\"424\">foreign employment income in Turkey<\/strong> are explained as follows:<\/p>\n<h4 data-start=\"454\" data-end=\"1065\"><span class=\"ez-toc-section\" id=\"a_The_Foreign_Employer_Must_Not_Have_a_Headquarters_in_Turkey\"><\/span><strong data-start=\"454\" data-end=\"520\">a) The Foreign Employer Must Not Have a Headquarters in Turkey<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p data-start=\"454\" data-end=\"1065\"><strong>The fundamental condition for the application of the exemption is that the employer must<\/strong> <strong data-start=\"612\" data-end=\"688\">not have any legal headquarters or <a href=\"https:\/\/www.cbhukuk.com\/en\/establishing-a-foreign-company-branch-in-turkey\/\">branch of a foreign company in Turkey<\/a><\/strong>. This requirement is explicitly stated under <strong data-start=\"734\" data-end=\"775\">Article 23\/14-a of the Income Tax Law<\/strong>. Therefore, if the employer has <strong><a href=\"https:\/\/www.cbhukuk.com\/en\/company-types-in-turkey\/\">a company incorporation in Turkey<\/a>, branch, representation office, permanent representative, <a href=\"https:\/\/www.cbhukuk.com\/en\/foreigners-buying-property-in-turkey\/\">acquires real estate in Turkey as a foreign company<\/a>, or maintains a presence through any legal structure in Turkey<\/strong>, the salary in question cannot be considered within the scope of the exemption.<\/p>\n<p data-start=\"1067\" data-end=\"1641\"><strong>Here, the important point is that the legal status of the employer abroad is irrelevant<\/strong>. In other words, the employer may be <strong><a href=\"https:\/\/www.cbhukuk.com\/en\/corporate-law-in-turkey\/\">a company<\/a>, foundation, association, cooperative, or any other type of organization.<\/strong> Even the lack of legal personality does not prevent the application of this condition. Similarly, it does not matter whether the employer operates as <strong>a commercial enterprise in the foreign country<\/strong>. The <strong data-start=\"1482\" data-end=\"1501\">critical factor<\/strong> is that the employer must not have any entity in Turkey that could be defined as a <strong data-start=\"1585\" data-end=\"1609\">\u201clegal headquarters\u201d<\/strong> or <strong data-start=\"1613\" data-end=\"1639\">\u201cplace of management.\u201d<\/strong><\/p>\n<p data-start=\"1643\" data-end=\"2319\"><strong>However, under the legislation, an exceptional arrangement has been introduced:<\/strong> <strong><a href=\"https:\/\/www.cbhukuk.com\/en\/establishing-a-liaison-office-in-turkey\/\">liaison offices established by foreign companies in Turkey<\/a> are excluded from this rule.<\/strong> The salaries paid to employees working in a liaison office of a foreign company in Turkey are <strong data-start=\"1909\" data-end=\"1935\">exempt from income tax<\/strong>, provided that the other conditions are also met. This is because liaison offices, by their nature, are <strong data-start=\"2040\" data-end=\"2080\">not engaged in commercial activities<\/strong> and <strong>serve only for representation purposes.<\/strong> This regulation is consistent with the fact that <strong>liaison office activities do not generate taxable income in Turkey<\/strong>, and it grants a <strong data-start=\"2258\" data-end=\"2276\">special status<\/strong> for the taxation of employees\u2019 salaries.<\/p>\n<h4 data-start=\"172\" data-end=\"669\"><span class=\"ez-toc-section\" id=\"b_Payment_of_Salaries_in_Foreign_Currency_in_Turkey\"><\/span><strong data-start=\"172\" data-end=\"228\">b) Payment of Salaries in Foreign Currency in Turkey<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p data-start=\"172\" data-end=\"669\">Another condition for benefiting from the exemption is that the <strong data-start=\"295\" data-end=\"359\">employee\u2019s salary must be paid in foreign currency in Turkey<\/strong>. In cases of <strong data-start=\"373\" data-end=\"410\">receiving income abroad in Turkey<\/strong>, this requirement means that <strong>salaries paid in Turkish Lira are excluded from the scope of the exemption.<\/strong> This reflects that foreign-sourced salaries are considered <strong data-start=\"575\" data-end=\"666\">income derived from earnings abroad and not directly connected with the Turkish economy<\/strong>.<\/p>\n<p data-start=\"671\" data-end=\"1165\">The purpose of requiring payment in foreign currency is both to <strong data-start=\"735\" data-end=\"779\">confirm the foreign source of the income<\/strong> and to ensure that it is <strong data-start=\"805\" data-end=\"855\">not associated with income generated in Turkey<\/strong>. Therefore, <strong>payments made in Turkish Lira from income derived from an employer\u2019s activities in Turkey<\/strong> cannot benefit from this provision. In practice, this rule mostly applies where <strong data-start=\"1038\" data-end=\"1091\">international companies without offices in Turkey<\/strong> pay salaries in foreign currency to their employees residing in Turkey.<\/p>\n<h4 data-start=\"1172\" data-end=\"1555\"><span class=\"ez-toc-section\" id=\"c_Payment_of_Salaries_Out_of_Earnings_Obtained_Abroad\"><\/span><strong data-start=\"1172\" data-end=\"1230\">c) Payment of Salaries Out of Earnings Obtained Abroad<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p data-start=\"1172\" data-end=\"1555\"><strong>For salary payments made to employees residing in Turkey<\/strong> to be exempt from income tax, such payments must be <strong data-start=\"1342\" data-end=\"1399\">financed from the employer\u2019s earnings obtained abroad<\/strong>. In other words, <strong>if the salary is paid out of income generated from any economic activity carried out in Turkey<\/strong>, the exemption provisions will not apply.<\/p>\n<p data-start=\"1557\" data-end=\"1951\"><strong>At this point, what matters is the source of the payment<\/strong>. If the payment is made from income derived from an employer\u2019s activities in Turkey, <strong>such salaries become connected with Turkey and thus fall outside the scope of the exemption<\/strong>. Therefore, the fact that the payment originates from <strong data-start=\"1853\" data-end=\"1881\">earnings obtained abroad<\/strong> constitutes one of the <strong data-start=\"1905\" data-end=\"1948\">most critical elements of the exemption<\/strong>.<\/p>\n<p data-start=\"1953\" data-end=\"2400\">In this context, the condition of <strong data-start=\"1987\" data-end=\"2038\">\u201cnot engaging in business activities in Turkey\u201d<\/strong> should be interpreted broadly \u2014 not only as the absence of a physical workplace, but also as the absence of <strong data-start=\"2147\" data-end=\"2181\">any income-generating activity<\/strong>. Indeed, a foreign company\u2019s economic presence in Turkey is <strong>not limited to having a physical branch or liaison office<\/strong>; any form of <strong data-start=\"2313\" data-end=\"2368\">commercial activity that generates income in Turkey<\/strong> also falls within this scope.<\/p>\n<p data-start=\"2402\" data-end=\"2936\">Accordingly, situations such as <strong data-start=\"2434\" data-end=\"2633\">selling products or services in Turkey, conducting consultancy activities, <a href=\"https:\/\/www.cbhukuk.com\/en\/trademark-registration-in-turkey\/\">registering trademarks<\/a> under <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/ip-law-in-turkey\/\">intellectual property rights<\/a>, or generating royalty, license, know-how, or franchise income<\/strong> are all considered <strong data-start=\"2653\" data-end=\"2695\">income-generating activities in Turkey<\/strong>. In the presence of such economic activities, the foreign company is deemed to be engaged in business in Turkey, and therefore <strong data-start=\"2823\" data-end=\"2933\">salary payments to employees cannot benefit from the exemption under Article 23\/14-a of the Income Tax Law<\/strong>.<\/p>\n<h4 data-start=\"131\" data-end=\"209\"><span class=\"ez-toc-section\" id=\"d_Tax_Consequences_of_Receiving_Foreign_Income_from_Abroad_in_Turkey\"><\/span><strong data-start=\"131\" data-end=\"207\">d) Tax Consequences of Receiving Foreign Income from Abroad in Turkey<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p data-start=\"211\" data-end=\"729\"><strong>If all of the conditions listed above are fulfilled, the salaries received from abroad by an employee residing in Turkey are exempt from income tax<\/strong>. This applies regardless of whether the employee is considered a <strong data-start=\"428\" data-end=\"456\">full taxpayer (resident)<\/strong> or a <strong data-start=\"462\" data-end=\"497\">limited taxpayer (non-resident)<\/strong> in Turkey. Therefore, even if the individual is a <strong data-start=\"548\" data-end=\"586\">Turkish citizen residing in Turkey<\/strong>, as long as the conditions are satisfied, <strong data-start=\"629\" data-end=\"726\">foreign-sourced salaries paid in foreign currency will not be subject to income tax in Turkey<\/strong>.<\/p>\n<p data-start=\"731\" data-end=\"1325\">In addition, this situation also has an important <strong data-start=\"781\" data-end=\"817\">tax consequence for the employer<\/strong>. Payments made by an employer that does <strong data-start=\"858\" data-end=\"903\">not conduct business activities in Turkey<\/strong> and does <strong data-start=\"913\" data-end=\"946\">not generate income in Turkey<\/strong> cannot be considered as deductible expenses under <strong data-start=\"997\" data-end=\"1047\">Article 40 of the Turkish Income Tax Law (GVK)<\/strong>. This is because such payments are <strong data-start=\"1083\" data-end=\"1137\">not connected with any commercial income in Turkey<\/strong>. In other words, salaries that are not linked to income earned in Turkey by the foreign employer <strong>cannot be deducted from the tax base in Turkey in terms of the employer\u2019s <a href=\"https:\/\/www.cbhukuk.com\/en\/tax-liability-responsibility-in-companies-in-turkey\/\">tax liability<\/a>.<\/strong><\/p>\n<p data-start=\"1327\" data-end=\"1524\">As a result, even if the employee is a <strong data-start=\"1366\" data-end=\"1393\">full taxpayer in Turkey<\/strong>, the salaries earned from <strong>a<\/strong> <strong data-start=\"1422\" data-end=\"1449\">foreign employer abroad<\/strong> <strong>will not be subject to income tax<\/strong>, provided that the conditions are met.<\/p>\n<p data-start=\"1526\" data-end=\"1630\">Thus, the <strong data-start=\"1536\" data-end=\"1608\">tax status of income earned abroad by individuals residing in Turkey<\/strong> depends on whether:<\/p>\n<ol>\n<li data-start=\"1634\" data-end=\"1710\">The employer has <strong data-start=\"1651\" data-end=\"1707\">no headquarters or permanent establishment in Turkey<\/strong>,<\/li>\n<li data-start=\"1714\" data-end=\"1763\">The <strong data-start=\"1718\" data-end=\"1756\">salary is paid in foreign currency<\/strong>, and<\/li>\n<li data-start=\"1767\" data-end=\"1841\">The <strong data-start=\"1771\" data-end=\"1838\">salary is financed from the employer\u2019s earnings obtained abroad<\/strong>.<\/li>\n<\/ol>\n<p data-start=\"1843\" data-end=\"1982\">These regulations <strong data-start=\"1861\" data-end=\"1925\">reduce the tax uncertainties of international labor mobility<\/strong> and provide a <strong data-start=\"1940\" data-end=\"1979\">significant advantage for employees<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ADVANCE_RULINGS_ON_THE_TAX_OBLIGATIONS_OF_RECEIVING_A_SALARY_FROM_ABROAD_IN_TURKEY\"><\/span>ADVANCE RULINGS ON THE TAX OBLIGATIONS OF RECEIVING A SALARY FROM ABROAD IN TURKEY<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The following examples provide clear rules on <strong>the tax obligations and exemptions related to receiving income abroad in Turkey.<\/strong><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Advance_Ruling_1_Conditions_for_Exempting_Salaries_Received_from_Abroad_from_Income_Tax_in_Turkey\"><\/span>Advance Ruling 1: Conditions for Exempting Salaries Received from Abroad from Income Tax in Turkey<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><strong>A private ruling outlines the conditions under which a salary received from abroad can be considered exempt from income tax:<\/strong><\/p>\n<ol>\n<li><strong>Condition of Being a Limited Taxpayer Institution<\/strong>: The employer of the individual providing services in Turkey <strong>must be a limited taxpayer institution<\/strong>, and this institution <strong>must not engage in any activities in Turkey that generate income.<\/strong><\/li>\n<li><strong>Nature of the Employee and Salary<\/strong>: For a person employed by a <strong data-start=\"145\" data-end=\"172\">limited taxpayer entity<\/strong>, the individual must be considered a <strong data-start=\"210\" data-end=\"232\">dependent employee<\/strong>, and the payment must be of a <strong data-start=\"263\" data-end=\"285\">salary\/wage nature<\/strong>. Special statuses regulated under specific legal frameworks, such as <a href=\"https:\/\/www.cbhukuk.com\/en\/collection-of-footballers-debts\/\"><strong data-start=\"355\" data-end=\"391\">foreign football player earnings<\/strong><\/a> or <a href=\"https:\/\/www.cbhukuk.com\/en\/maritime-labor-law-in-turkey\/\"><strong data-start=\"395\" data-end=\"415\">seafarers\u2019 wages<\/strong><\/a>, <strong data-start=\"417\" data-end=\"458\">cannot be considered <\/strong>within the scope of this provision.<\/li>\n<li><strong>Payment from Foreign Earnings<\/strong>: The payment to the employee in Turkey must be made from <strong>the foreign earnings of the limited taxpayer institution.<\/strong><\/li>\n<li><strong>Payment in Foreign Currency<\/strong>: The salary must be paid in <strong>foreign currency.<\/strong><\/li>\n<li><strong>Non-deductibility of Expenses<\/strong>: The salary paid must <strong>not be recorded as an expense in the Turkish accounts<\/strong> of the limited taxpayer institution.<\/li>\n<\/ol>\n<p>Based on these provisions and explanations, <strong>the salaries paid directly from the foreign headquarters to personnel working at the Turkish representative offices opened by a foreign institution in Ankara and Hatay<\/strong>, and paid in <strong>foreign currency<\/strong>, will be exempt from income tax under Article 23, paragraph 14 of the Income Tax Law, provided that the above conditions are met.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Advance_Ruling_2_Exemption_Not_Applied_in_Consultancy_Services\"><\/span>Advance Ruling 2: Exemption Not Applied in Consultancy Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><strong>Another private ruling is as follows:<\/strong><\/p>\n<p><em>\u201cAccording to these provisions and explanations, the fee paid directly to you from abroad in f<strong>oreign currency for the project consultancy services provided via the internet to a company domiciled abroad<\/strong> is not exempt from income tax under Article 23\/14 of the Income Tax Law. This is because the conditions specified in the 147th Income Tax General Communiqu\u00e9 are violated, <strong>as the income was earned by providing consultancy services that contribute to the employer firm&#8217;s profit.<\/strong> Therefore, it is necessary to declare this income through an annual tax return according to Article 95 of the Income Tax Law.\u201d<\/em><\/p>\n<p><strong>As seen, if the person providing services from Turkey is a consultant (not in a personnel position)<\/strong>, in other words, acting as a freelancer, the exemption under Article 23\/14-a of the Income Tax Law does not apply. <strong>Consultancy income earned from abroad must be taxed in Turkey.<\/strong><\/p>\n<p><strong>For the exemption to apply to foreign income in Turkey, there must be an employer-employee relationship between the parties.<\/strong> The most important document proving this relationship is the employment contract made between the parties, defining them as employer and employee.<\/p>\n<p>If such <strong><a href=\"https:\/\/www.cbhukuk.com\/en\/types-of-employment-contracts\/\">an employment contract<\/a> exists<\/strong> and the other exemption conditions are met,<strong> the tax exemption for receiving income abroad in Turkey<\/strong> can be applied even if <strong>the employer-employee relationship<\/strong> is limited to or lasts for a specific project.<\/p>\n<p><a style=\"font-family: inherit;\" ref=\"magnificPopup\" href=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/yurtdisindan-maas-almanin-vergisel-boyutu-2-e1755608691768.jpg\"><img decoding=\"async\" class=\"aligncenter wp-image-5161 size-us_800_400\" src=\"https:\/\/www.cbhukuk.com\/wp-content\/uploads\/2024\/06\/yurtdisindan-maas-almanin-vergisel-boyutu-2-800x292.jpg\" alt=\"foreign income from abroad in Turkey\" width=\"800\" height=\"292\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"RECEIVING_SALARIES_FROM_ABROAD_IN_TURKEY_FROM_A_SOCIAL_SECURITY_PERSPECTIVE\"><\/span>RECEIVING SALARIES FROM ABROAD IN TURKEY FROM A SOCIAL SECURITY PERSPECTIVE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"315\" data-end=\"848\"><strong data-start=\"315\" data-end=\"381\">Law No. 5510 on Social Insurances and General Health Insurance<\/strong> establishes that <strong data-start=\"399\" data-end=\"481\">salary payments made within the framework of an employer-employee relationship<\/strong> give rise to <strong data-start=\"495\" data-end=\"539\">social security contribution obligations<\/strong>. However, the scope of the law is essentially limited to <strong data-start=\"597\" data-end=\"667\">employers resident in Turkey and the insured employees they employ<\/strong>. Therefore, in cases where the <strong data-start=\"699\" data-end=\"730\">employer is resident abroad<\/strong> and the <strong data-start=\"739\" data-end=\"779\">salary payments are made from abroad<\/strong>, the provisions of Law No. 5510 <strong data-start=\"812\" data-end=\"828\">do not apply<\/strong> <strong>to such salaries.<\/strong><\/p>\n<p data-start=\"850\" data-end=\"1316\">Within this framework, <strong data-start=\"873\" data-end=\"907\">individuals residing in Turkey<\/strong> <strong>who receive salaries as employees from<\/strong> <strong data-start=\"947\" data-end=\"967\">employers abroad<\/strong> are <strong data-start=\"972\" data-end=\"1066\">not required to pay social security contributions to the Social Security Institution (SGK)<\/strong>. In other words, <strong data-start=\"1084\" data-end=\"1197\">foreign-sourced salary income does not generate any contribution obligation under Turkish social security law<\/strong>. Moreover, there is <strong data-start=\"1218\" data-end=\"1292\">no requirement to submit SGK registration or termination notifications<\/strong> for such individuals.<\/p>\n<p data-start=\"1318\" data-end=\"1918\">The social security status of <strong data-start=\"1348\" data-end=\"1388\"><a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/turkish-citizenship\/\">foreign nationals<\/a> residing in Turkey<\/strong> is further regulated under <strong data-start=\"1416\" data-end=\"1445\">Article 6 of Law No. 5510<\/strong>. According to this provision, foreigners residing in Turkey and working for <strong data-start=\"1522\" data-end=\"1543\">Turkish employers<\/strong> are generally considered insured and subject to <strong data-start=\"1592\" data-end=\"1613\">SGK contributions<\/strong>. However, if <a href=\"https:\/\/www.cbhukuk.com\/en\/residence-permit-refusal-appeal-in-turkey\/\"><strong>a foreign individual residing in Turkey<\/strong><\/a> receives a salary <strong data-start=\"1685\" data-end=\"1719\">solely from an employer abroad<\/strong> and is <strong data-start=\"1727\" data-end=\"1769\">not employed by any employer in Turkey<\/strong>, there is <strong data-start=\"1780\" data-end=\"1826\">no social security contribution obligation<\/strong>. Similarly, <strong data-start=\"1839\" data-end=\"1902\">registration and <a href=\"https:\/\/www.cbhukuk.com\/en\/employment-termination-codes\/\">termination notifications<\/a> are not required<\/strong> in this case. Foreign nationals residing in Turkey are advised to consult <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/english-speaking-lawyer-in-turkey\/\"><strong>an<\/strong> <strong data-start=\"137\" data-end=\"164\">English-speaking lawyer in Turkey<\/strong><\/a> to ensure proper understanding of <strong>the tax and legal implications of income earned from abroad<\/strong> and to maintain compliance with Turkish law.<\/p>\n<p data-start=\"1920\" data-end=\"2443\"><strong>In addition, bilateral social security agreements signed between Turkey and many countries should also be considered.<\/strong> These agreements aim to <strong data-start=\"2066\" data-end=\"2191\">protect employees\u2019 social security rights, prevent double contributions, and allow for the aggregation of service periods<\/strong>. Therefore, the <strong data-start=\"2208\" data-end=\"2239\">social security obligations<\/strong> <strong>for salaries received from foreign employers by persons residing in Turkey<\/strong> must be evaluated in light of both <strong data-start=\"2350\" data-end=\"2366\">Law No. 5510<\/strong> and, if applicable, the <strong data-start=\"2391\" data-end=\"2440\">relevant bilateral social security agreements<\/strong>.<\/p>\n<p data-start=\"2445\" data-end=\"2668\">This framework is also highly relevant for understanding the <strong>tax on foreign income in Turkey<\/strong>, <strong>as social security obligations and income tax considerations<\/strong> may interact for individuals <strong data-start=\"2633\" data-end=\"2665\">receiving income from abroad in Turkey<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"RECEIVING_SALARIES_FROM_ABROAD_IN_TURKEY_FROM_A_LABOR_LAW_PERSPECTIVE\"><\/span>RECEIVING SALARIES FROM ABROAD IN TURKEY FROM A LABOR LAW PERSPECTIVE<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"212\" data-end=\"558\"><strong data-start=\"212\" data-end=\"237\">Law No. 4857 on Labor<\/strong> is the <strong data-start=\"245\" data-end=\"349\">primary legislation regulating the <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/labor-law-in-turkey\/\">employment relationship<\/a> between employers and employees in Turkey<\/strong>. The provisions of the law define the <strong data-start=\"388\" data-end=\"421\">mutual rights and obligations<\/strong> of the parties to the employment contract and cover topics such as <strong data-start=\"489\" data-end=\"555\">job security, wages, overtime, annual leave, and <a href=\"https:\/\/www.cbhukuk.com\/en\/worker-compensation-rights-in-turkey\/\">worker compensation<\/a><\/strong>.<\/p>\n<p data-start=\"560\" data-end=\"1222\">However, for <strong data-start=\"573\" data-end=\"606\">Law No. 4857 to be applicable<\/strong>, the employer must either be <strong data-start=\"636\" data-end=\"658\">resident in Turkey<\/strong> or the employment contract must be established through a <strong data-start=\"716\" data-end=\"749\">workplace operating in Turkey<\/strong>. If the employer is located abroad and has <strong data-start=\"793\" data-end=\"858\">not established any legal headquarters or workplace in Turkey<\/strong>, the applicability of Turkish labor law ceases. According to <strong data-start=\"920\" data-end=\"963\">principles of international private law<\/strong>, the law governing the employment relationship is generally determined by the <strong data-start=\"1042\" data-end=\"1102\">legislation of the country where the employer is located<\/strong>. Since each country\u2019s labor law differs, the <strong data-start=\"1148\" data-end=\"1183\">rules of the employer\u2019s country<\/strong> will govern the employment contract.<\/p>\n<p data-start=\"1224\" data-end=\"1474\">When the employer is <strong data-start=\"1245\" data-end=\"1264\">resident abroad<\/strong> and does <strong data-start=\"1274\" data-end=\"1310\">not have any workplace in Turkey<\/strong>, the <strong data-start=\"1316\" data-end=\"1389\">protective provisions of Turkish labor law cannot be directly applied<\/strong>. Accordingly, the following labor rights <strong data-start=\"1431\" data-end=\"1471\">cannot be claimed under Law No. 4857<\/strong>:<\/p>\n<ul>\n<li data-start=\"1478\" data-end=\"1497\"><a href=\"https:\/\/www.cbhukuk.com\/en\/severance-pay-calculation\/\"><strong data-start=\"1478\" data-end=\"1495\">Severance pay<\/strong><\/a><\/li>\n<li data-start=\"1500\" data-end=\"1516\"><a href=\"https:\/\/www.cbhukuk.com\/en\/notice-pay-in-turkey\/\"><strong data-start=\"1500\" data-end=\"1514\">Notice pay<\/strong><\/a><\/li>\n<li data-start=\"1519\" data-end=\"1539\"><a href=\"https:\/\/www.cbhukuk.com\/en\/overtime-work-in-turkey\/\"><strong data-start=\"1519\" data-end=\"1537\">Overtime wages<\/strong><\/a><\/li>\n<li data-start=\"1542\" data-end=\"1567\"><a href=\"https:\/\/www.cbhukuk.com\/en\/annual-leave-calculation\/\"><strong data-start=\"1542\" data-end=\"1565\">Annual leave rights<\/strong><\/a><\/li>\n<li data-start=\"1542\" data-end=\"1567\"><strong><a href=\"https:\/\/www.cbhukuk.com\/en\/reinstatement-lawsuit\/\">Reinstatement lawsuit claims<\/a><\/strong>,<\/li>\n<li data-start=\"1570\" data-end=\"1644\"><strong data-start=\"1570\" data-end=\"1642\">Compensation payable in the event of <a href=\"https:\/\/www.cbhukuk.com\/en\/wrongful-termination\/\">unfair termination<\/a> or dismissal<\/strong><\/li>\n<\/ul>\n<p data-start=\"1646\" data-end=\"1788\">The existence and scope of such labor claims will be <strong data-start=\"1699\" data-end=\"1785\">determined according to the labor law of the country where the employer is located<\/strong>.<\/p>\n<p data-start=\"1790\" data-end=\"2131\">In conclusion, when the employer is located abroad and has <strong data-start=\"1849\" data-end=\"1875\">no workplace in Turkey<\/strong>, <strong data-start=\"1877\" data-end=\"1968\">neither Law No. 4857 nor Law No. 5510 on Social Insurances and General Health Insurance<\/strong> can be applied. In such cases, the employee\u2019s <strong data-start=\"2015\" data-end=\"2031\">labor claims<\/strong> will be evaluated under the <strong data-start=\"2060\" data-end=\"2128\">employment law of the foreign country applicable to the contract<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"TAX_CONSEQUENCES_OF_RECEIVING_FOREIGN_INCOME_FROM_ABROAD_IN_TURKEY\"><\/span>TAX CONSEQUENCES OF RECEIVING FOREIGN INCOME FROM ABROAD IN TURKEY<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"316\" data-end=\"863\"><strong>The<\/strong> <strong data-start=\"320\" data-end=\"376\">taxation of receiving salary from abroad in Turkey<\/strong> is of significant importance. <strong data-start=\"407\" data-end=\"441\">Individuals residing in Turkey<\/strong> who earn salary income from employers <strong data-start=\"480\" data-end=\"499\">resident abroad<\/strong> are <strong data-start=\"504\" data-end=\"535\">exempt from <a href=\"https:\/\/www.cbhukuk.com\/en\/vat-in-turkey\/\">value-added tax<\/a><\/strong> and, under certain conditions specified in <strong data-start=\"579\" data-end=\"626\">Article 23\/14-a of the Income Tax Law (GVK)<\/strong> and <strong data-start=\"631\" data-end=\"664\">Income Tax Communiqu\u00e9 No. 147<\/strong>, their income may also be <strong data-start=\"691\" data-end=\"717\">exempt from income tax<\/strong>. However, <strong data-start=\"728\" data-end=\"763\">independent professional income<\/strong> is <strong data-start=\"767\" data-end=\"803\">not covered under this exemption<\/strong> and is <strong data-start=\"811\" data-end=\"860\">taxed separately as a distinct type of income<\/strong>.<\/p>\n<p data-start=\"865\" data-end=\"1549\">If this exemption is <strong data-start=\"886\" data-end=\"927\">applied incorrectly or misinterpreted<\/strong>, the employee may face <strong data-start=\"951\" data-end=\"963\">tax loss<\/strong>. A <strong data-start=\"985\" data-end=\"997\">tax loss<\/strong> occurs when the taxpayer <strong data-start=\"1023\" data-end=\"1081\">fails to pay the tax on time or does not pay it at all<\/strong>. Under the <strong data-start=\"1093\" data-end=\"1114\">Tax Procedure Law<\/strong>, in addition to the unpaid tax, a <strong data-start=\"1149\" data-end=\"1173\">penalty for tax loss<\/strong> is applied. If aggravating factors such as <strong data-start=\"1217\" data-end=\"1278\">intentional misconduct or the use of fraudulent documents<\/strong> are present, the penalty can be <strong data-start=\"1311\" data-end=\"1343\">up to three times the amount<\/strong> and may result in <a href=\"https:\/\/www.cbhukuk.com\/en\/practice-areas\/debt-enforcement-in-turkey\/\"><strong data-start=\"1362\" data-end=\"1385\">enforcement actions in Turkey<\/strong><\/a>. Moreover, under certain conditions, if a tax loss occurs, <strong data-start=\"1445\" data-end=\"1485\">criminal prosecution for tax evasion<\/strong> may be initiated, and <strong data-start=\"1508\" data-end=\"1531\">custodial sentences<\/strong> can be imposed.<\/p>\n<p data-start=\"1551\" data-end=\"1894\">Therefore, it is <strong data-start=\"1568\" data-end=\"1580\">critical<\/strong> that the <strong data-start=\"1590\" data-end=\"1663\">taxation of payments made by foreign employers to employees in Turkey<\/strong> is <strong data-start=\"1667\" data-end=\"1711\">carefully reviewed by <a href=\"https:\/\/www.cbhukuk.com\/en\/legal-services\/tax-lawyer-in-turkey\/\">a tax law attorney in Turkey<\/a><\/strong> to ensure compliance and avoid potential penalties. Proper legal guidance is essential for both <strong>tax on foreign income in Turkey<\/strong> and <strong data-start=\"1838\" data-end=\"1880\">receiving salary from abroad in Turkey<\/strong> situations.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row height_auto\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"w-html\"><div class=\"cb-legal-box\">\n    <div class=\"cb-legal-inner\">\n        <p class=\"cb-legal-text\">\n            You can explore our other <a href=\"https:\/\/www.cbhukuk.com\/en\/blog\/\" class=\"cb-legal-link\">articles<\/a> or contact us for your legal support inquiries.\n        <\/p>\n        <div class=\"cb-legal-action\">\n            <a href=\"https:\/\/www.cbhukuk.com\/en\/contact-us\/\" class=\"cb-legal-btn\">Contact Us<\/a>\n        <\/div>\n    <\/div>\n<\/div>\n\n<style>\n.cb-legal-box {\n    background: #ffffff;\n    border: 2px solid #8b3516; \n    border-radius: 8px;\n    padding: 30px;\n    margin: 30px auto;\n    width: 100%;\n    box-sizing: border-box;\n    font-family: Arial, Helvetica, sans-serif;\n    box-shadow: 0 4px 15px rgba(0, 0, 0, 0.05);\n}\n\n.cb-legal-inner {\n    display: flex;\n    align-items: center;\n    justify-content: space-between;\n    gap: 30px;\n}\n\n.cb-legal-text {\n    margin: 0;\n    font-size: 19px;\n    color: #333333;\n    line-height: 1.5;\n    flex: 2;\n}\n\n.cb-legal-link {\n    color: #8b3516;\n    text-decoration: underline;\n    font-weight: bold;\n}\n\n.cb-legal-action {\n    flex: 1;\n    text-align: right;\n}\n\n.cb-legal-btn {\n    display: inline-block;\n    background-color: #8b3516;\n    color: #ffffff !important;\n    padding: 14px 28px;\n    border-radius: 5px;\n    text-decoration: none !important;\n    font-weight: bold;\n    font-size: 16px;\n    transition: all 0.3s ease;\n    border: 2px solid #8b3516;\n    white-space: nowrap;\n}\n\n.cb-legal-btn:hover {\n    background-color: #000000;\n    border-color: #000000;\n}\n\n\/* MOB\u0130LDEK\u0130 G\u00d6R\u00dcNT\u00dcY\u00dc D\u00dcZELTEN KISIM *\/\n@media (max-width: 768px) {\n    .cb-legal-box {\n        padding: 20px 15px; \/* Yan bo\u015fluklar\u0131 azaltt\u0131k *\/\n        margin: 20px 0;\n        width: 100% !important;\n    }\n    \n    .cb-legal-inner {\n        flex-direction: column !important;\n        gap: 15px; \/* Yaz\u0131 ve buton aras\u0131ndaki bo\u015flu\u011fu daraltt\u0131k *\/\n    }\n    \n    .cb-legal-text {\n        font-size: 16px; \/* Yaz\u0131y\u0131 mobilde bir t\u0131k k\u00fc\u00e7\u00fcltt\u00fck ki s\u0131\u011fs\u0131n *\/\n        text-align: center !important;\n        width: 100%;\n    }\n    \n    .cb-legal-action {\n        width: 100%;\n        text-align: center !important;\n    }\n    \n    .cb-legal-btn {\n        width: 80%; \/* Butonun ekran\u0131 komple bo\u011fmas\u0131n\u0131 engellemek i\u00e7in %80 yapt\u0131k *\/\n        padding: 12px 20px;\n        font-size: 15px;\n        display: inline-block; \/* Block yerine inline-block + %80 daha zarif durur *\/\n    }\n}\n<\/style><\/div><\/div><\/div><\/div><\/div><\/section><section class=\"l-section wpb_row us_custom_0a0f4a9a height_auto\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_grid cols_1 laptops-cols_inherit tablets-cols_inherit mobiles-cols_1 valign_top type_default stacking_default\"><div class=\"wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_text_column us_custom_275474cc has_text_color\"><div class=\"wpb_wrapper\"><p><strong>LEGAL DISCLAIMER:<\/strong> The copyright of the articles and content on our website belongs to Av. Orbay \u00c7okg\u00f6r, and all articles are published with electronically signed time stamps to establish ownership. If any articles on our website are copied or summarized without providing a source link and published on other websites, legal and criminal proceedings will be initiated.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"THE LEGAL ASPECT OF RECEIVING INCOME ABROAD WHILE RESIDING IN TURKEY With the advancement of computer technologies and the widespread use of the internet, faster and easier data transfer has made remote work more accessible. In particular, the Covid-19 pandemic marked a significant turning point in the expansion of remote work. Many companies adopted remote...","protected":false},"author":1,"featured_media":5166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[85,85],"tags":[],"class_list":["post-5167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/posts\/5167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/comments?post=5167"}],"version-history":[{"count":0,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/posts\/5167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/media\/5166"}],"wp:attachment":[{"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/media?parent=5167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/categories?post=5167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cbhukuk.com\/en\/wp-json\/wp\/v2\/tags?post=5167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}