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Working with a Foreign Employer: Withholding and Tax

30 Nisan 2026 Foreigners and Citizenship Law 1 dk okuma 39 görüntülenme

Turkish citizens can work remotely from Türkiye for a foreign company. Tax and SSI issues are critical.

Working Models

  • Independent contract:Providing services as a freelancer/sole proprietorship
  • As an employee:Representation of a foreign company in Türkiye or directly

Tax

  • Full taxpayer (resident in Türkiye) → whole world income
  • Annual declaration is mandatory
  • Advantage if there is a double taxation agreement

SGK

  • SGK registration is mandatory in Türkiye
  • If the employer is abroad, the person pays premiums such as Bağ-Kur (4-B) in his/her own name
  • 4-A insurance if the employer opens a representative in Türkiye

Sole Proprietorship Advantage

  • Tax optimization
  • Expense write-off
  • VAT refund (for export of services abroad)
  • Official contract

VAT Exemption for Service Exports

  • Service to foreign customers → VAT exemption
  • Certain conditions (service abroad should be used)
  • You can get a refund Consider setting up
  • Check the tax treaty (no double taxes)
  • Register with SSI (for social security)

Tax and labor law lawyer recommended.

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