Why Umbrella Company in Turkey?
Experience the Benefits of Scale with our Umbrella Company in Turkey. Our payroll umbrella services are designed to streamline your HR service tasks, including payroll, benefits, and employee compensation management. When you team up with San Global, you can efficiently oversee payroll for your workforce in Turkey. This partnership helps you reduce payroll and tax-related risks while ensuring legal compliance.
Ensure Legal Compliance
At San Global, our payroll umbrella services are tailored to support your temporary posted workers. By teaming up with us, you can alleviate numerous payroll and tax-related risks. Furthermore, our co-employer model enables you to mitigate common risks associated with Turkish Labor Law, OHS Law, Social Security Legislation, and all other pertinent Turkish regulations. Employees begin benefiting from the Turkish Social Security System from their date of joining.
Cost-Efficient - Shared Reponsibilities
Our Co-Employer model is particularly designed for temporary posted workers. With this model, international companies can operate in Turkey without the need for a physical presence in the country. You can quickly expand into the Turkish market without the lengthy process of establishing a subsidiary, liaison office, or company. San Global’s Umbrella Company services in Turkey offer you a cost-effective, dependable, and efficient solution for remotely managing your employees in Turkey.
Umbrella Company Turkey Guide
The Definition of Wage According to Turkish Legislation
The term ‘wage’ is defined in various Turkish laws and regulations. Article 32 of Turkish labor law provides a general definition of wage, stating:
‘Wage is, in general terms, the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by them.’
A more comprehensive description of wage can be found in Article 61 of Law No: 193, which pertains to the Income Tax Law. This article defines wage as follows:
‘Wage is a benefit provided in the form of cash or in-kind, or represented by cash, in exchange for services rendered by employees who are registered and subject to an employer. The true nature of wage remains unchanged, regardless of whether it is labeled as indemnity, allowance, cash compensation (Financial Liability Indemnity), allocation, increment, advance, remuneration, attendance fee, premium, bonus, in return for an expense, or determined as a specific percentage of revenue, provided that it does not possess the attributes of a partnership.’
As outlined in Article 32 of the Turkish Labor Law, wage consists of three key components:
- Wage is remuneration provided in exchange for performed work.
- Wage is disbursed either by an employer or by a third party.
- Wage is issued in the form of cash.
Under Law No: 193 on Income Tax, as described in Article 61, the components of wage are defined as follows:
- The recipient of the wage is under the jurisdiction of an employer.
- The work is closely tied to a specific place of business.
- The payment is made in consideration of services rendered.
Tax treatment of wages and salaries in Turkey is governed by the Turkish Income Tax Law, particularly Article 61 of Law No. 193. According to this legislation, all payments categorized as wages, which include salaries and other forms of compensation, are subject to income tax. This tax obligation applies not only to the basic salary but also extends to various components of compensation, such as allowances, bonuses, commissions, and in-kind benefits at their market value. Additionally, employees’ contributions to social security institutions and other relevant premiums are considered when determining the taxable income. Turkish tax laws provide specific deductions, such as those associated with social security premiums, labor union membership fees, and life insurance premiums. However, income tax is levied on the total income after these allowable deductions, in accordance with the progressive tax rates established in the tax law.
In an effort to promote social welfare, certain benefits and allowances are exempt from income tax. For instance, benefits provided by employers in the form of free meals within the workplace or their annexes are not subject to taxation. Similarly, benefits given to employees due to events like births and marriages are partially or fully exempt from income tax, provided they do not exceed specified limits. Moreover, special deductions are applied for disabled employees, based on the degree of disability, offering additional support to individuals with reduced working capacity. Understanding these tax regulations is essential for both employers and employees to ensure compliance with Turkish tax laws while optimizing their financial planning.