Turkey imposes taxes on its residents based on their global income, while non-residents are subject to taxation solely on income derived from Turkish sources.
Social security contributions in Turkey undergo calculation based on specific salary thresholds, ranging from a minimum of TRY 10,008.00 to a maximum of TRY 75,060.00 per month, during the period spanning from January 1, 2023, to July 31, 2023. These contributions are shared between the employer and the employee and are categorized according to labor classifications. Turkish nationals typically bear a general rate of 20.5% for employers (with the possibility of a 5% reduction to 15.5% under specific conditions) and 14% for employees.
For foreign nationals who maintain coverage under their home country’s social security system, there is a three-month exemption from Turkish social security premiums, provided they furnish proof of their foreign coverage to the local social security office. If a social security treaty exists between the home country and Turkey, the exemption period may be extended based on the provisions of the treaty. In cases where the employee is not subject to foreign social security, Turkey typically enforces full contribution requirements.
It’s noteworthy that the portion of social security contributions paid by the employee is eligible for deduction when determining taxable income.