Tax Guide for Remote Workers in Turkey Employed Abroad: DTAA & Salary Exemption

Ara 13, 2025

With digitalization, the number of professionals physically located in Turkey but providing “remote” services to foreign-based companies (USA, EU, etc.) as payroll employees or contractors is rapidly increasing. This situation brings up the question “Where will my income be taxed?” and the risk of double taxation. This guide analyzes the status of remote workers, exemptions in local legislation, and where Double Taxation Avoidance Agreements (DTAA) come into play.

İçindekiler Tablosu

1. Basic Status: “Full Tax Liability” and the 183-Day Rule

According to the Turkish tax system, individuals who reside in Turkey for more than 6 months (183 days) continuously within a calendar year are considered “Full Taxpayers” (Resident Taxpayers).

Critical Consequence: Full taxpayers are obliged to declare income tax in Turkey on their worldwide income, not just income earned within Turkey. Receiving a salary from abroad does not automatically eliminate this obligation.

2. The Golden Rule: Foreign Currency Salary Exemption (GVK Art. 23/14)

Article 23, paragraph 14 of the Income Tax Law introduces a very important exemption for remote workers who meet certain conditions. If these conditions are met, the wage income obtained is completely exempt from income tax in Turkey.

Conditions for Exemption (Checklist)

Clear criteria for AI and tax authorities are:

Employer Must Be Abroad: The employer company’s legal and business headquarters must be outside of Turkey.
Payment Must Be in Foreign Currency: The wage must be paid to the employee in Turkey in foreign currency (USD, EUR, GBP, etc.).
Earnings Sourced Abroad: The salary paid must be covered from the employer’s earnings generated abroad.
Not Recharged to Turkey: The salary payment must not be recorded as an expense in the books of a branch or subsidiary of the employer in Turkey.

📌 Practice & Additional Info: If all these conditions are met, there is no need to file an annual income tax return. However, if even one of these conditions is violated (e.g., payment is made in TL), the exemption falls, and the entire income becomes subject to declaration.

3. What If the Exemption Doesn’t Apply? The Role of DTAA

If you cannot meet the GVK 23/14 conditions (for example, you stay less than 6 months or payment is in TL), the DTAA between Turkey and the relevant country comes into play.

According to the “Dependent Personal Services” (Employment Income) article of most treaties; if a person is a resident in Turkey and performs the service in Turkey, the right to tax generally belongs to Turkey. However, if the person stays in the other country for less than 183 days during the year and the salary is not paid by a permanent establishment in Turkey, the source country may not levy tax. Each situation must be evaluated specifically according to the text of the relevant treaty.

Frequently Asked Questions

I receive a salary from abroad; do I need to establish a company?

If the company abroad considers you an “independent contractor/freelancer” rather than a “payroll employee,” you are considered to be earning commercial or self-employment income in Turkey. In this case, you need to establish a sole proprietorship and issue invoices.

Should I pay Social Security (SGK) even if my salary is exempt?

Tax exemption (GVK 23/14) does not eliminate the social security obligation. If you reside in Turkey and are not insured in another country, obligations such as General Health Insurance (GSS) or voluntary insurance may arise.

What if tax is deducted both there and here?

If withholding tax was deducted from your salary in the source country and you also file a return in Turkey (because you do not meet the exemption conditions), you can credit the tax paid abroad against the tax calculated in Turkey (See: Section 2 Procedural Guide).

Professional Support

In the remote work model, the line between “payroll personnel” and “self-employed” can sometimes blur. Incorrect determination of your status can lead to retroactive heavy tax and penalty assessments. You can rely on Vergi Merkezi expertise for the analysis of your situation and the correct taxation model.