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SERVICES
Payroll Services in Turkey
Your employees’ payroll processes require sensitivity and confidentiality. AAA CPA Services performs complete salary calculations, completes social security and tax deductions, and completes your legal filings on time. It also provides support for work and residence permit processes for foreign employees.
Services:
- Payroll preparation and salary calculation
- SGK and İŞKUR notifications
- Benefits and leave management
- Foreign employee leave and payroll compliance
Service Processes
AAA aims to provide the best service by combining traditional accounting rigor with modern technology.
Turkey offers access to a talented, young, and ambitious pool of professionals. Expanding your workforce to Turkey is a strategic and beneficial move. However, as with every other country, international companies often encounter obstacles when dealing with local bureaucracy.
Turkish employment regulations are notoriously detailed and protective of employees, and they are strictly enforced. From navigating complex social security websites to understanding ever-changing tax brackets, 3A SMMM’s expert team is ready to help foreign entities with everything they need to know about payroll and human resources in Turkey.
Compliant Payroll Services in Turkey and HR Solutions
Managing a payroll in Turkey is vastly different from managing one in the US or the UK. It’s not just a matter of transferring funds to a bank account at the end of the month. The Turkish social security system is deeply integrated with SGK (Social Security Institution). According to the law, every employee registration, termination, or salary change must be reported electronically through government portals.
Outsourced Payroll Services in Turkey for Foreign Employers
In a country like Turkey, with its complicated tax and social security rules, attempting to handle payroll in-house is often a recipe for disaster due to language barriers and technical complexity. This is why 3A SMMM’s outsourced payroll services are in high demand.
When you outsource your payroll in Turkey, you’re not just getting a calculator; you’re also getting protection against noncompliance. Our professional team handles the entire payroll cycle, including calculating gross-to-net salaries, processing overtime payments, and ensuring that severance pay reserves are accurately tracked, all with guaranteed confidentiality.
Employer of Record (EoR): Hiring Without a Local Entity
The employer of record model is one of the most innovative solutions for business expansion. Traditionally, if you wanted to hire a salesperson or developer in Istanbul, you had to incorporate a local company, which was a lengthy and expensive process.
An EoR removes this barrier and allows you to speed up the process. With an EoR arrangement, the service provider legally acts as the employer of the staff you wish to hire. They handle the employment contract, pay the mandatory social security contributions, and file the taxes. Meanwhile, you retain full control over the employee’s day-to-day activities and duties.
At 3A SMMM, we offer comprehensive, highly efficient EoR services to international companies, allowing them to hire remote Turkish talent in a matter of days without any hassle.
Understanding the Turkish Taxation System for International Entities
Turkey’s tax regime is based on OECD standards, making it familiar to European and North American investors. However, it has some unique characteristics that may confuse foreign investors.
The Turkish tax system is primarily based on residency. If your company’s legal seat or place of management is in Turkey, it is considered a “full taxpayer” and is taxed on its worldwide income. If your company is a branch or a non-resident entity, you are a “limited taxpayer” and are only taxed on income generated within Turkey. Understanding this distinction is the first step in effectively planning for foreign entities in Turkey.
Compliance with Corporate Tax in Turkey
The backbone of the Turkish tax system is corporate tax. Although corporate tax in Turkey has been set at 25%, the calculation of the tax base involves various non-deductible expenses and specific exemptions that differ from those in other jurisdictions.
For foreign entities, the declaration process can be difficult and complicated. Companies must submit quarterly provisional tax returns in addition to an annual return. This means you are effectively paying your taxes in installments throughout the year. Failure to file and pay quarterly reports can result in fines and interest charges.
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Accounting and Financial Reporting Services
AAA CPA Services meticulously manages all of your company's accounting processes.
Tax Consulting and Compliance Services
AAA CPA Services prepares your VAT, withholding tax, provisional tax, corporate tax and all other returns accurately, on time and in compliance with the legislation.
Payroll and Human Resources Services
AAA CPA Services makes complete salary calculations, social security and tax deductions, and submits your legal notifications on time.
Company Establishment and Restructuring Services
We provide fast and legal company establishment services for local and foreign investors who want to start a business in Turkey.
International Tax and Double Taxation Consultancy
AAA CPA Services provides international tax consulting to multinational corporations to optimize their tax liabilities.
Technology and Automation Supported Financial Solutions
We manage your accounting processes faster and more accurately with our technology-focused solutions.
Payroll and HR in Turkey FAQS
What are the mandatory social security contributions in Turkey?
The total contribution is approximately 37.5% of the gross salary, divided between the employer (about 22.5%) and the employee (about 15%). This covers health, retirement, and unemployment insurance.
How do I obtain a work permit for a foreign employee?
The employer must submit the required documents to the Ministry of Labor to prove that the company meets the “five Turks to one foreigner” employment ratio and pays the minimum required salary.
Can I hire employees in Turkey through an EoR?
Yes, an Employer of Record (EoR) legally hires staff on your behalf, enabling you to employ workers in Turkey without setting up a local legal entity.
What is the "Severance Pay" (Kıdem Tazminatı) rule?
Employees who have worked for at least one year and are terminated without just cause (or who retire) are entitled to one month’s gross salary for each year of service, up to a cap determined by the government.
Are payroll records required to be in Turkish?
Yes, according to Turkish commercial and labor laws, all official payroll records, pay stubs, and employment contracts must be written in Turkish for auditing purposes.