Turkey has many opportunities for expansion, with a population of 83 million people and strong industries including agriculture, tourism, and manufacturing. There are many tax requirements for businesses in Turkey, including more than 15 required tax payments each year, and many unfamiliar taxes such as check transaction taxes, stamp duties on contracts, and advertising taxes. There are different corporate tax rates based on corporation type and distinction.

Payroll and Tax Considerations in Turkey

  • The minimum wage is TRY 2,943 per month
  • Wages for overtime work are 150% of the normal hourly rate. If the employee chooses, they can take 1.5 hours off for every hour of overtime worked instead of being compensated
  • Employees are entitled to severance pay when they have been dismissed with advanced notice. Severance is 1 month gross wages for every year of service
  • Personal income tax rates vary between 15-40% depending on annual taxable income

HR and Statutory Requirements in Turkey

  • After 1 year of service employees are entitled to the following annual leave: 14 days for 1-5 years of service, 20 days for 5-15 years of service, and 26 days for more than 15 years of service
  • Employees receive a maximum of 1 week paid sick leave with a medical report. Sick leave is paid by the employer
  • Female employees receive 16 weeks of maternity leave, with 8 weeks before birth and 8 weeks after
  • New fathers in the private sector receive 5 days of paid paternity leave
  • The retirement age is 60 for males and 58 for females. They must have contributed 7,200 days (almost 20 years) of contributions to the National Social Security program

Holidays in Turkey

  • January 1 – New Year’s Day
  • April 23 – National Sovereignty and Children’s Day
  • May 1 – Labor and Solidarity Day
  • May 3 – Ramadan Feast
  • May 4 – Ramadan Feast holiday
  • May 5 – Ramadan Feast holiday
  • May 19 – Commemoration of Atatürk, Youth and Sports Day
  • July 10 – Sacrifice Feast
  • July 11 – Sacrifice Feast Day 2
  • July 12 – Sacrifice Feast Day 3
  • July 13 – Sacrifice Feast Day 4
  • July 15 – Democracy and National Unity Day
  • August 30 – Victory Day
  • October 29 – Republic Day

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