INCOME TAX: Liabilities

There are two types of liabilites from the perspective of Income Tax.

Full liability tax payers are taxed over their earnings and revenues acquired in and outside Turkey.

Limited liability tax payers are taxed only from their earnings and revenues acquired in Turkey.
In principal, revenues earned outside Turkey is subject to taxation at residency (Country of origin)

 

Full Liability Tax Payer

Those regarded as Full Liability Tax Payer as described at the 3rd and 4th Articles of
Income Tax Law (Nr 193);

1.Those who have their legal residence in Turkey.
2.Turkish citizens employed by Governmental authority and incorporated businesses  or  Turkey-centered organizations and enterprises who are residing at foreign countries due to mentioned Governmental authority and incorporated businesses  or  Turkey-centered organizations and enterprises works/businesses.
(Such individuals (real persons) are not taxable for their income provided that their income at the realized country already taxed -income tax or like-)
3.Those who reside in Turkey for a continuous period of more than 6 months within one calendar year(*)

* Read exception:

Income Tax Law (Nr.193)
Article: 5 - Occasions regarded as “Unsettled“
Foreigners listed hereunder are regarded as unsettled at Turkey even if they do stay at
Turkey for more than six months;

1. Businessman, scientists and artists, specialists, officers, press and broadcasting reporters
   coming to Turkey for a specific and temporary task or work, and others with identical
   situations coming for education,health treatment,rest and travel purposes
2. Detained or left at Turkey due to conviction,imprisonment or disease reasons beyond one’s control.

Limited Liability Tax Payer

Individuals (real persons) with “non-resident“ status at Turkey are subject to taxation for their revenues and earnings only from Turkey

Real persons not settled in Turkey shall be taxed only from the earnings and revenues they have acquired in Turkey and regarded as non-resident - Limited Liability Tax Payer.

Turkish Workers employed abroad with legal residence in Turkey shall not declare income for taxation related with their earnings at abroad.
Full Liability status is applicable when a worker stays more than 6 months within one calendar year at Turkey or permenant return from abroad to Turkey.

 

Summary

 

	Full Liability	Limited Liability
Condition	Resident at Turkey	Non-Resident at Turkey
Taxed	from earnings in Turkey and abroad	only from earnings acquired at Turkeyident at Turkey