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Turkish serbest meslek contractors attract 20% stopaj withholding. Eser sözleşmesi (result-based contracts) carry lower reclassification risk. Kıdem tazminatı backdating on reclassification is a major financial exposure. Rippling handles TRY payments and stopaj tracking.
Turkey has a significant contractor and freelance market, particularly in technology, creative industries, and professional services in Istanbul and Ankara. Self-employed individuals (serbest meslek erbabı) operate with a professional taxpayer ID (vergi kimlik numarası) and issue professional receipts (serbest meslek makbuzları). Companies issue regular VAT invoices. Turkey's SGK and Revenue Administration actively audit contractor arrangements, particularly single-client, long-duration engagements.
Moderate-to-high risk. SGK and Revenue Administration actively audit single-client, long-duration arrangements. Reclassification triggers: backdated SGK contributions (20.5% employer + 14% employee), kıdem tazminatı (30 days/year retroactively), notice pay, and Labor Law protections. Kıdem tazminatı exposure makes Turkey's reclassification risk particularly costly.
Turkey's Labor Law (Law 4857) applies a substance-over-form test. Employment indicators: personal performance under direction, single-client dependency, regular wages, working hours set by client, integration into client structure. Genuine contractors: registered as a sole trader (serbest meslek erbabı) or company, multiple clients, result-based fixed-price contracts.
Withhold 20% stopaj from serbest meslek payments; remit monthly to GIB via muhtasar declaration. No withholding for corporate contractors. If reclassification: backdated SGK, kıdem tazminatı, and Labor Law entitlements.
Serbest meslek erbabı: progressive income tax (15–40%) on net professional income; Bağ-Kur SGK contributions; 20% VAT on invoices; stamp duty 2% on receipts. Annual income tax return by March 31. Corporate contractors: standard corporate tax (25%) and VAT obligations.
TRY via SWIFT; EUR/USD for international. Serbest meslek contractors: engaging company withholds 20% stopaj before payment. Corporate contractors: no withholding. Rippling tracks stopaj withholding.
Converting to employment requires Turkish entity or EOR. Employment contract, SGK registration, monthly muhtasar declaration from day one. Kıdem tazminatı accrual begins from first day.
Rippling Global Contractor for Turkey: onboards serbest meslek and corporate contractors, TRY payments with stopaj tracking, compliant eser sözleşmesi templates. thePeopleStack strongly recommends EOR for ongoing, integrated roles due to kıdem tazminatı reclassification exposure.
Turkish self-employed professionals (serbest meslek erbabı) pay income tax on their net professional income at progressive rates (15–40%), plus a 2% stamp duty on receipts. They pay SGK contributions as self-employed (Bağ-Kur) — a significant cost. VAT registration required above a threshold; professional service invoices typically carry 20% VAT (2024 rate). The engaging company must withhold 20% stopaj (withholding tax) on payments to serbest meslek professionals and remit to GIB.
Yes. The engaging company must withhold 20% stopaj (income tax withholding) on payments to serbest meslek (self-employed professional) contractors and remit to GIB monthly. This is not a reclassification indicator — it is the statutory withholding mechanism for self-employed professional income in Turkey. Corporate contractors (limited companies) are not subject to stopaj on most services.
Yes. Rippling Global Contractor supports TRY and EUR/USD payments to Turkish contractors. TRY via SWIFT; international currencies for cross-border payments. Rippling supports stopaj withholding tracking for serbest meslek contractors.
For long-term, integrated roles, EOR is significantly safer. Turkish SGK and Revenue Administration actively audit single-client, direction-and-control arrangements. Kıdem tazminatı backdating on reclassification is a major financial exposure — 30 days' gross per year of service retroactively owed.
