Payroll Turkey is a new way of working that appeared in Turkey in the 1980s . It includes cities like Istanbul, Ankara, Izmir, Antalya and others. This concept which allows you to become independent, connects three economic partners, the employee, the customer and the Payroll Turkey company. For the employee, the wage system can be used either to work occasionally as self-employed, to test out an idea before launching a business or simply to continue their employment.

What is Payroll in Turkey ?

The principle is simple. The Payroll Turkey company finds clients, negotiates, then provides its services. The Umbrella Company Turkey invoices and collects fees, transferring them in the form of a salary, after deducting social charges and a commission for management costs.

The commission for these management costs includes all services and advantages intended to simplify and optimise the administrative, accounting and legal functioning for a supported operator. This allows supported operators to devote themselves to their business activities.

Who is Payroll in Turkey for ?

The profiles of employee working under Payroll in Turkey companies are numerous and include:

Job seekers, executives or non-executives looking for work and wishing to intervene on an ad-hoc basis for assignments on behalf of client companies.

Business creators and entrepreneurs wishing to test their projects before creating their own business structures.

Retired or pre-retired persons wishing to maintain a professional activity thanks to their experience, and who can take advantage of the combination of employment and retirement.

Young graduates wishing to acquire their first professional experience, either at the end of their course or within the framework of their studies.

Employees on the job wishing to add a complementary activity to their main job.

Part-time or selected time employees wishing to supplement their income with occasional activities.

Professionals working on a timeshare basis and who wish to group together all of their activities within the framework of a single employer in Payroll Turkey.

Value Added Tax (VAT), or KDV In Turkey and Payroll Turkey

Before joining a Payroll in Turkey company, you need to know a few important things regarding taxation in this country.

The value added tax (VAT), which is called KDV in Turkey, is an indirect tax on consumption, instituted in principle by Law No. 3065 in 1984. Although businesses pay this tax based on their sales profits, the tax is mainly deducted from the end consumer of the goods. Put otherwise, it is collected ultimately from the people who consume the goods. The tax applies in almost all countries of the world, and is imposed in Turkey according to the importance of goods consumed according to three rates: 1%, 8% and 18%.

Calculation of VAT or KDV:

The VAT or KDV is calculated by subtracting the tax rates from the sales prices of products. Consequently, the tax increases in accordance with the price of the sale of the products, from the exit of the product to the consumer.

KDV calculation (included)

The simplest way to calculate value added tax is as follows: Product price x 1 + tax rate. For example, the price of the product is £1,000 and the tax rate is 18%, so the calculation is as follows:

1000x (1 + 0.18) = 1000x 1.18 = £1180.

To calculate the KDV not included, simply replace the multiplication process by dividing. That is to say, the price of the product ÷ (1 + tax rate).

For example, the product price after tax deduction is £1180 and the tax rate is 18%. The calculation therefore is:

1180 ÷ (1+ 0.18) = 1180 ÷ 1.18 = £1000 → the price of the product before tax (before tax deduction).

KDV rate by product:

Three rates of value added tax are levied on products, namely 1%, 8%, 18%.

Products from which 1% is taken:

They are imposed on wheat flour and its derivatives, considered as essential consumables, as well as residential units which do not exceed 150 square metres.

Products from which 8% is taken:

They are also taxed on essential consumer goods which are not part of luxury goods such as meat and its derivatives, milk and milk products, eggs and legumes, honey, jam, molasses and sweets, certain animals, plus other products and services.

Products from which 18% is taken:

This rate is imposed on products which are not considered essential consumables, with a few exceptions. These include communications products, furniture, electrical appliances, certain animals, certain spices,  plus other products and services.



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