What is Payroll in Turkey ?
Payroll Turkey is a new way of working that appeared in Turkey in the 80s (This includes all cities like Istanbul, Ankara, Izmir, Antalya and others). This concept which allows you to become independent puts in relation 3 economic partners, (the employee, the customer and the Payroll Turkey company), including for the employee the wage system, can be used to work occasionally as a self-employed , to test an idea before embarking on the creation of a business or simply to perpetuate its employment.
The principle is simple. The Payroll Turkey company finds his clients, negotiates, then performs his services. The Umbrella Company Turkey invoices and collects the fees or the amount of the services and transfers them to in the form of salary, after deduction of social charges and of a commission for management costs.
The commission for management costs includes all the services and advantages intended to simplify and optimize the administrative, accounting and legal functioning of the activity of a supported operator, allowing him to devote himself usefully to his commercial development.
Who is Payroll in Turkey for ?
The profiles of the employee working under Payroll in Turkey companies are numerous:
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, entrepreneurs wishing to test their projects before creating their own structure,
Retired or pre-retired person wishing to maintain a professional activity because of their experience and take advantage of the combination of employment and retirement,
Young graduates wishing to acquire a first professional experience either at the end of their course or within the framework of their studies,
Employees on the job wishing to exercise 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 Turkey company you need to know some important thing regarding taxation in this country.
The value added tax VAT, called in Turkish « KDV », is an indirect tax on consumption, it is a tax instituted in principle by Law No. 3065 in 1984. Although businesses pay this tax based on their sales profits, this tax is mainly deducted from the end consumers of the goods, that is, it is collected 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 ratios: 1%, 8% and 18%.
Calculation of VAT or KDV in Turkey :
The VAT or KDV is calculated by subtracting the tax rates from the sales prices of the products. Consequently, the tax increases according to the high prices 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 pounds and the tax rate is 18%, so the calculation is as follows:
1000x (1 + 0.18) = 1000x 1.18 = 1180 pounds.
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 pounds and the tax rate is 18%. The calculation is therefore as follows:
1180 ÷ (1+ 0.18) = 1180 ÷ 1.18 = 1000 pounds → 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%, they are based on products:
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 meters.
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 and other products. and services.
Products from which 18% is taken:
They are imposed on products which are not considered essential consumables, with a few exceptions, such as: communication products, furniture, electrical appliances, certain animals, certain spices and other products and services.