Expert Support to Your Liaison Office Workforce
We offer the most efficient human resources and payroll solutions for the special status of Liaison Offices.
Unlike capital stock companies, an exemption is applied to the Liaison Office employees with regards to the income tax .
According to the exemption clause in the law, the wages paid in the form of foreign currency to the employees working in the liaison offices of foreign employers in Turkey;
The wages paid by the employer in the form of foreign currency, based on the earnings obtained outside of Turkey, to the employees who work with the employers subject to limited liability whose legal and registered workplace is not located in Turkey;
Employers subject to limited liability, whose legal and registered workplaces are not located in Turkey, in the regional management centers established based on the permission obtained from the Ministry of Industry and Technology, the wages paid in the form of foreign currency to the employees they employ within the scope of the activity permit of the center, out of Turkey, are exempted from income tax.
Due to the exemption, the income tax deduction in withholding tax declaration of the employees of Liaison Offices established under the Foreign Direct Investments Law and unable to carry out commercial activities is zero. On the other hand, social security tax deductions are made on the income of employees of Liaison Offices. Because of the aforementioned tax advantage; monitoring personnel transactions, performing payments in foreign currency from abroad, calculating payrolls accurately and lawfully require a high level of care and attention. Thanks to the experience and know-how of our organization, you can get world-class service for your Liaison Office's needs in the field of Human Resources without compromising compliance with local laws. CottGroup® is always with you for your payroll outsource needs, just in time.