Employee vs Contractor in Turkey for Foreign Company Work
A Turkey based person working for a foreign company must distinguish employee income from independent contractor or company income. Salary, contractor invoices and company to compa
Last reviewed: 19 August 2026
Author: Evren Özmen, CPA / SMMM
Short Answer
A Turkey-based person working for a foreign company must distinguish employee income from independent contractor or company income. Salary, contractor invoices and company-to-company services have different Turkish tax, VAT, social security and service export deduction consequences. The label in the contract is important but not enough; actual working facts also matter.
Short Summary
Employee vs contractor classification is one of the first tax questions for foreign-company work performed from Turkey. Employees usually need salary and treaty analysis, while contractors and Turkish companies may need registration, invoicing, VAT and 89/13 or 10/1-g service export review.
Classification Table
| Fact | Employee signal | Contractor signal |
|---|---|---|
| Fixed working hours | Stronger | Weaker |
| Employer control | Stronger | Weaker |
| Own business risk | Weaker | Stronger |
| Multiple clients | Weaker | Stronger |
| Invoices issued | Weaker | Stronger |
| Paid salary | Stronger | Weaker |
Case Review
Send contract, work schedule, reporting structure, invoice model, client country, tools/equipment facts and payment route.
Email: info@ozmconsultancy.com
Subject line: Employee vs contractor Turkey review
FAQ
Can an employee use the 100% service export deduction?
Usually no. Salary should be reviewed separately from business or professional service income.
Can a contractor use it?
Possibly, if the contractor provides eligible services to a foreign client, the service is used abroad and all documentation conditions are met.
Durumunuzu Birlikte Değerlendirelim
Yabancı şirketle çalışma modeliniz, müşteri ülkesi, hizmet türü ve mevcut şirket yapınıza göre ilk riskleri görmek için iletişim sayfasından e-posta gönderin.
Doğrudan iletişim: info@ozmconsultancy.com | +90 216 352 29 61 | WhatsApp’tan yazın
Sources
- Remote work from Turkey: https://evrenozmen.com.tr/remote-work-turkey-tax-guide
- Independent contractor in Turkey: https://evrenozmen.com.tr/independent-contractor-turkey-foreign-company-tax
- 100% service export deduction: https://evrenozmen.com.tr/turkey-100-percent-service-export-tax-deduction
About the author
- Evren Özmen is an Istanbul-based CPA / SMMM specializing in tax and accounting for remote workers, freelancers and professionals earning income from foreign clients. His practice has supported more than 1,000 remote-working taxpayers. Core topics include employee versus contractor classification, foreign-client invoicing, VAT exemption for exported services, service export deductions, sole proprietorship and limited company compliance. General information only; case-specific review is required before applying any tax position.
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