# Employee vs Contractor in Turkey for Foreign Company Work

**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](https://evrenozmen.com.tr/iletisim).

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## 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