How to Obtain a Tax Residency Certificate?

My Foreign Employer Requires a Residency Certificate. How Do I Get It?

When working remotely for a foreign company, you might be asked to provide a free residency certificate. This document proves that you fulfill your tax obligations in your home country. It is different from a tax certificate.

Why Does My Remote Employer Ask for a Tax Residency Certificate?

Your employer requests this certificate to ensure that they are compliant with tax regulations in their country. It helps document that you are fulfilling your tax responsibilities in your home country, potentially reducing tax deductions by the foreign company.

How to Obtain a Tax Residency Certificate?

Step-by-Step Guide

1. Log in to the Internet Tax Office
   Access the website to start the application process.

2. Navigate to the Tax Residency Certificate Section
   Go to the 'Start Transaction / Tax Transactions / Residency Certificate' section.

3. Application Screen
   The following screen will appear where you need to fill in the details:

   • Income Type: Choose between freelance or commercial income.

   • Country of Income: Select the country from which you will earn income.

   • Income Years: Indicate the years for which you are receiving income.

   • Payer Details: Enter the name of the company paying you.

   • Payment Amount and Currency: Specify the amount and the currency of the payment.

After submitting the form, you will receive a notification. The certificate is not immediately available; it usually takes a few days to process.

Important Considerations

If you earn income as a resident of Turkey, you will likely need to obtain a residency certificate at some point. This guide aims to help you navigate the process.

Note: If you receive money from a foreign company without having a business entity and then request a residency certificate, it might lead to a tax audit.

In a future post, I will discuss what to do if a foreign company asks you to secure a special insurance as a guarantee.

Stay tuned for more insights and practical tips!

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Evren Özmen
CPA Istanbul - Financial Advisor - Özmen Consultancy
ozmconsultancy.com

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