TAX EXEMPTION REGARDING THE WAGES PAID BY EMPLOYERS WITH LIMITED TAX LIABILITY
- In accordance with article 3(2) of Corporate Income Tax law numbered 5520, Corporations have a limited tax liability for income deriving from Turkey if neither their registered office nor their business center is within Turkey. Full liability taxpayer corporations are subject to corporation tax on their worldwide income.
- As per article 23(14) of Income tax law, employees working for limited liability corporations whose registered offices and business centers are not located in Turkey are exempt from income tax if; (this usually applies to the liaison offices)
- The wage is paid out from the earnings and revenues generated abroad.
- The wage is paid out in the form of foreign currency.
- Wage is not evaluated in Turkey.
 Income tax law (Law no. 193) distinguishes limited tax liability and full tax liability. As a general rule, resident taxpayers are subject to full tax liability for their worldwide income. (art.3) Nonresident taxpayers are taxable on their income generated in Turkey. For the purpose of the Income-tax law, resident taxpayer refers to those who have legal residence in Turkey and who stay in Turkey more than six consecutive months within a calendar year. (art.4)
 Law No. 5520, Official Gazette of 21.06.2006, No. 26205.
 Refers to all subjects of Corporate Income Tax law.
 The term evaluated refers to the situations which salary payments are used as expenses against profits taxable in Turkey.