It was expected that the rate of 35% in the income tax for the waged workers would be cancelled by the constitutional court and then a new constitutional arrangement would be made. 6009 no INCOME TAX LAW AND LAW ON MAKING AMENDMENTS IN DELEGATED DELEGATIONS AND SOME LAWS containing the arrangement was published in the Official Gazette dated 01.08.2010 and numbered 27659. With the law, for the income tax deductions of the waged workers, the beginning figure of 35% bracket was resolved as 76.200 as date of 01.01.2010. Accordingly, in case surplus tax is paid in previous months because of KGVM figures between 50.000 and 76.200, the paid surplus taxes will be set off in the following withholding tax returns. 

Article 3- Article 103 of 193 No Income Tax Law dated 31/12/1960 and numbered 193 was amended as follows;

Temporary Work Permits

Unless stipulated by bilateral or multilateral agreements to which Turkey is party, temporary work permits are issued by the Labor Ministry for the duration of up to one year. In doing so, the ministry considers the overall situation of the labor market, developments in the work environment, conjectural economic changes in employment, the validation period of the foreigner's residence permit and the duration of the work in question.

Following the maximum one year of employment, this type of permit may be extended upon request to three years, with the condition of employment in the same profession and by the same employer; and following the completion of three-year period, it may once again be extended to six years with the condition of employment in the same profession (the employer may be different this time).

COMPANY DETAILS

Employers

Employers must set up a legal entity if they wish to employ staff. This could be either a branch company or a subsidiary company established in Turkey.

Setting up Bank Accounts

Necessary documents for bank account set up:

-   Official  Publication  including  company  registration  details  (Articles  of Association)

-    Tax number

-    Signature Circulars of the authorized executives or shareholders

-    Notary stamped copies of ID's of authorized person

On the Tax Identification Number General Notice with serial no 4 published on the official gazette number 27588 dated May 22, 2010, it was set forth that foreigners who meet certain conditions are entitled to use tax identification numbers. As per article 8 of the Population Service Law 5490; " (1) Foreigners who obtain a minimum six months residence permit for any purpose in Turkey are registered in the foreigners' registry by the General Directorate. The foreigners who are registered in this registry are obliged to inform the registration offices of all their matters regarding census matters. Diplomatic mission members are exempt from this application..."

As per article 69 of the same law;"(1) The legislations regarding the application of this law are prepared within 180 days by the Ministry and is put into effect by the cabinet council.