Merhaba! I am Shun Yoshida from Tokyo Consulting Firm Turkey Office.
I hope you all are safe and stay healthy.
This week I would like to share some more points of attention regarding “Project-based Business Development in Turkey” following to the previous blog as follows.
目次
⑵ Type of Project (Relationship with the Government)
There are also some other points to consider in addition to the form of business base when it comes to the project-based business development in Turkey. One of them is what type of project will be carried out in Turkey. In Turkey, if the project is the one requested by the Turkish government which is so-called ‘Government Tender’, there might be a possibility that foreign expatriates engaging in the project will be exempt from the obligations both for obtaining a work permit and employment of a certain number of Turkish employees (*1/5 Rule). In addition, it is not necessary for the company to receive an order for the project directly from the Turkish government to benefit from the mentioned preferential measures. It is expectable that those might be applied even if the project is the one indirectly outsourced by another company as long as it is Government Tender. Meanwhile, if the project is a private project unrelated to the Turkish government whatsoever, normal regulation shall be applied as always. Hence, a company needs to comply with the acquisition of work permit and employment of Turkish citizens.
*1/5 Rule: A company needs to employ at least 5 Turkish employees for each application for foreign employee’s work permit.
⑶ Dispatch of Business Traveler
At the implementation of the project, there might be cases foreign expatriates and business travelers will be dispatched from the parent company or overseas bases in other countries. In case an expatriate is dispatched after the company sets up a PE in Turkey, the one will be recognized as a resident since he/she will stay in Turkey for business purpose. As a consequence, one will need to be registered to social insurance and declaring of personal income tax in addition to obtaining a work permit as same as the normal business scheme. On the other hand, there is no obligation either to obtain a work permit nor register to social insurance for a certain period of time for business travelers who stay in Turkey on a short-term business trip basis. As an example, when a company sends a Japanese business traveler to Turkey, a working visa is exempted for one’s short-term stay up to 90 days in total out of past 180 days. On the flip side, however, it is always necessary to obtain any kind of visa beforehand regardless of the length of stay depending on the nationality of the business traveler, so that companies should take extra caution when dispatching business traveler with foreign nationality.
That is all for this week.
We offer free meeting (online/offline) regarding establishment and business development in Turkey.
If you have any question other than the above topic, please do not hesitate to contact us.
Thank you very much for your time to read until the end.
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『久野語録』として日めくりカレンダーにまとめ、内容を毎日解説していきます。
チャンネル名にある通り、「毎日が有給休暇」になるような生き方のツボとコツを発信しておりますので
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東京コンサルティングファーム・トルコ拠点
吉田瞬
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