Workforce Payments Guide Turkey

Last updated: Dec 18, 2023

Currency
Turkish Lira (TRY)
Payroll Frequency
Monthly
Capital
Ankara
Fiscal Year
1 January - 31 December
Employer Taxes
22.5%
Employee Costs
15%
Central Bank
Central Bank of the Republic of Türkiye (CBRT
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Corporate Tax Annually Within three months (four months for the consolidated tax return) from the end of the fiscal year Online, Bank Transfer
Individual Income Tax Annually From 1 May to 31 May of the year following the tax year Online, Bank Transfer
Social Security Contribution Monthly with the payroll payment Online, Bank Transfer

Payments Coverage

Papaya Global fully support payments in Turkey

Contractor Payments

Papaya Global supports payments to contractors in Turkey. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency

Monthly

IBAN

IBAN Example Turkey

TR020006254343773379952226

IBAN in print

TR02 0006 2543 4377 3379 9522 26

Country Code TR
Digit Code 02
Bank code 00062
National check digit 5
Account Number 4343773379952226

KYC

In Turkey, the Know Your Client (KYC) process involves several steps to ensure compliance with Anti-Money Laundering (AML) and KYC rules. The process starts with identity verification services. This can be done traditionally in a face-to-face process where an individual presents their identity document (ID, passport or equivalent) at an office. A photocopy of the document is made, a form is filled out, and checks are made to verify the photograph corresponds to the person delivering the document.

The process may also involve a digital identity solution that works in under 10 seconds, which includes AI Document Scanning, isolating the document from the image and evaluating the quality, detecting document tampering or forgery, validating hologram print and extracting data via OCR. For the National ID Card and Passport, there is also a step to verify data from the NFC chip on the identity card.

The process also involves suspicious transaction reporting, employee training, and implementation of control and risk management systems. Specific measures include customer identification, provision of information and documents, and suspicious transaction reporting.

Independent attorneys have been added to the list of “obligated parties”, meaning that they are now required to conduct KYC checks for certain transactions, including the sale and purchase of real estate, establishment and cancellation of limited rights in rem, company-related transactions, and management of bank accounts and assets.

Independent attorneys are also required to confirm their clients’ identities under certain conditions, such as for permanent business relationships, when suspicious transaction reporting is required, or if there’s a suspicion about the accuracy or sufficiency of previously obtained customer information. There are also certain monetary thresholds for requiring KYC checks.

Crypto asset service providers (CASPs) are required to identify users or third parties based on certain criteria such as the transaction value, the type of business relationship, and the accuracy or adequacy of the personal information. CASPs must also collect specific information and documents and verify the identity of the person by asking for identity document(s) and/or passport.

All parties involved in the KYC process are required to retain all documents, books, records, and identification documents in all formats for eight years from the date of issue, the last record date, or the last transaction date. The retention period for customer identification documents starts from the account closure date. Non-compliance may lead to administrative fines.

Banking Regulations

Currency Transfer Restrictions: Customs Authorities must inform the Central Bank on a monthly basis about cash outflows of $50,000 USD or more (or equivalent value in Turkish Lira). Transactions regarding capital outflow must be notified to the Ministry of Economy as well as to the Treasury Undersecretaries.

Regulatory Authorities: Turkish banks (including development and investment banks) and branches of foreign banks in Turkey are primarily governed by two regulatory authorities in Turkey, the Banking Regulation and Supervision Agency (BRSA) and the Central Bank.

Bank Account Opening

To open a company bank account in Turkey, the following requirements are needed:

  1. Articles of Association entries or extract from the Trade Register
  2. Document confirming the company’s activities
  3. Information on each shareholder, founder, director, and other company members
  4. Confirmation of the signature put by the director or directors
  5. Director’s foreign passport data and contact details
  6. An extract on the foreign company’s activities obtained from the tax service
  7. If a joint-stock company, limited liability company or closed joint-stock company conducts licensing activities, a license with translation into Turkish will be required.
  8. The number of founders needs to be at least 1 individual/legal entity and no more than 50.
  9. The company director can be either a founder or an employee, one or more persons.
  10. The share capital needs to be at least 10,000 Turkish Liras.
  11. After registration of the limited company, it is necessary to pay ¼ of the share capital and to deposit the remaining part on the account within the next 2 years.

The process of opening a company bank account in Turkey typically takes between 5 to 15 days.

International Banks

Major foreign banks operating in Turkey are:

  • Garanti BBVA, part owned by the Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA)
  • AKBank, which has a strategic partnership with Citigroup
  • DenizBank, owned by the Emirati group “Emirates NBD”
  • HSBC Bank
  • ALTERNATIFBANK A.Ş.
  • ARAP TÜRK BANKASI A.Ş.
  • BANK MELLAT
  • BANK OF AMERICA YATIRIM BANK A.Ş.
  • BANK OF CHINA TURKEY A.Ş.
  • BANKPOZİTİF KREDİ VE KALKINMA BANKASI A.Ş.
  • BURGAN BANK A.Ş.
  • CITIBANK A.Ş.
  • DEUTSCHE BANK A.Ş.
  • HABİB BANK LİMİTED
  • ICBC TURKEY BANK A.Ş.
  • ING BANK A.Ş.
  • INTESA SANPAOLO S.P.A.
  • JP MORGAN CHASE BANK NATIONAL ASSOCIATION
  • MUFG BANK TURKEY A.Ş.
  • ODEA BANK A.Ş.
  • PASHA YATIRIM BANKASI A.Ş.
  • QNB FİNANSBANK A.Ş.
  • RABOBANK A.Ş.
  • SOCIETE GENERALE S.A.

 

Major Local Banks

The major local banks operating in Turkey include ADABANK A.Ş., AKBANK T.A.Ş., AKTİF YATIRIM BANKASI A.Ş., ANADOLUBANK A.Ş., D YATIRIM BANKASI A.Ş., FİBABANKA A.Ş., GOLDEN GLOBAL YATIRIM BANKASI A.Ş., GSD YATIRIM BANKASI A.Ş., İLLER BANKASI A.Ş., İSTANBUL TAKAS VE SAKLAMA BANKASI A.Ş., NUROL YATIRIM BANKASI A.Ş., ŞEKERBANK T.A.Ş.

Payment Tools

The B2C payment tools available in Turkey include:

  1. Credit and Debit Cards, with Visa, Mastercard, and Troy being the preferred brands.
  2. Cash
  3. Bank Transfers
  4. Digital Wallets, such as BKM Express, Paycell, GPay, Mobilexpress, Papara.
  5. National QR codes
  6. Mobile banking apps
  7. Instant bank transfer
  8. Vouchers
  9. Mobile solutions.

Cryptocurrency

In Turkey, it is not possible to pay employees with cryptocurrencies. This is due to the Regulation on the Disuse of Crypto Assets in Payments published in the Official Gazette on April 16, 2021, and effective from April 30, 2021.

The regulation prohibits the use of cryptocurrencies as a means of payment and also bars services related to crypto buying and selling by e-money institutions. Furthermore, banks, payment institutions, and electronic money institutions are not permitted to act as intermediaries for platforms offering trading, custody, transfer, or issuance services related to crypto assets.

Despite these restrictions, the purchase, sale, transfer, or custody of cryptocurrencies is not prohibited, and platforms providing these services can operate within the law. However, all crypto asset service providers are subject to regulations stipulated under the Anti-Money Laundering Regulation and other relevant legislation, which includes conducting know-your-customer procedures, notifying suspicious transactions, periodic reporting, and retention and submission of information to the Financial Crimes Investigation Board of Turkey.

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