Here you can access most recent articles on legislative updates regarding Personal Data Protection Law, Social Security Law, Taxation Law, Occupational Health and Safety Law, Code of Obligations, Labor Law, Turkish Commercial Code, Law on Protection of the Value of Turkish Currency, Foreign Exchange Legislation, and Immigration Law in Turkey.
You can access the dates of the most recent international bilateral social security and double taxation treaties made between Turkey and other countries and relevant documents here.
Turkey, among the fastest growing economies, is definitely one of the best places to grow your business. With its booming economy,
geopolitical advantage, remarkable growth opportunities, high-quality infrastructure availability,
hard-working and skilled workforce, the country captivates foreign investors.
The Turkish government has always prioritized systematic reforms to give legal certainty for foreign companies to invest in Turkey. Turkey has been adopting new regulations to meet the political and economic criteria of the EU. Despite the reforms, Turkey has its own country-specific regulations similar to other countries.
As per the Labor Law (amended on the 6th of May 2016 by Article 1 of the Law No. 6715), a temporary labor relation may be established if there is a holding or another workplace that is affiliated with the same group of companies. The service contract can be signed for a period of maximum of four months. This contract may be renewed twice at most, provided that it will not exceed eight months in total. The employer who employs temporary workers shall not employ temporary workers again for the same work unless there is a period of six months in between. Similarly, the authorized private employment agencies can establish a temporary labor relation with the employer within the framework of the same conditions.
Turkey enacted this law by taking the Directive of the European Parliament No. 2008/104/EC as an example. Likewise, the temporary work relation is regulated with "Arbeitnehmerüberlassungsgesetz" in Germany, and "Bundesgesetz über die Arbeitsvermittlung und den Personalverleih - Arbeitsvermittlungsgesetz, AVG" in Switzerland. Hereby, we would like to emphasize once again that, in order for the temporary work relation to achieve the aforementioned goals, it must be regulated by law, and its term and conditions must be clearly set out. The limit of 4 months period is an important restriction to give as an example in this regard.
If you are considering starting a project without creating a legal entity in Turkey to expand your growth, you should consider Turkey’s legal environment and country specifics about co-employment regulations. Read more
Regarding the global definition, EOR is a third-party organization that acts as a business partner. EOR usually has a registered local entity in the target country. Thanks to EOR partnership, the client is able to avoid dealing with the local authorities in terms of compliance requirements.
EOR coordinates all tasks for its employees. It is a legal employer who is fully responsible for staff administration and compliance with the regulations. There is no need to provide office space, equipment, training or sign any agreements with the new employees, it’s all done by EOR. Due to temporary labor relation regulations, EOR services have similar restrictions as PEO. In other words, EOR services cannot be used for periods longer than four months as stated in the law.
As it is seen in the above, for indefinite term employments, it is not possible to consider temporary worker agreement as mentioned in the law both for PEO and EOR services in Turkey.
According to the continuity principle in the Turkish Taxation Law and relevant regulations, when a person provides a service continuously (meaning that the service is provided more than once or twice a year as an "incidental income"), the person has to follow one of the below two options in order not to face tax noncompliance. These are:
For multinational companies, having employees in another country via sponsor company services is a fast and simple springboard for testing their economic activity in a new market before undertaking implementation or development missions. Most of the companies do not need to establish a company thanks to Cott Hybrid Service Solution. It is also used to test the relevance of the market as well as the feasibility and success of a project.
The term "ASO" stands for Administrative Services Organization. Like PEOs, they provide outsourced Human Resource Services such as payroll, full HR, leave management, and management of compensation and benefits. The specific services provided vary by ASO .
An ASO does not sponsor employee benefit programs such as health insurance plans but can help the client company to find the best solutions, as well as handling the day-to-day administration.
Cott Hybrid Service approach is usually used for the practical solution of problems such as those arise in service areas that require different expertise from the organization's core business. In general, foreign companies need an employee who has a definite or indefinite term contract which is beyond this context.
Since PEO agreement is not regulated in the Turkish legislation, for a strategic outsourcing project, employment must be closely related to the long-term business strategy of the client in Turkey. BPO or strategic outsourcing means that the clients can find a sub-contractor for activities that are not related to their own skills or core business. The following business functions can meet the requirements.
In the light of aforementioned structures, parties need to cooperate in order to ensure legal compliance in all matters mentioned above. Also, the following items are quite important for the compliance.
(*) The payroll calculation was created based on Tax and Social Security Deductions for 2021. In addition, payroll calculation depends on many parameters such as the amendments in the cumulative tax base of the employee by months, exchange rates, amendments in legal parameters during the year, marital status, and the number of children.
The calculation to be made with the data here can give an overall idea on an annual basis.
It cannot be used instead of the actual payroll calculation.
Sub-contracting practices are also common in Turkey.
Generally, the sub-employer and the main employer working together in the same workplace and with the same supply chain causes various problems. The sub-employer forms a separate workplace in the workplace of the main employer and receives another social security workplace registration number for its employees.
The crucial point in the subcontractor agreement is that the employee works at the workplace of the main employer.
In addition to the customer's internal workforce, an outsourcing relationship may be built if the customer desires and uses the vendor’s employees for one of the following:
The authority constantly emphasizes that business administration is a social science, and the main functions of organizations are mainly as follows: Marketing, Finance, Production, Accounting, Human Resources.
Thanks to the unprecedented growth of mobile communications, remote work is on the rise. Remote employees can execute their projects and surpass their goals wherever they please. With the significant advantages of the digital communication, it is easier than ever to outsource projects in another county. However, global expansion has its risks. Successful global expansion requires effective planning and diligent insights to understand the financial risks associated with doing business in a new country.
Under the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting), over 135 countries are collaborating with each other to put an end to tax avoidance strategies that exploit gaps and mismatches in tax rules to avoid paying tax.
Permanent establishment (PE) is a tax principle that varies depending on the country; it means that a tax authority deems a business to have a stable and continuous presence in the country and is therefore subject to corporate taxes, withholding taxes, and VAT.
In case a client purchases non-income generating auxiliary and ancillary services, such as preparatory work and back office management, it does not trigger the PE status. Even so, the final authority on status is the local tax authority. The company shall be liable to demonstrate that its activities are auxiliary, and it does not warrant the PE establishment status.
Based on the above-mentioned scenarios (both for PEO and EOR), if a company (Client) is deemed to have PE, it will be subject to all the taxes it would pay for profits generated in the country, according to the local tax obligations. In addition, the company can be levied charges for interest on the taxes, and penalties regarding the period over which the company’s activities took place. The tax authority can consider all parties responsible in terms of unpaid tax duties.
General Directorate of Occupational Health and Safety, Family, Labor, and Social Services Ministry determined the measures to be implemented in the workplaces during the COVID-19 pandemic. Most of the new regulations are permanent. The fundamentals of the new regulations are as follows:
First off, as mentioned above the vendor would enter into a 'co-employment relationship'. For this reason, there shall be shared responsibilities between the vendor and the client besides the responsibilities of the vendor. And the vendor must be in direct communication with each employee as an employer of record. The vendor shall expect to be in cooperation with the client in either case.
Employment contracts with a fixed term are a valuable instrument with respect to labor laws in many countries. Over time, many firms in Turkey have begun using this type of employment contract as a way to circumvent the grant of various legal rights that come with indefinite term contracts. Issues with the application of regulation persist despite the numerous court decisions and attempts to stop the usage of fixed-term contracts to serve purposes other than those that they are intended to serve.
Please read the full article here.
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CottGroup® companies' network ("CottGroup®") includes independent companies with separate legal entities that provide various sections of this website and other websites in the CottGroup® member network; and this Personal Data Protection and Processing Policy applies separately for each CottGroup® member company.
Thank you for visiting our website and reading our privacy and security statement.
Basic Information About Our Approach to Data Security and Privacy
CottGroup®'s network of companies (CottGroup®) has dedicated itself to ensuring the security of your personal data in all of its information systems. For CottGroup®, privacy and security matters form the basis of the relation between us and our customers. CottGroup® understands your particular concern about your confidentiality and security and place utmost importance on that matter.
CottGroup® consists of multiple independent members which provide various sections of the websites in CottGroup®'s network of members. Please click here to see our current member companies. New members to be added to the CottGroup®'s network of members in future will also be viewable by clicking the same link.
Information that you will be disclosing when using this website may also be controlled by any other firm among the members of CottGroup®'s network in order to enable us to secure the control, inspection and security of the said data at the utmost level. Each independent member shall be legally liable for any data controlled and inspected by it.
CottGroup® Privacy Statement is applicable to all data processed by CottGroup®, including Personal Data collected or transmitted via our websites in CottGroup®'s network, our software and self-service applications, mobile applications or social media accounts and other online or off-line channels.
Protection of Personal Data
CottGroup® acts in the capacity of a data controller and data processor in line with the Turkish Personal Data Protection Law (KVKK) no. 6698 and provisions of any other legislation applicable to the protection of personal data. Accordingly, personal data shall be processed only by CottGroup® personnel authorized to implement any privacy and security policy as well as services falling within the scope of duty of CottGroup®'s management office and the personnel named in the privacy and security authorization matrices, and those natural/legal persons authorized by CottGroup® for such purpose by fulfilling the condition of informing the data subjects. For details, please click the Personal Data Protection and Processing Policy.
Subject to communication consents provided by you during your communication with us regarding electronic (e-mail) messages and through any other CottGroup® channel, you will be deemed to have accepted to receive e-mail messages through your contact details, for the promotion of services offered by CottGroup® and its business partners, information on new products and services, announcements on issues regarding legislation, and other matters that may be of interest for you. In this respect, you may contact CottGroup® to request that messages are no longer sent to you through one or more than one communication channel.
Log Data, Cookies and Web Beacons
Cookies are program bits that are usually in the form of text files that may be embedded in laptops, desktop PCs and mobile devices, which collect various data.
Cookies may be used to collect the following data:
Purpose of Using Your Data
We may use your personal data which we record during your visits to our website, via automated or non-automated means, or which you may disclose to us in communication forms, e-mails or via other electronic transactions, primarily for the purpose of satisfying your requests and subsequently for ensuring improvement of the services offered to you. Overall purposes of use of such data may be listed as follows:
Please do not disclose such data that you would not want us to collect for the purposes above. Please remember that unless you provide such data, we will be unable to contact you, and that your certain data may still be collected by means of cookies during your visit to this website.
CottGroup® places utmost importance on the security of your data. CottGroup® places utmost importance on the security of your data. We take measures conforming to sector standards to prevent unauthorized collection and use of your data. Exchange of information on the İnternet is not generally secure. Therefore, we recommend you exercise due care by user when exchanging information through our websites and online systems. If you do not take this care, CottGroup® cannot guarantee you about security of your information and communication on the website or capture them by third parties.
When your information arrives at CottGroup®, it is protected in accordance with our security and privacy standards. Your data are stored for the purposes set out above and only for the durations required by the needs of our business process or as prescribed by law.
We may transfer the personal information we collect about you to other countries different from the country we collect the data, as we use their services of the internet service providers, hosting companies, e-mail providers, domain providers (for example: Microsoft 365). Data protection laws and regulations applied in these countries may differ from the laws applicable in Turkey.
Protection for Children's Online Activities
We support parents willing to supervise and control online activities of their children. In no event do we ask children on purpose to share their personal data. If we come to know that a person whose personal data are collected by us is younger than 13 years old, we may use such data to try to promptly inform his/her parents. This rule shall be applicable for age 16 under the European Union General Data Protection Regulation (GDPR).
Designing New Processes in Line with Privacy Rules
CottGroup® takes the most appropriate technological and organizational measures to ensure confidentiality when developing new systems and applies necessary developments for the processing of personal data in line with their intended purposes (Privacy by design).
CottGroup® website: https://www.cottgroup.com
Online Visitor Clarification Text On The Processing Personal Data
Data Controller: Boss Yönetişim Hizmetleri A.Ş.
Address: Astoria Towers Büyükdere Cad. No: 127 B Kule Kat: 8 34394 Şişli, İstanbul, Türkiye
Boss Yönetişim Hizmetleri A.Ş. ("Company") prepared this Clarification Text as the data controller to inform you, our valuable online visitors, about your personal data that we process in accordance with the Law on the Protection of Personal Data (hereinafter referred to as "KVKK") and the relevant legislation.
1. Your Personal Data Processed and The Scope of The Processing
Personal data is any data that identifies you or makes you identifiable. For example, your name, surname, eye color, phone number or bank account information are considered personal data. On the other hand, processing your personal data refers to all kinds of processes such as obtaining, amending, registering, storing, retaining, deleting, disclosing, and transferring your data. We have provided the following information about the personal data we process:
|Your Processed ID Data||Purposes of Processing
Your ID Data
|Collection Methods of
Your ID Data
|Legal Reasons Behind Our Data Processing Activities|
|Your Processed Contact Data||Purposes of Processing Your Contact Data||Collection Methods of Your Contact Data||Legal Reasons Behind Our Data Processing Activities|
|Your Processed Contact Data||Purposes of Processing Your Contact Data||Collection Methods of Your Contact Data||Legal Reason of Our Data Processing Activities|
Customer Transaction Information
|Your Processed Customer Transaction Information||Purposes of Processing Your Customer Transaction Information||Collection Methods of Your Customer Transaction Information||Legal Reasons Behind Our Data Processing Activities|
Transaction Security Information
|Your Processed Transaction Security Information||Purposes of Processing Your Transaction Security Information||Collection Methods of Your Transaction Security Information||Legal Reasons Behind Our Data Processing Activities|
2. Our Retention Period for Storing Your Personal Data
We store your personal data for a period of time stipulated in the relevant legislation or for the periods of time required by the processing purposes. We will delete, destruct or anonymize your data by ex officio or upon your request, if legal reasons requiring data processing disappear.
3. Your Rights Regarding Your Personal Data
Data subject refers to the natural persons whose personal data are processed. As a data subject, you, our valuable online Visitors, have the following rights regarding your personal data processed under KVKK:
4. Methods To Follow to Exercise Your Rights
You can share your application and requests regarding your personal data with Boss Yönetişim Hizmetleri A.Ş. via Data Subject Application Form,
You, as a data subject, should include your name and surname, your signature if the application is in written form, your Turkish ID Number if you are a Turkish citizen, your nationality and passport number (or if you have an ID number) if you are foreigner, place of residence or business address for notifications, your e-mail address and fax number if you have one, and lastly, the subject of the request in your application with respect to legal requirements regarding the applications to data controllers. In addition, you should add documents and information confirming your identity to your application.
In order for us to operate the process in the most effective way for you, you should clearly and understandably indicate in your request which right you want to use and the details of the transaction you request.
We would like to emphasize that the request should concern the data subject itself. If the application is made on behalf of someone else, the person making the request should rely on a specially documented authorization for the requested transaction (power of attorney). Unauthorized applications will not be evaluated.
5. Evaluation of Your Application
By evaluating your applications, we respond to you as soon as possible and within 30 days of receipt as of the date of your application.