A private ruling was requested regarding whether the wages paid to employees of a liaison office of a UK-based company in Turkey are exempt from income tax. According to the Income Tax Law, wages paid in foreign currency from foreign income by employers without a business center in Turkey can be exempt from tax. For the exemption to apply, the employer must not earn income in Turkey, and payments must come from foreign earnings. If wages are paid in Turkish Lira, the foreign exchange conversion documents must be attached to the payroll. As long as these conditions are met, determining wages in Turkish Lira does not prevent the exemption from being applied.
Source: Revenue Administration
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