Sending an employee abroad: SGK, tax and permit procedures
When an employer in Türkiye sends an employee abroad: countries with and without a social security agreement, temporary posting, premiums, the income tax exemption, İŞKUR permission and an employer checklist.
Businesses that take on projects abroad or serve clients on site send their employees abroad for short or long periods. In this case three questions must be answered: in which country will the employee be insured, where will the wage be taxed, and which permits are needed for the posting?
Look at the country first
Türkiye has social security agreements with many countries. Whether there is an agreement determines the route to follow.
Countries with an agreement
- The employee can remain insured in Türkiye for the period set in the agreement (usually between one and five years, depending on the country).
- For this, a posting form (certificate of coverage) under the relevant agreement is obtained from SGK and submitted to the institution of the host country. Without the form, the employee may also have to be insured in the host country, which means double premiums.
- An extension of the period depends on the approval of the institutions of both countries.
Countries without an agreement
- For Turkish workers taken by employers in Türkiye to work on jobs they have undertaken in these countries, the provisions on short-term insurance branches (work accident, occupational disease, sickness, maternity) and general health insurance apply.
- Long-term insurance branches (retirement) do not apply; if the employee wishes, these periods can be completed with voluntary insurance: Voluntary insurance
- The workplace abroad is registered separately from the workplace in Türkiye.
Temporary posting versus long-term work
| Temporary posting | Being taken to a workplace abroad | |
|---|---|---|
| Employer | The employer in Türkiye | The workplace abroad of the employer in Türkiye |
| SGK reporting | Continues from the workplace in Türkiye | From the foreign workplace file |
| Duration | Short or medium term | For the duration of the project |
| Typical use | Seminars, installation, training, short-term services | Construction sites, long-term projects |
Taxation of the wage
- An employee resident in Türkiye is, as a rule, taxed in Türkiye on worldwide income. The host country may also tax the wage; in that case the double tax treaty and the employee's length of stay in that country are decisive: DTTs and certificate of residence
- Wages paid to employees working on construction, repair and assembly works and technical services carried out abroad are exempt from income tax, provided the wage is paid out of the income earned from those works abroad.
- Transactions such as seconding staff to group companies abroad do not fall within this exemption.
Permits and documents
- Taking Turkish workers to jobs abroad depends on procedures carried out through İŞKUR and on the contract. Taking workers without permission carries heavy sanctions.
- The host country's work visa and residence permit rules must also be followed.
- If the wage is set in foreign currency, the payroll and exchange differences are tracked separately: Currency converter
Employer checklist
- Is there a social security agreement with the host country?
- If there is, has the posting form been obtained from SGK?
- If there is not, has the workplace abroad been registered?
- Have the İŞKUR procedures been completed?
- Have the taxation of the wage and the exemption conditions been assessed?
- Has a written posting letter or supplementary contract been made with the employee? (duration, pay, allowances, accommodation, return)
- Have the occupational health and safety rules in the host country been determined?
Legal basis: Law No. 5510 arts. 5/g and 10; Income Tax Law No. 193 art. 23; bilateral social security agreements; legislation on the employment of workers abroad.