Payroll for foreign-owned companies in Turkey
Pay your Turkish team correctly, on time, every month. SYSTEMS CPA runs your Turkish payroll end to end — gross-to-net, SGK (social security), income and stamp tax, and every monthly declaration — fully compliant with Turkish labour law, reported to your HQ in English.
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Payroll in Turkey at a glance
| Who it is for | Foreign-owned companies employing staff through a Turkish entity or branch |
| What is included | Monthly payroll, SGK filings, income & stamp tax, payslips, termination documents |
| Key filing | Combined Withholding & Premium Service Declaration (Muhtasar ve Prim Hizmet Beyannamesi) |
| Governing law | Labour Law No. 4857 and Social Security Law No. 5510 |
| Language | English reporting for HQ, Turkish payslips for employees |
| Handled by | Certified Public Accountant (SMMM), TÜRMOB Reg. No. 35675, Istanbul |
How does payroll work in Turkey for foreign companies?
A foreign company with a Turkish entity registers its employees with the Social Security Institution (SGK), then runs monthly payroll: gross salary less income tax, stamp tax and the employee’s SGK share, plus the employer’s SGK contribution on top. Income tax and SGK premiums are reported together each month in the Combined Withholding & Premium Service Declaration and paid to the tax office and SGK by the company. A licensed local firm handles the filings and keeps you compliant.
What is included
- Monthly gross-to-net payroll calculation for every employee
- SGK (social security) registration, monthly declaration and premium calculation
- Income-tax and stamp-tax withholding and the monthly combined declaration
- Payslips for employees and a payroll summary for your HQ
- Onboarding and termination documentation, severance and notice-pay calculations
- Handling of leave, bonuses, benefits and expense reimbursements
- Employer-cost forecasts so your HQ can budget the true cost of a hire
Own entity vs Employer of Record: which do you need?
If you already have a Turkish entity, you run payroll through it — that is what this service covers. If you want to employ someone in Turkey without setting up a company, an Employer of Record (EoR) can hire on your behalf. An EoR is faster to start but costs more per head and gives you less control; your own entity is better once you have more than a couple of employees or want a real local presence. We can advise which route fits, and if you start with an EoR and later open an entity, we handle the transition and the ongoing payroll.
What foreign employers ask
What does an employee really cost in Turkey? More than the gross salary: the employer adds its SGK contribution on top, so the total cost to the company is meaningfully above gross. We give you the fully loaded figure before you hire.
What happens when I terminate someone? Turkish labour law provides for notice periods and, in many cases, severance pay based on length of service. We calculate both and prepare the documentation so the exit is clean.
Worked example: the underbudgeted hire
The situation. A foreign startup agreed a gross salary with a Turkish engineer, assuming that was the cost.
The obvious answer. “Budget the gross, add a bit.”
Why it failed. The employer’s SGK contribution and other on-costs sit on top of gross, so the true monthly cost was materially higher — and a termination later would add severance.
What we did. We gave them a fully loaded employer-cost model before the offer, set up SGK registration correctly, and ran monthly payroll and declarations — so there were no surprises on cost or compliance.
Scope payroll around your Turkish team
For an initial quote, describe your Turkish entity or branch, approximate headcount, salary and benefit structure, and the payroll summary your headquarters needs. Indicate whether you are hiring your first employees or moving from another payroll provider.
The initial discussion can use aggregate information. Your service scope can cover monthly payroll, SGK and tax declarations, employee payslips and English reporting to headquarters.
Discuss payroll for your Turkish entity → · Explore reporting to headquarters
One fixed fee. Agreed in writing. No surprises.
- A single fixed monthly fee for the scope we agree. No hourly billing for routine work.
- Priced on what actually drives the work: invoice and transaction volume, headcount, VAT and e-invoice profile, and the reporting your head office needs.
- A written proposal lists every deliverable line by line. One-off work (VAT refunds, audit support, transfer pricing files) is quoted upfront, before it starts.
- Senior CPA review on every file. You are buying certainty, not data entry.
What does payroll cost?
Payroll is usually priced per employee per month, with the fee depending on headcount, complexity (benefits, bonuses, multiple entities) and whether you also need HR-admin support. We quote after a short call. See what our services cost →
Comparing payroll providers? See Best payroll providers in Turkey for foreign companies (2026) — local CPA payroll vs Employer of Record (Deel, Remote, G-P) vs global payroll.
Related services
Accounting & bookkeeping → · Management reporting → · Tax compliance & advisory →
Verified local partner
Work is performed by Osman Evren Özmen, Certified Public Accountant (SMMM), registered with TÜRMOB — Reg. No. 35675, Istanbul. SYSTEMS CPA is the international-facing practice of independent CPA Evren Özmen (SMMM).
info@ozmconsultancy.com · +90 216 352 29 61 · WhatsApp +90 506 682 96 55
Run Turkish payroll without the risk
Request a scoped proposal → WhatsApp us →
“They are definitely the best accountant in Turkey for international business owners. They handle everything.”
“Finding a trustworthy, English-speaking CPA in Istanbul felt overwhelming at first — until I met Evren and his team.”
“Working with Evren has been the best decision for my business in Turkey.”
Discuss your requirements in Turkey
Talk to our advisory team about accounting, tax and compliance for foreign-owned companies. We reply in English, usually within one business day.