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Where Taxpayers and Advisers Meet

Consultancy services to Turkey

pbrown83
Posts:2
Joined:Fri Feb 28, 2014 4:04 pm
Consultancy services to Turkey

Postby pbrown83 » Fri Feb 28, 2014 4:13 pm

Hi,

We're a UK software company and we have started supplying consultancy services to Turkey. This includes some on-site work in Turkey. One of our staff members is a Turkish national, employed in the UK for several years prior and tax-resident here, who volunteered to travel back to perform the work. Our client in Turkey is now claiming (without sending us specifics) that there are tax implications for them because our consultant is a Turkish national and working in Turkey.

I have tried searching various websites, including the Turkish government and tax ones, but could not find anything about this. With a previous company I have encountered something slightly similar when we sent an employee to Norway on a regular basis - where we had to report the number of days worked in Norway and the revenue earned - but this was a tax liability on us, not our clients, and had nothing to do with nationality.

Anyone have any knowledge in this area?

Many thanks

Paul

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Consultancy services to Turkey

Postby bd6759 » Fri Feb 28, 2014 6:14 pm

I don't know much about Turkey specifically, but you'll find an outline of their system here:

http://www.gib.gov.tr/index.php?id=469

And a copy of the double taxation treaty here

http://www.hmrc.gov.uk/taxtreaties/in-f ... ey-dtc.pdf (article 15 is pertinent)

Unless he is also a resident of Turkey, it would seem that he will only be liable to tax there if he stays there for 183 days.


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