Legal News

2011 Wage Parameters

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2011 Wage Parameters	Minimum wage amount is changed, and so did the upper and lower limits of average daily earning taken as basic to premium.

Family allowance, child allowance and disability benefit amounts are also redefined.

Minimum Wage amount is changed

Based on Labor Law no 4857 and with the decision of Commission of Fixing the Minimum Wages, the new parameters are set as follows:

For workers over the age of 16, the wages will be;

26.55 TL per day and 796.50 TL per month between 01.01.2011 and 30.06.2011; 27.90 TL per day and 837.00TL per month between 01.07.2011 and 31.12.2011

Which Works Can Be Given To The Subcontractor?

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Which Works Can Be Given To The Subcontractor?	The person who takes a work that requires specialization in auxiliary works or in some part of the main work because of technological reasons or as necessity of work related to the product or service production at the work place and assigns his workers employed for that work only to the work he has take  is called as subcontractor.

The work that requires specialization as necessity of the work and establishment is one of the obligatory elements of the product or service production that requires a separate specialization other than the own specialization of the establishment.

The employer has to make a product or service production by means of his own employees and management organization.  However, the main work can be given to the subcontractor only if the following conditions occur together;

Criteria for Work Permit of the Foreigners Started To Be Implemented

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Criteria for Work Permit of the Foreigners Started To Be Implemented	With a view of finalizing transactions for work permit requests of the foreigners in an objective and rapid way, as per the Article 13 of the Regulations on the Implementation of the Act No. 4817 on Work Permit of the Permits, the assessment criteria were determined with the Consent of the Ministry. The assessment criteria started to be implemented as of 2/8/2010 are written below:

The Process Required For Work Permit Applications In Turkey

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The Process Required For Work Permit Applications In Turkey	Documents Required From The Company For Work Permit

-Original signed and countersigned business contract between the employer and the employee

-SSK report referring to the latest month, stating the numbers and names of Turkish and foreign employees working in the company.

-Balance sheet or original income scheme approved by tax office of the company or by chartered accountant

-Original or a copy of Trade Registry Gazette approved by your company, designating the capital and shareholding structure of the company

-Contract between your company and the Company that the foreign employee will work for (If the employee will be employed under a third party)

- Petition addressing to the ministry stating the demand for the work permit of the employees.

Amendment in Income Tax Law

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Amendment in Income Tax Law It was expected that the rate of 35% in the income tax for the waged workers would be cancelled by the constitutional court and then a new constitutional arrangement would be made. 6009 no INCOME TAX LAW AND LAW ON MAKING AMENDMENTS IN DELEGATED DELEGATIONS AND SOME LAWS containing the arrangement was published in the Official Gazette dated 01.08.2010 and numbered 27659. With the law, for the income tax deductions of the waged workers, the beginning figure of 35% bracket was resolved as 76.200 as date of 01.01.2010. Accordingly, in case surplus tax is paid in previous months because of KGVM figures between 50.000 and 76.200, the paid surplus taxes will be set off in the following withholding tax returns. 

Working Foreigners : Types of Work Permits

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Working Foreigners : Types of Work Permits	Temporary Work Permits

Unless stipulated by bilateral or multilateral agreements to which Turkey is party, temporary work permits are issued by the Labor Ministry for the duration of up to one year. In doing so, the ministry considers the overall situation of the labor market, developments in the work environment, conjectural economic changes in employment, the validation period of the foreigner's residence permit and the duration of the work in question.

Following the maximum one year of employment, this type of permit may be extended upon request to three years, with the condition of employment in the same profession and by the same employer; and following the completion of three-year period, it may once again be extended to six years with the condition of employment in the same profession (the employer may be different this time).

Facts for Employers To Set Up A Company In Turkey

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Facts for Employers To Set Up A Company In Turkey	COMPANY DETAILS


Employers must set up a legal entity if they wish to employ staff. This could be either a branch company or a subsidiary company established in Turkey.

Setting up Bank Accounts

Necessary documents for bank account set up:

-   Official  Publication  including  company  registration  details  (Articles  of Association)

-    Tax number

-    Signature Circulars of the authorized executives or shareholders

-    Notary stamped copies of ID's of authorized person

ID Number Assignment For Foreigners And Tax Identification Number

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ID Number Assignment For Foreigners And Tax Identification Number	On the Tax Identification Number General Notice with serial no 4 published on the official gazette number 27588 dated May 22, 2010, it was set forth that foreigners who meet certain conditions are entitled to use tax identification numbers. As per article 8 of the Population Service Law 5490; " (1) Foreigners who obtain a minimum six months residence permit for any purpose in Turkey are registered in the foreigners' registry by the General Directorate. The foreigners who are registered in this registry are obliged to inform the registration offices of all their matters regarding census matters. Diplomatic mission members are exempt from this application..."

As per article 69 of the same law;"(1) The legislations regarding the application of this law are prepared within 180 days by the Ministry and is put into effect by the cabinet council.

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