EIN

U.S. Tax Treaties with Turkey: Personal Services Income

U.S. Tax Treaties with Turkey: Personal Services Income

Paying for certain personal services performed in the United States is exempt from US income tax if you are in the United States for a limited period of time, if you are a resident of the countries listed by US and if you meet the other conditions. Turkey is on that list.

If the residents meet the following conditions, the income that residents of Turkey get for performing personal services as independent contractors or self-employed in the United States is excluded from U.S. income tax:

  • Residents in the United States for the purpose of performing the services or activities no longer than 183 days in any 12-month period of time
  • Residents who do not have an available fixed base that can be used regularly in the U.S. to run services
  • **If the residents have a fixed base available to them, income is attributable to that fixed base.

Residents of Turkey who are performing services and receiving income as employees (dependent personal services) in the United States are excluded from the U.S. income tax if the following conditions are fulfilled:

  • Residents in the United States for no longer than 183 days in any 12-month period of time.
  •  The income is paid by or on behalf of an employer who is not a US citizen
  • The income does not originate from a permanent establishment or a fixed base owned by the employer in the United States

These exemptions are not applicable:

  • For a citizen of Turkey who performs services as a member of the regular complement of a ship or an aircraft operated by United States resident in international traffic
  • For the director fees and similar payments received by a resident of Turkey for services provided in the U.S. as a member of the board of directors of company which is a resident of the United States
  • For the residents of Turkey receiving income in the United States as public entertainers such as theater, motion picture, television artists, athletes or musicians in the condition that during the tax year their gross receipts are more than $3,000 for their entertainment activities. The income is taxed as independent or dependent personal services if they visit to United States with a support by a Turkish non-profit organization or the public funds of Turkey, its political subdivisions or local authorities.

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