Siemens IT Solutions and Services has signed a £52m outsourcing deal with the Turkish Ministry of Finance to upgrade its IT infrastructure - the largest ever IT contract in the Turkish public sector.
Siemens will upgrade the existing IT infrastructure of more than 1,000 tax offices and property directorates and connect them via a countrywide IT system.
The administration aims to improve collaboration between the different offices, government institutions and banks in order to better control tax issues.
The system will also lead to improved and faster services for Turkish tax payers, said Siemens.
This contract follows two previous orders from 1998 and 2004, which laid the foundations of the current system.
Siemens will now implement a nationwide web-based application that allows the exchange of relevant tax data between all tax offices as well as between other government organisations and banks.
The system is designed to collect information from several sources and databases to create one central reference system - a data warehouse - in which civil servants can compare, control and consolidate information about tax issues.
Siemens will also install a disaster recovery solution with three data centres, renew application software and hardware, enlarge the existing intranet, enhance security and auditing standards, and improve the information flow to top management.
In addition, Siemens will train more than 18,000 public employees to work efficiently with the new systems. The project is scheduled for completion within two years.
Despite a German company winning Turkey's largest public sector IT contract, the German government is still lukewarm about allowing Turkey to join the European Union on human rights and inward immigration grounds.
The BBC recently signed a £43m deal with Siemens to help complete work on its digital switchover programme.