Turkey Double Tax Agreements

Under these double taxation conventions, income and capital are exempt from taxation if the company pays the same taxes in the contracting country. If the provisions of the double taxation treaties are not complied with, the company may demand a refund of the taxes paid. This is only possible after it has been demonstrated that the taxes have already been paid in the contracting country. Under most Turkish double taxation conventions, income from immovable property is taxed in one of the countries that are signatories to such an agreement in the country where the property is located. In Turkey, income from forestry or other agricultural activities is taxed. Turkish double taxation conventions cover the following aspects: one of the most comprehensive articles of Turkish double taxation conventions concerns the general definitions applicable to individuals, enterprises, the Contracting State and territories of Turkey where the conventions apply. According to these definitions, persons of Turkish nationality and persons of a Contracting State have the right to engage in various activities, including employment and taxation provided for in the double taxation convention concluded between Turkey and another country. The conventions signed for the avoidance of double taxation are intended to regulate the income of an enterprise registered in a Contracting State operating in Turkey. As a general rule, all agreements signed on this basis relate to the taxation of income for which income can be represented by different types of income taxes applicable to enterprises under local law. It is important to know that States Parties will endeavour to apply income tax to similar taxes that are available in both countries. Social security agreements have been concluded with the following countries: it is important to note that all Turkish double taxation conventions provide for articles relating to similar taxes falling within the scope of the conventions. Foreign companies can operate in Turkey through branches and subsidiaries that can be considered permanent establishments under double taxation treaties.

All Turkish double taxation treaties provide for permanent establishments to be operated for a given period of time (in most cases no less than six months). There are two main ways in which Turkey plans to avoid double taxation. The first refers to a deduction offered to a Turkish national or company if a similar tax has been paid in the other contracting country of the agreement. . . .