Contracts signed to avoid double taxation are intended to regulate the income of a company registered in a contracting state operating in Turkey. As a general rule, all agreements signed on this basis deal with income taxation, in which income can be represented by different types of income taxes that apply to capital companies in accordance with local law. It is important to know that States Parties will endeavour to apply income tax to similar taxes available in both countries. Most Turkish double taxation conventions cover the following taxes with regard to the Turkish tax system: when it comes to avoiding double taxation in the contracting states, they will choose the solution on the basis of their tax and accounting rules. We remind investors that, in certain situations, any Turkish double taxation agreement is subject to special provisions. Draft agreements are still pending and are awaiting ratification by the Turkish government. Our corporate registrars in Turkey can provide you with detailed information about existing contracts and those included in the tax contract network. Social security agreements have been concluded with the following countries: If you have questions about the provisions of a specific double taxation convention, our Turkish lawyers can help you. Under these definitions, persons of Turkish nationality and persons of a contracting state have the right to carry out various activities, including employment, and to benefit from the imposition under the double taxation agreement between Turkey and another country.
The main reason why countries, including Turkey, sign double taxation conventions is that these documents generally govern how taxes collected in two countries are imposed on individuals and businesses doing business in the states that sign the convention. The double taxation provisions of the Turkish conventions are developed in accordance with the national tax laws of other countries, which is why each tax treaty covers a different tax rate. Under Turkish law, a resident taxpayer is considered a person residing in a country for at least 183 days, while in the case of businesses, a tax residence is established in the country where the company has its statutory headquarters. However, under Turkey`s double taxation agreements, individuals and businesses are subject to the following rules: below, our training partners in Turkey provide general information on the country`s double taxation conventions. We have also tabled a team of accounting specialists to help foreign investors help companies in Turkey understand their benefits with respect to the double taxation agreements signed by Turkey and its countries of origin.