Posted on April 9, 2021 in
Written by: David B. Honig
Turkish companies owned by foreigners wishing to avoid double taxation of profits can use the terms of contracts signed between Turkey and their country of origin. Turkey has an extensive network of contracts aimed at avoiding the double taxation of foreign companies operating on Turkish territory; Investors seeking more information on the main tax exemptions to which they are entitled can seek the help of our team of lawyers in Turkey. Most Turkish double taxation conventions cover the following taxes when it comes to the Turkish tax system: the treaty enters into force with the last communication that the respective governments have made to each other, through official correspondence, that the formalities required by the Constitution have been carried out in accordance with the provision of Article 28. In this context, it is expected that official notifications between countries will be completed by 2020 and the provisions of the treaty will be implemented from 1 January 2021. 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. Each tax treaty is negotiated individually and each time a country`s legislation evolves, changes are made to those contracts. Therefore, you can ask our Turkish lawyers for complete and up-to-date information if you need up-to-date information on a particular agreement. 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. Tax agreements and related documents between the Uk and Turkey. It is important to note that all Turkish double taxation conventions provide for similar tax articles that fall within the scope of the conventions.
One of the most comprehensive articles of The Turkish Double Taxation Conventions refers to the general definitions that apply to individuals, businesses, the State party and the territories of Turkey where the agreements are applicable.