TAX NEWS NO: 2012/3
August 1, 2012
The Turkey - Germany Income Tax Treaty Has Entered Into Force
The Turkey - Germany income tax treaty signed in Berlin on September 19, 2011, has entered into force on August 1, and shall apply from January 1, 2011.
Under the treaty, dividends will be taxable at a rate not to exceed 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 25 percent of the capital of the payer company. In other cases, a 15 percent rate will apply. Interest and royalties will be taxed at a maximum rate of 10 percent.
If you would like to review the tax treaty, you can click here (in Turkish, English).
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