The other way to avoid double taxation in Turkey is to grant a tax exemption to the tax paid in other contracting states. 2. Notwithstanding Article 4, paragraph 1 of this Convention, any person who is a member of the diplomatic or consular representation or consular representation of a contracting state or a third country that is based in the other contracting State and is imposed in that other state only if it derives income from its resources, including from an active source. , is not considered a resident of that other state. If you have questions about Turkey`s double taxation conventions, our lawyers can answer them. Under these contracts, the profits of a company in Turkey are tax-exempt, as they are taxed in the country of residence. The settlement is no longer available when the company operates in Turkey through a stable establishment that refers to a stable place of activity where the company operates. In order to reach an agreement to avoid double taxation and to prevent tax evasion on income and capital income, personal income taxes continue to be divided between personal income and corporate tax. The most important expense tax in Turkey is VAT, but there are also other taxes, such as the special consumption tax, taxes on bank transactions and insurance transactions and stamp duty. In the property tax category, we can mention real estate, vehicle and inheritance tax.
3. Companies of a contracting state whose capital is held, directly or indirectly, by one or more residents of the other contracting state or who are subject to the agreement may not be subject, in the first country, to a tax or related requirement that is something other or more burdensome than the taxation and related requirements to which other similar enterprises of the first state are or may be subject. 2. For the purposes of paragraph 1 of this article, the term “Turkish tax payable” is considered to be any amount that should have been paid for each year as Turkish tax, but for an exemption or reduction that has been granted for that year or part of it under one of the following provisions of Turkish law: the tax regimes vary from state to state. However, within the framework of the principles of international law, the determination of tax administration and the scope of tax legislation are based on two principles: the principle of territoriality and the principle of personality. Tax agreements and related documents between the Uk and Turkey. Each double taxation agreement is different, although many follow very similar guidelines, although the details are different. Exemption method: the country in which the taxpayer is established transfers any tax power to the country of origin. Many countries, including Turkey, use a version of the exemption from territorial sources for international tax revenues. Under this system, certain domestic taxpayer income from foreign sources is exempt in the country of residence. This creates justice between domestic and foreign investors in the country.
(j) “international traffic” refers to any transport by boat, aircraft or road vehicle operated by a company of a contracting state, unless the vessel, aircraft or road vehicle is operated only between premises located in another contracting state: according to the source principle, a state may tax non-residents on the income they derive from sources within the country , regardless of nationality.