It should be noted that there are several reasons why international double taxation cannot be completely eliminated by bilateral agreements, such as: desire to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion on income and capital gains: companies must have a registered office in Turkey, whether or not they are resident for tax purposes in Turkey, to benefit from the double taxation treaties signed. In the case of foreign companies, the permanent establishment status applies, in which different tax advantages can be obtained. In the case of self-employed activities which give rise to income obtained in the State party to a double taxation convention, the person is taxed in the State party. However, a person may be taxed in Turkey even if he resides in a Contracting State, if the person stays more than 183 days in a calendar year. If you are considered to be tax-established in two or more countries, it is important to understand possible tax relief through double taxation treaties One of the most comprehensive articles of Turkish double taxation treaties concerns the general definitions applicable to individuals, companies, States Parties and territories of Turkey where the treaties apply. Turkey`s double taxation treaties are the most effective tax minimization solution for foreign companies and individuals operating in this area. Under these agreements, both individuals and companies can benefit from tax deductions and exemptions from income tax, dividends, interest and capital gains. The purpose of this article is to investigate international double taxation under Turkish law. 1.
In the other Contracting State, the national of a Contracting State shall not be subject to any other taxation, to a taxation associated with it or to a requirement which is different or more onerous than the taxation and related requirements to which the nationals of that other State are or may be subject in the same circumstances. The main objective of these conventions is not only to distribute tax legislation among the Contracting States, but also to guarantee the equality of taxable persons and to attract foreign investors. 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 other way to avoid double taxation in Turkey is to grant a tax exemption to tax paid in another Contracting State. 4. The competent authorities of the Contracting States may communicate directly with each other with a view to reaching an agreement within the meaning of the preceding paragraphs. In addition to the above-mentioned agreements, Turkey is a signatory to the European Agreement on Social Security. (d) if he is a national of both States Parties or of one of the two States Parties, the competent authorities of the States Parties shall decide by mutual agreement on the matter. In order to determine whether this is possible and how a double taxation treaty can be applied, it is essential to determine the position of the person`s “contractual residence”, given that this is the country of contractual residence which, as a general rule, assumes the taxing rights.
. . .