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Turkey signed Prevention of Double Taxation Treaty with Germany
A new Treaty of Prevention of Double Taxation Treaty between The Republic of Turkey and Federal Republic of Germany has been executed. 19.09.2011
According to the statement made by the Primeministry Income Administration, dated 19.09.2011 an updated Prevention of Double Taxation Treaty between The Republic of Turkey and Federal Republic of Germany (the "Treaty") has been executed to be retrospectively effective as of 01.01.2011 subject to being approved by the parliaments of both countries. The previous treaty between the two countries was annulled to be effective as of 01.01.2011 therefore the new Treaty shall be in force as of the same date retrospectively.
The new Treaty provides an "information sharing" principle to enable an effective cooperation between the tax administration of Turkey and Germany in order to prevent tax evasion and also provides a charming environment for investors from both countries by limiting withholding tax applied to dividend distributions from one country to another at 5% to (for shareholding more than 25% of the capital) 15 % (for shareholding less than).
With the execution of Treaty between The Republic of Turkey and Federal Republic of Germany, the number of countries that signed Prevention of Double Taxation Treaty with The Republic of Turkey reaches 82, 74 of which are in effect.