Treaties may cap withholding rates on payments such as dividends, interest and royalties. A certificate of residence from the other country is generally needed to benefit from treaty provisions.
Source: İlgili ikili anlaşmalar, OECD Model Vergi Anlaşması
Related terms
Full and limited tax liabilityFully liable taxpayers are taxed on their worldwide income, while those with limited liability are taxed only on income earned in Turkey.Withholding taxPersons and entities making certain payments withholding tax at the time of payment and paying it to the tax office on behalf of the recipient.Transfer pricingThe pricing of goods, services and financing transactions between related persons; tax legislation requires these prices to be at arm's length.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Advance tax rulingA written explanation issued by the tax administration upon a taxpayer's written request about its own tax position or matters it considers unclear.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.
Last updated: October 31, 2026 · This definition is for general information only.