Turkey has signed a double taxation agreement with the Republic of China
in 1996. The Turkey - China double tax treaty
was concluded as a mutual agreement for the avoidance of double taxation
and the deterrence of fiscal evasion. Overseas executives who want to open a company in Turkey
can benefit from tax deductions if their company is a resident of the state that Turkey has a double tax treaty with.
Taxes that are covered by the Turkey - China double tax agreement
The double taxation agreement between Turkey and China covers several taxes and it applies to businessmen that operate in both states. The income tax applies to the total income and capital of companies.
The double taxation treaty applies on taxes:
• for companies that function in Turkey: the income tax, the corporate tax, the levy imposed on the income tax and the corporate tax;
• for companies that function in China: the individual income tax, the income tax for ventures with foreign investment and foreign ventures, the local income tax.
This double taxation agreement between Turkey and China applies to any similar taxes which are imposed after the date of the signature of the agreement in addition to the existing taxes referred to in the treaty. The double tax treaty between Turkey and China is exercised on the entire territory of both countries, including territorial waters.
Main provisions of the Turkey - Canada Treaty
The permanent establishment is the fixed place of business through which the field of an enterprise is carried on. If you are interested in company formation in Turkey
, you must understand the following:
• a permanent establishment includes: an office, a place of management, a branch, a workshop, a factory, a mine, an oil or gas well, a quarry, etc., a construction, a building site, assembly, installation project or supervisory activities that continue for more than 12 months;
• dividends can be subjected to tax to the other contracting state (Turkey or China) if they are paid by a company which is a resident of Turkey or China to a resident of the other contracting state with a maximum of 10 percent of the gross amount.
If you need more information regarding company formation in Turkey
or you want to learn more about the Turkey - China tax treaty
, you can contact
our company formation agents.