Turkey - Canada Double Tax Treaty

Updated on Wednesday 08th June 2016

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The double taxation agreement between Turkey and Canada was signed in 2009, in Ottawa. Turkey has an extensive range of treaties on the avoidance of double taxation of foreign companies that operate on Turkish territory.

The Turkey - Canada double tax treaty was signed as an agreement for the avoidance of double taxation and the prevention of fiscal evasion on income and on capital. Foreign business people who want to register a company in Turkey can benefit from varied tax deductions if their company is a tax resident of one of the states that Turkey has a double tax treaty with.

Our company formation agents in Turkey can offer you more details about the countries that signed double taxation agreements with Turkey.

Taxes covered by the Turkey - Canada treaty

The double taxation agreement between Turkey and Canada covers several taxes and it applies to companies that operate in both countries. The income tax refers to the total income, total capital or on elements of income or capital.

The double tax treaty applies on the following:

• for companies that operate in Canada:

- the income tax (stipulated in the Income Tax Act, as imposed by the Government of Canada);

• for companies that operate in Turkey:

- the income tax (Gelir Vergisi);

- the corporation tax (Lurumlar Vergisi);

- the fee established on the income tax and the corporation tax.

The agreement applies to any related taxes which are set in along or in place of the existing taxes. Our company formation consultants in Turkey can offer you more information about the taxes covered in the Turkey – Canada double treaty tax and how they are applied.

Main provisions of the Turkey - Canada treaty

If you are interested in opening a company in Turkey, you must pay attention to:

• a permanent establishment means a permanent place of business through which the business is wholly or partly carried on. That includes:

a place of management, an office, a branch, a workshop, a factory, an oil or gas well, a mine, a quarry or other places of natural resources extraction, a construction, a building site, an assembly or installation project, but only if the project or activities continue for a period of time larger than six months;

• dividends paid by a resident company of Canada or Turkey may be taxed in the other state at a rate of 15 percent or 20 percent.

If you need more details about Turkey - Canada tax treaty or you want thorough information regarding company formation in Turkey, please contact our company formation agents.

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