Turkey and France signed their first double taxation agreement in 1987. The treaty was enforced by both countries two years later. The agreement covers the following taxes:
Turkey has also included the taxes levied on the funds supporting the defense industry, the solidarity surcharge and the taxes applied to the funds supporting the development of vocational and technical training. The avoidance of double taxation also applies to other similar taxes levied in Turkey and France.
The tax treaty between Turkey and France specifies that the avoidance of double taxation will occur by determining the fiscal residence of the taxpayer. The agreement covers both individuals and companies, which is why tax residency is determined based on where a French or Turkish citizen has a permanent place of residence, respectively a place of management in the case of management. The Turkey-France double taxation treaty also allows companies to establish permanent establishments. A site operated by a French company or a Turkish company in the other state is considered a permanent establishment provided that it carries out activities for more than 6 months in a calendar year.
The Turkey-France double tax treaty provides for the following:
The double tax treaty between Turkey and France also provides for reduced rates for the following:
For complete information about the double tax convention with France, do not hesitate to contact our company formation agents in Turkey.