Turkey - Germany Double Tax Treaty

Turkey signed on September 19th, 2011 a double taxation agreement with Germany that came into force with retroactive effect as of 1st of January, 2011 and it came to replace a prior double tax treaty between Turkey and Germany that was installed on July 21st, 2009 and ceased to apply as of 1st of January, 2011.

 

The double taxation agreement between Turkey and Germany came as a legal solution for preventing double taxation and tax evasion, reducing the overall tax burden and enabling a tax efficient transfer of wealth to the next generation.

 

Our company formation consultants in Turkey can help you plan your business projects in a legally compliant and tax efficient manner. 

 

 

Like many other countries, Turkey and Germany exercise a taxation system that is based on the notion of residence. In case a company is registered in Turkey and/or Germany, the worldwide income of that company will be subject to Turkish and/or Germany tax. If that company is not registered in Turkey and/or Germany, but gains income out of these two countries sources, that income will be subject to tax. Without the double taxation agreement, the company in cause might be taxed twice by Turkey and Germany. 

 

In order to resolve such tax conflicts, most countries like Turkey and Germany agree upon double taxation treaties. Our company formation agents in Turkey can provide more information regarding the use of double taxation agreement.

 

 

Desiring to further their common economic relations by removing fiscal obstacles and to strengthen their cooperation in tax matters, Turkey and Germany signed the double tax treaty that covers the following taxes:

 

• in Turkey: the income tax (Gelir Vergisi) and the corporate tax (Kurumlaar Vergisi);

 

• in Germany: the income tax (Einkommensteuer), the corporate tax (Korperschaftsteuer) and the trade tax (Gewerbesteuer).

 

The double taxation agreement between Turkey and Germany also applies to identical or similar taxes that are introduced after the agreement’s date of signature.

 

If you want to receive advice regarding setting up a company in Turkey and find our more details about the Turkey - Germany double tax treaty, please contact our company formation consultants.