List of published territories Albania$$$Algeria$$$Angola$$$Antigua and Barbuda$$$Argentina$$$Armenia$$$Australia$$$Austria$$$Azerbaijan$$$Bahrain$$$Barbados$$$Belarus$$$Belgium$$$Bermuda$$$Bolivia$$$Bosnia and Herzegovina$$$Botswana$$$Brazil$$$Bulgaria$$$Cabo Verde$$$Cambodia$$$Cameroon, Republic of$$$Canada$$$Cayman Islands$$$Chad$$$Chile$$$China, People's Republic of$$$Colombia$$$Congo, Democratic Republic of the$$$Congo, Republic of$$$Costa Rica$$$Croatia$$$Cyprus$$$Czech Republic$$$Denmark$$$Dominica , Commonwealth of$$$Dominican Republic$$$Ecuador$$$Egypt$$$El Salvador$$$Equatorial Guinea$$$Estonia$$$Fiji$$$Finland$$$France$$$Gabon$$$Georgia$$$Germany$$$Ghana$$$Gibraltar$$$Greece$$$Greenland$$$Guatemala$$$Guernsey, Channel Islands$$$Guyana$$$Honduras$$$Hong Kong$$$Hungary$$$Iceland$$$India$$$Indonesia$$$Iraq$$$Ireland$$$Isle of Man$$$Israel$$$Italy$$$Ivory Coast (Côte d'Ivoire)$$$Jamaica$$$Japan$$$Jersey, Channel Islands$$$Jordan$$$Kazakhstan$$$Kenya$$$Korea, Republic of$$$Kosovo$$$Kuwait$$$Kyrgyzstan$$$Lao PDR$$$Latvia$$$Lebanon$$$Libya$$$Liechtenstein$$$Lithuania$$$Luxembourg$$$Macau$$$Macedonia$$$Madagascar$$$Malawi$$$Malaysia$$$Malta$$$Mauritius$$$Mexico$$$Moldova$$$Mongolia$$$Montenegro$$$Morocco$$$Mozambique$$$Myanmar$$$Namibia, Republic of$$$Netherlands$$$New Zealand$$$Nicaragua$$$Nigeria$$$Norway$$$Oman$$$Pakistan$$$Panama$$$Papua New Guinea$$$Paraguay$$$Peru$$$Philippines$$$Poland$$$Portugal$$$Puerto Rico$$$Qatar$$$Romania$$$Russian Federation$$$Rwanda$$$Saint Kitts and Nevis$$$Saint Lucia$$$Saudi Arabia$$$Senegal$$$Serbia$$$Singapore$$$Slovak Republic$$$Slovenia$$$South Africa$$$Spain$$$Sri Lanka$$$Swaziland$$$Sweden$$$Switzerland$$$Taiwan$$$Tajikistan$$$Tanzania$$$Thailand$$$Timor-Leste$$$Trinidad and Tobago$$$Tunisia$$$Turkey$$$Turkmenistan$$$Uganda$$$Ukraine$$$United Arab Emirates$$$United Kingdom$$$United States$$$Uruguay$$$Uzbekistan, Republic of$$$Venezuela$$$Vietnam$$$Zambia$$$Zimbabwe JDCN-89JRLJ$$$JDCN-9L9ER3$$$JDCN-89HREB$$$JDCN-89HRFR$$$JDCN-89HRGN$$$JDCN-89HRHB$$$JDCN-89HRJM$$$JDCN-89HRKA$$$JDCN-89HRKX$$$JDCN-89HRLL$$$JDCN-89HRM9$$$JDCN-89HRMW$$$JDCN-89HRNK$$$JDCN-89HRP8$$$JDCN-89HRPV$$$JDCN-89HRQJ$$$JDCN-89HRR7$$$JDCN-89HRRU$$$JDCN-89HRSH$$$JDCN-89HRV5$$$JDCN-89HRT6$$$JDCN-89HRTT$$$JDCN-89HRUG$$$JDCN-89HRVS$$$JDCN-89HRWF$$$JDCN-89HRYE$$$JDCN-89HRZ3$$$JDCN-89HRZQ$$$JDCN-89HS2D$$$JDCN-89HS32$$$JDCN-89HS3P$$$JDCN-89PKJ7$$$JDCN-89HS5N$$$JDCN-89HS6B$$$JDCN-89HS6Y$$$JDCN-8V8FHF$$$JDCN-89HS7M$$$JDCN-89HS8A$$$JDCN-89HS8X$$$JDCN-89HS9L$$$JDCN-89HSA9$$$JDCN-89HSAW$$$JDCN-89HSBK$$$JDCN-89HSC8$$$JDCN-89HSCV$$$JDCN-89HSDJ$$$JDCN-89HSE7$$$JDCN-89HSEU$$$JDCN-89HSFH$$$JDCN-89HSG6$$$JDCN-89HSGT$$$JDCN-9LFTHK$$$JDCN-89HSHG$$$JDCN-89HRX4$$$JDCN-8UENHH$$$JDCN-89HSJ5$$$JDCN-89HSJS$$$JDCN-89HSKF$$$JDCN-8HLNAZ$$$JDCN-89HSL4$$$JDCN-89HSLR$$$JDCN-89HSME$$$JDCN-89HSN3$$$JDCN-89HSNQ$$$JDCN-89HSPD$$$JDCN-89HSQ2$$$JDCN-89HSQP$$$JDCN-89HSRC$$$JDCN-89HSRZ$$$JDCN-89HRXR$$$JDCN-89HSSN$$$JDCN-89HSTB$$$JDCN-89HSTY$$$JDCN-89HSUM$$$JDCN-AN9ENE$$$JDCN-89HSVA$$$JDCN-89HSVX$$$JDCN-8EGQEM$$$JDCN-89HSWL$$$JDCN-89HSX9$$$JDCN-89HSXW$$$JDCN-89HSYK$$$JDCN-89HSZ8$$$JDCN-89HSZV$$$JDCN-89HT2J$$$JDCN-89HT38$$$JDCN-89HT3V$$$JDCN-89HT4J$$$UKWE-8CEb2F$$$JDCN-89HT5U$$$JDCN-89HT6H$$$JDCN-89HT77$$$JDCN-89HT7U$$$JDCN-89HT8H$$$JDCN-89HT96$$$JDCN-8HLRL5$$$JDCN-89HT9T$$$JDCN-97XLRC$$$JDCN-89HTAG$$$JDCN-89HTB5$$$JDCN-89HTCF$$$JDCN-89HTD4$$$JDCN-89HTDR$$$JDCN-89HTEE$$$JDCN-89HTF3$$$JDCN-89HTFR$$$JDCN-89HTGE$$$JDCN-89HTH3$$$JDCN-89HTHQ$$$JDCN-89HTJD$$$JDCN-89HTK2$$$JDCN-89HTKP$$$JDCN-89HTLC$$$JDCN-89HTLZ$$$JDCN-89HTMN$$$JDCN-89HTNB$$$JDCN-89HTNY$$$JDCN-8UPFL5$$$JDCN-89HTVJ$$$JDCN-89HTW7$$$JDCN-89HTPM$$$JDCN-89HTQA$$$JDCN-89HTQX$$$JDCN-89HTRL$$$JDCN-89HTS9$$$JDCN-89HTSW$$$JDCN-89HTTK$$$UKWE-8CDMS7$$$JDCN-89HTUV$$$JDCN-89HTWU$$$JDCN-89HTXH$$$JDCN-89HTY6$$$JDCN-89HTZG$$$JDCN-89HU25$$$JDCN-89HU2S$$$JDCN-89HU3F$$$JDCN-8VDJC3$$$JDCN-89HU44$$$JDCN-8V8FQH$$$JDCN-89HU4R$$$JDCN-89HU5E$$$JDCN-89HU63$$$JDCN-89HU6Q$$$JDCN-89HU7D$$$JDCN-89HU82$$$JDCN-89HU8P$$$JDCN-89HU9C$$$JDCN-89HU9Z$$$JDCN-89HUAN$$$JDCN-89HUBB$$$JDCN-9LFTHP$$$JDCN-89HUBY Barbuda$$$Herzegovina$$$Cape Verde$$$Republic of Cameroon$$$People's Republic of China$$$Peoples Republic of China$$$Democratic Republic of the Congo$$$DRC$$$Republic of Congo$$$Commonwealth of Dominica$$$Channel Islands$$$Channel Islands$$$South Korea$$$Republic of Korea$$$Laos$$$Republic of Lebanon$$$The Netherlands$$$PNG$$$Russia$$$Nevis$$$St. Kitts and Nevis$$$St Kitts and Nevis$$$St. Lucia$$$St Lucia$$$Slovakia$$$SA$$$Tobago$$$Republic of Turkey$$$UAE$$$Great Britain$$$UK$$$Britain$$$Whales$$$Northern Ireland$$$England$$$US$$$U.S.$$$U.S.A.$$$USA$$$Republic of Uruguay$$$Republic of Uzbekistan$$$Republic of Zambia

Turkey Corporate - Withholding taxes

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There is no WHT on payments to resident corporations by other resident corporations, except for a 3% WHT on progress payments to contractors, both domestic and foreign, within the scope of construction work spanning more than one calendar year.

The local WHT rates are as follows:

Income derived by non-resident individuals or corporations not constituting a PE in Turkey WHT (%)
Rental from immovable assets 20
Leasing of machinery and equipment within the scope of the investment incentive certificates document to taxpayers holding an IIC (within the scope of the conditions regulated under Turkish Financial Leasing Law No. 3226) 1
Royalties (e.g. on patents, copyrights, licence) 20
Professional services 20
Petroleum services 5
Wages & salaries (progressive rates are applied for employees' income taxes) 15 to 35
Interest on loan arrangements:  
Interest payments made to foreign banks and corporations that are authorised in their own jurisdictions and customarily lend not only to related parties but also to third parties 0
Interest payments made in relation to securitisation loans and subordinated loans 1
Other loans 10
Interest on time deposits *** 10 to 18
Reverse-repo income derived from bonds 15
Income derived by resident eligible entities * WHT (%)
Capital gains on Treasury bills and domestic government bonds issued after 1 January 2006 0
Interest income on Treasury bills and domestic government bonds issued after 1 January 2006 0
Capital gains from listed equities purchased after 1 January 2006 0
Income derived by other entities and individuals WHT (%)
Capital gains on Treasury bills and domestic government bonds issued after 1 January 2006 10
Interest income on Treasury bills and domestic government bonds issued after 1 January 2006 10
Income derived by non-resident individuals or corporations not constituting a PE in Turkey WHT (%)
Capital gains from listed equities purchased after 1 January 2006 (excluding capital gains from securities investment trust shares) 0
Capital gains from equities of securities investment trusts purchased after 1 January 2006 10
Participation shares of Turkish investment funds WHT (%)
Eligible entities * (both residents and non-residents) 0
Other entities and individuals ** (both residents and non-residents) 10

* See Portfolio investment income in the Tax credits and incentives section.

** Income derived from the redemption of participation certificates that continuously invest at least 51% of their assets in equities that are registered on the ISE are not subject to WHT if they are held for at least one year.

Income derived from participation shares of investment funds that intensively invest in listed shares (equity intensive funds) are subject to 0% WHT.

*** WHT on interest income derived from time deposits depends on the currency (i.e. Turkish lira or foreign currency deposits) and the maturity (see Portfolio investment income in the Tax credits and incentives section).

Please refer to the following tables for local WHT on dividends, interest, and royalties, respectively.

Turkish WHT on dividends

Dividend distributions to individuals and to non-resident persons who are shareholders are subject to WHT at a local rate of 15%. This rate might be reduced for non-resident shareholders in the presence of a tax treaty. Please note that dividend distributions to resident entities and branches of non-resident entities are not subject to WHT.

Recipient Shareholding interest WHT rate (%)
Non-treaty   15
Treaty:    
Albania If greater than or equal to 25% 5
In all other cases 15
Algeria   12
Austria If greater than or equal to 25% 5 (2)
In all other cases 15 (2)
Australia (11) 5/10 (11)
In all other cases 15
Azerbaijan   12
Bahrain If greater than or equal to 25% 10
In all other cases 15
Bangladesh   10
Belarus If greater than or equal to 25% 10
In all other cases 15
Belgium If greater than or equal to 10% 15 (2)
In all other cases 20 (1, 2)
Bosnia Herzegovina If greater than or equal to 25% 5
In all other cases 15
Brazil If greater than or equal to 25% 10
In all other cases 15
Bulgaria If greater than or equal to 25% 10
In all other cases 15
Canada If greater than or equal to 10% 15
In all other cases 20 (1)
China (People's Republic of)   10
Croatia   10
Czech Republic   10
Denmark If greater than or equal to 25% 15
In all other cases 20 (1)
Egypt If greater than or equal to 25% 5
In all other cases 15
Estonia   10
Ethiopia   10
Finland If greater than or equal to 25% 5
In all other cases 15 (1)
France If greater than or equal to 10% 15
In all other cases 20 (1)
Georgia   10
Germany If greater than or equal to 25% 5
In all other cases 15
Greece   15
Hungary If greater than or equal to 25% 10
In all other cases 15
India   15
Indonesia If greater than or equal to 25% 10
In all other cases 15
Iran If greater than or equal to 25% 15
In all other cases 20 (1)
Ireland If greater than or equal to 25% 5/10 (2, 7)
In all other cases 15 (2)
Israel   10
Italy   15
Japan If greater than or equal to 25% 10 (4)
In all other cases 15
Jordan If greater than or equal to 25% 10
In all other cases 15
Kazakhstan   10
Korea, Republic of If greater than or equal to 25% 15
In all other cases 20 (1)
Kosovo If greater than or equal to 25% 5
In all other cases 15
Kuwait   10
Kyrgyzstan   10
Latvia   10
Lebanon If greater than or equal to 15% 10
In all other cases 15
Lithuania   10
Luxembourg If greater than or equal to 25% 10
In all other cases 20 (1)
Macedonia If greater than or equal to 25% 5
In all other cases 10
Malaysia If greater than or equal to 25% 10
In all other cases 15
Malta If greater than or equal to 25% 10
In all other cases 15
Mexico If greater than or equal to 25% 5
In all other cases 15
Moldova If greater than or equal to 25% 10
In all other cases 15
Mongolia   10
Morocco If greater than or equal to 25% 7
In all other cases 10
Netherlands, The If greater than or equal to 25% 15 (2)
In all other cases 20 (1, 2)
New Zealand If greater than or equal to 25% 5 (9)
In all other cases 15
Northern Cyprus, Turkish Republic of If greater than or equal to 25% 15
In all other cases 20 (1)
Norway If greater than or equal to 20% 5
In all other cases 15 (8)
Oman If greater than or equal to 15% 10
In all other cases 15
Pakistan If greater than or equal to 25% 10
In all other cases 15
Philippines If greater than or equal to 25% 10
In all other cases 15
Poland If greater than or equal to 25% 10
In all other cases 15
Portugal If greater than or equal to 25% 5
In all other cases 15
Qatar If greater than or equal to 25% 10
In all other cases 15
Romania   15
Russia   10
Saudi Arabia If greater than or equal to 20% 5 (6)
In all other cases 10
Serbia-Montenegro If greater than or equal to 25% 5
In all other cases 15
Singapore If greater than or equal to 25% 10
In all other cases 15
Slovakia If greater than or equal to 25% 5
In all other cases 10
Slovenia   10
South Africa If greater than or equal to 25% 10
In all other cases 15
Spain If greater than or equal to 25% 5 (5)
In all other cases 15
Sudan   10
Sweden If greater than or equal to 25% 15
In all other cases 20 (1)
Switzerland If greater than or equal to 20% 5
In all other cases 15 (11)
Syria   10
Tajikistan   10
Thailand If greater than or equal to 25% 10
In all other cases 15
Tunisia If greater than or equal to 25% 12
In all other cases 15
Turkmenistan   10
Ukraine If greater than or equal to 25% 10
In all other cases 15
United Arab Emirates If greater than or equal to 25% 10 (3)
In all other cases 12
United Kingdom If greater than or equal to 25% 15
In all other cases 20 (1)
United States If greater than or equal to 10% 15
In all other cases 20 (1)
Uzbekistan   10
Vietnam If greater than or equal to 50% (12) 5
If between 25% and 50% 10
In all other cases 15
Yemen   10

Notes

  1. The local rate is 15% for dividends. Unless a lower rate is stated in the Agreement, the local rate is applied.
  2. As per the provisions of the protocol amending the agreement, the rate may be (partially or wholly) reduced;
    • For the Netherlands: to 10%, as long as, under the provisions of the Netherlands Company Tax Act and to the future amendments thereto, a company that is a resident of the Netherlands is not charged tax with respect to dividends the company receives from a company that is a resident of Turkey.
    • For Belgium: to 10%, as long as, under the provisions of the Belgian laws and of the future amendments thereto, a company that is a resident of Belgium is not charged tax with respect to dividends the company receives from a company that is a resident of Turkey.
    • For Austria: to 5%, if the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends, provided that such dividends are exempt from tax in Austria.
    • For Ireland: to 5%, where the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the voting power of the company paying the dividends. 15% in all other cases.
  3. Subject to 5% of the gross amount of the dividends if the recipient is the government, or a public institution that is wholly owned by the government or its political subdivisions, or local authorities of the United Arab Emirates.
  4. The tax rate shall be 15% where the amount of the Turkish tax imposed on the income of the company paying dividends is less than 40% of such income derived in the accounting period ending immediately before the date when such dividends become payable.
  5. The income should be subject to full corporate taxation in the hands of the Turkish tax-resident subsidiary.
  6. If the beneficial owner of the dividends is a resident of Saudi Arabia, the tax so charged shall not exceed 5% of the gross amount of the dividends provided: (i) the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the Turkish company paying the dividends or (ii) the beneficial owner is a central bank or an entity that is wholly owned by the government.
  7. In case of Turkey, the tax rate shall not exceed 5%, to the extent that they are paid out of profits that have been subject to full rate of CIT in Turkey (i.e. without benefiting from tax exemption).
  8. The rate of the income tax shall not exceed 5% if it is derived by the Government Pension Fund (Statens Pensjonsfond) or by the Government Social Security Fund (Sosyal Guvenlik Fonu), provided that such dividends are exempt from tax in the contracting state where the beneficial owner is a resident.
  9. The treaty-reduced rate of 5% shall apply if such dividends are exempt from tax in the contracting state of which the beneficial owner is a resident.
  10. As per the provisions of the agreement, the rate may be reduced to 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the company paying the dividends, provided that a relief from Swiss tax is granted for such dividends by way of an abatement of the profits tax in proportion corresponding to the ratio between the earnings from participations and the total profits or by way of an equivalent relief.
  11. As per the provisions of the agreement, 5% of the gross amount of dividends that are subject to Turkish Corporate Income Tax at the full rate if the Australian company (other than a partnership) holds at least 25% of the capital of the Turkish company. Regardless of these, if the dividends are taxed in Australia, Turkey could tax the dividends at a rate not exceeding 15%.
  12. The WHT shall be lowered to 5% if the beneficial owner is a company (other than a partnership) that directly holds at least 50% of the capital of the company paying the dividends or has invested more than USD 10 million, or the equivalent in Turkish or Vietnamese currency, in the capital of the company paying the dividends.

Turkish WHT on interest and royalties

Recipient WHT (%)
Interest Royalties
Non-treaty 10 to 18 20
Treaty:    
Albania 10 10
Algeria 10 10
Austria 5/10/15 (1, 14) 10
Australia 10 10
Azerbaijan 10 10
Bahrain 10 10
Bangladesh 10 10
Belarus 10 10
Belgium 15 (1) 10
Bosnia Herzegovina 10 10
Brazil 15 (1) 10/15 (22)
Bulgaria 10 10
Canada 15 (1, 18) 10
China (People's Republic of) 10 10
Croatia 10 10
Czech Republic 10 10
Denmark 15 (1) 10
Egypt 10 10
Estonia 10 5/10 (12)
Ethiopia 10 10
Finland 5/10/15 (23) 10
France 15 (1) 10
Georgia 10 10
Germany 10 (1) 10
Greece 12 (1) 10
Hungary 10 10
India 10/15 (1, 6) 15
Indonesia 10 10
Iran 10 10
Ireland 10/15 (1, 16) 10
Israel 10 10
Italy 15 (1) 10
Japan 10/15 (1, 5) 10
Jordan 10 12
Kazakhstan 10 10
Korea, Republic of 10/15 (1, 3) 10
Kosovo 10 (25) 10
Kuwait 10 10
Kyrgyzstan 10 10
Latvia 10 5/10 (12)
Lebanon 10 10
Lithuania 10 5/10 (12)
Luxembourg 10/15 (1, 4) 10
Macedonia 10 10
Malaysia 15 (1) 10
Malta 10 10
Mexico 15 (24) 10
Moldova 10 10
Mongolia 10 10
Morocco 10 10
Netherlands, The 10/15 (1, 4) 10
New Zealand 10/15 (1, 20) 10
Northern Cyprus, Turkish Republic of 10 10
Norway 5/10/15 (1, 19) 10
Oman 10 (17) 10
Pakistan 10 10
Philippines 10 10/15 (26)
Poland 10 10
Portugal 10/15 (1, 4) 10
Qatar 10 10
Romania 10 10
Russia 10 10
Saudi Arabia 10 (15) 10
Serbia-Montenegro 10 10
Singapore 7.5/10 (8) 10
Slovakia 10 10
Slovenia 10 10
South Africa 10 10
Spain 10/15 (1, 9) 10
Sudan 10 10
Sweden 15 (1) 10
Switzerland 5/10 (21) 10
Syria 10 10/15 (13)
Tajikistan 10 10
Thailand 10/15 (1, 10) 15
Tunisia 10 10
Turkmenistan 10 10
Ukraine 10 10
United Arab Emirates 10 10
United Kingdom 15 (1) 10
United States 10/15 (1, 7) 5/10 (11)
Uzbekistan 10 10
Vietnam 10 (2) 10
Yemen 10 (17) 10

Notes

  1. The local rate of 10% will be applied in the event a higher rate is stipulated in the agreement.
  2. For the interest income derived by the government of Turkey or to the Central Bank of Turkey, no WHT will be applied.
  3. A rate of 10% if the loan or other debt claim is for a period exceeding two years; 15% in all other cases.
  4. A rate of 10% if the loan is taken for a period exceeding two years; 15% in all other cases.
  5. A rate of 10% if the loan/credit is taken from a financial institution; 15% in all other cases.
  6. A rate of 10% if the loan is taken from a bank or a financial institution; 15% in all other cases.
  7. A rate of 10% if the credit/loan is taken from a bank, financial or savings institution, insurance company; 15% in all other cases.
  8. A rate of 7.5% if the loan is taken from a financial institution; 10% in all other cases.
  9. A rate of 10% if the interest is the result of a loan provided/given by a bank or if the interest is paid in return for an article of merchandise, or equipment given to the contracting state on credit; 15% in all other cases.
  10. A rate of 10% if the loan is taken from a financial institution, including insurance companies; 15% in all other cases.
  11. A rate of 10% for the use of, the right to use, or the sale (contingent on the productivity, use, or disposition) of any copyright of literary, artistic, or scientific work, including royalties in respect of motion pictures and works on film, tape, or other means of reproduction for use in connection with radio or television broadcasting, any patent, trademark, design or model, plan, secret formula, or process, or for information concerning, industrial, commercial, or scientific experience; 5% for the use of or the right to use industrial, commercial, or scientific equipment.
  12. A rate of 5% for the use of industrial, commercial, or scientific equipment; 10% in all other cases.
  13. A rate of 15% for patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial, or scientific experience; 10% for the use of or the right to use any copyright of literary, artistic, or scientific work including cinematographic films and recordings for radio and television.
  14. A rate of 5% in respect of a loan or credit made, guaranteed, or insured for the purposes of promoting export by the Oesterreichische Kontrollbank AG or a similar Turkish public entity the objective of which is to promote the export; 10% if the interest is derived by a bank; 15% in all other cases.
  15. If the beneficial owner of the 'income from debt claims' is a resident of Saudi Arabia, the tax so charged shall not exceed 10% of the gross amount of income.
  16. A rate of 10% in respect of a loan or other debt claim for a period exceeding two years or if the interest is received by a financial institution; 15% in all other cases.
  17. Interest arising in one of the contracting states and paid to the government of Turkey or the Central Bank of Turkey shall be exempt from income taxes in the contracting state. Similarly, interest arising in the Republic of Turkey and paid to the government or the Central Bank of the other contracting state shall be exempt from income taxes in Turkey.
  18. Interest arising in Turkey and paid to the government of Canada or to the Bank of Canada shall be exempt from Turkish tax. Similarly, interest arising in Canada and paid to the government of Turkey or to the Central Bank of Turkey (Türkiye Cumhuriyet Merkez Bankasi) shall be exempt from Canadian Tax.
  19. The rate of the income tax shall not exceed (i) 10% if the interest is paid to a bank (also note that in the case of Turkey, a lower rate of 0% may apply for eligible financial institutions' and banks' loans under the domestic regulation) or (ii) 5% if the interest is paid to the Norwegian Government Pension Fund (Statens Pensjonsfond), the Norwegian Guarantee Institute for Export Credits (Garantiinstituttet for Eksportkreditt), the Turkish Social Security Fund (Sosyal Guvenlik Fonu) and the Eximbank of Turkey (Turkiye Ihracat Kredi Bankasi); 15% in all other cases.
  20. The rate of the income tax shall not exceed 10% if the interest is paid to a bank (also note that in the case of Turkey, under the domestic regulation, a lower rate of 0% may apply for the loans provided by eligible financial institutions and banks); 15% in all other cases. The interest shall be exempt from income taxes in the contracting state where it arises, if the payment is made to the government of Turkey, to the Central Bank of Turkey (Turkiye Cumhuriyeti Merkez Bankasi), to the government of New Zealand, or to the Reserve Bank of New Zealand.
  21. A rate of 5% of the gross amount of the interest paid in respect of a loan or credit made, guaranteed, or insured for the purposes of promoting export by an Eximbank or similar institution, the objective of which is to promote the export; 10% if the interest is derived by a bank; 10% in all other cases.
  22. A rate of 15% from the use of, or the right to use, trademarks; 10% in all other cases.
  23. A rate of 5% in respect of loans or credits that are guaranteed, insured, and provided for the purposes of promoting export by the Finnish Export Credit or FINNVERA and the Turkish public institutions the objective of which is to promote exports; 10% if the interest is derived by a bank; 15% in all other cases.
  24. A rate of 10% if the payment is made to a bank; no taxation arises if the payment is made to the Central Bank of Mexico; no taxation arises if the payment is made to Banco Nacional de Comercio Exterior, S.N.C., Nacional Financiera, S.N.C., or Banco Nacional de Obras y Servicios Publicos S.N.C where the maturity of loan is more than three years; 15% in all other cases.
  25. For the interest income derived by governments or central banks of the contracting states, no WHT applies.
  26. The 15% rate applies to royalties paid for the use of, or the right to use, cinematographic films and films or tapes for radio or television broadcasting.

Anti-tax haven provisions

According to the law, all sorts of payments made to corporations (including branches of resident corporations) that are established or operational in countries that are regarded by the Turkish Council of Ministers to undermine fair tax competition (through taxation or other practices) may be subject to taxation in Turkey through withholding at a rate of 30%.

In the meantime, the Turkish Council of Ministers has not yet determined which countries receiving payments are considered 'tax havens'.


Last Reviewed - 15 August 2018

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