17January2019

TURKEY – QATAR TREATY OF DOUBLE TAXATION AVOIDANCE

“The Treaty of Avoidance for Double Taxation in Taxes Collected from Incomes and Tax Evasion between the Republic of Turkey and State of Qatar” (the “Treaty”) has signed on December 18th, 2016 at the II. Turkey – Qatar Supreme Strategic Committee meeting to revise the “Treaty of Double Taxation Avoidance in Taxes Collected from Incomes between the Republic of Turkey and State of Qatar” with December 25th, 2001 signature date and February 11th, 2008 effective date.

Herein this Treaty and related Protocols along with the official Letters shall be considered as appropriate with the 7158 numbered Law published on 28.12.2018 dated Official Gazette; and decided to be approved by the 527 numbered Presidential Decree published on 30.12.2018 dated Official Gazette.

The offsetting procedure is accepted as a way to avoid double taxation with the Treaty. The scope of the taxation for the Treaty is about the income and corporate income taxes in Turkey; and income taxes in Qatar. The incomes acquired from real estates shall be accrued in the country of which the real estate resides.

According to the 7th Article of the Treaty, commercial acquisitions that belong to an enterprise shall be subjected to taxation only in the Country where the enterprise resides as long as this enterprise commercially operates in the other Signatory Country. Besides, monitoring activities such as the constructions works last less than 12 months, instructions, montage or installation projects, shall not be subjected to taxation in the country where the activity takes place.

Regarding procurement of services; taxation is ensured in a Signatory Country when employees of an enterprise provide services, including consultancy, which exceeds 6 months duration in a 12-month period. Similarly, in a Signatory Country, a resident’s earnings will be taxed only in the related Signatory Country; if a service is provided in another Country, it could be taxed in the other Country. Incomes regarding freelance services will also be taxed in the resident’s Country; but in case the individual has a fixed residence in the other Country, income could only be taxed in the other Country and limited with the accredited amount to this Country.

Full treaty text in Turkish: http://www.gib.gov.tr/sites/default/files/uluslararasi_mevzuat/katar.html

The law that approves the treaty: Official Gazette

Written by Seda Arıcı, Posted in Bilateral Treaties

  • Notification !

    Contents provided on this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents of this notification without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance is put in the preparation of this article, CottGroup® and member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject. Prior to taking any action in regards the above, please consult your client representative if you are a customer of CottGroup® or consult to a relevant party.

About the Author

Seda Arıcı

Legal Consultant | Attorney
This website is using cookies.
In this website, we use cookies to develop your user experience, obtain efficient work and track statistical data. You are agreeing to our use of cookies by browsing our website. Please review Çerezler (Cookies) page for detailed information of how we manage the cookies. This choice is valid for 30 days until you delete the cookies in your web browser.
x