Explanation on The Context of Self-Employment Activities in Relation To Double Taxation Agreements

With the General Communique (serial number 4) on Prevention of Double Taxation Agreements (PDT Agreements) announced on September 26, 2017 the taxation context for the Self-Employed is elaborated. The Communique provides context on the Double Taxation Agreements which are signed by Türkiye and the taxes that arise from the incomes of the other signatory parties whom are either a corporate or a real person, from the services provided in Türkiye by self-employment activities or similar.

The subjects that are explained on the Communique are listed below, along with the Article numbers.

3. Taxation of Self-Employed Benefits of other country residents in accordance with the PDT Agreement clauses.

3.1. Forms of applications and arrangements of Self Employed income related to the DTP Agreements that Türkiye is a party of

3.2. Factors determining Türkiye’s authority on taxation within the scope of the PDT Agreements

3.2.1. Taxation authority regarding the location where self-employment activity is carried out

3.2.2. Türkiye's Taxation Authority on Self-Employed Activities carried out within in Türkiye

3.2.2.1. Performing Self-Employed Activities in Türkiye through a workplace or a specific place.

3.2.2.2. Performing Self-Employed Activity in Türkiye with due to long term stay.

3.2.2.3. Payment of the Self-Employed Activity through Türkiye.

3.3.1. Calculation of length of stay

3.3.2. Presenting and declaring Residency through Residency Document

4. Relation of the provisions of PDT Agreements with the Internal Laws and regulations

4.2. Withholding Tax Applications

5. Refund Applications

To access the full communique in Turkish please click. For further information, please contact your client representative or a specialized consultant.