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