Today, many individuals and companies carry out their economic activities in more than one country. Taxation of the same person in more than one country, in the same period, on the same tax subject is called double taxation. Double taxation is an undesirable situation due to its negative effects on free competition, damaging the principle of equality in taxation and restricting capital transfers between countries. For this reason, countries carry out a number of studies to prevent double taxation and become a party to agreements. In this article, we will cover the steps to avoid double taxation as well as the details of the applications according to the legal legislation.<\/p>\n\n\n\n
The most important way to prevent double taxation is through agreements between countries. International conventions, to which two or more states are parties, regulate issues such as which state will have taxation jurisdiction, which methods will be used to prevent double taxation in cases where taxation jurisdiction overlaps, and which income elements will be included in the scope of double taxation prevention.<\/p>\n\n\n\n
Foreign capital investments are extremely important in terms of providing resources to the economy of our country. In order to encourage foreign investors to come to our country, to increase commercial activities, to develop economic relations and to reduce the aforementioned negativities, Turkey is currently party to double taxation avoidance agreements with 86 countries. These countries are as follows: Austria, Norway, South Korea, Jordan, Tunisia, Romania, the Netherlands, Pakistan, the United Kingdom, Finland, Cyprus, France, Germany, Sweden, Belgium, Denmark, Italy, Japan, the United Arab Emirates, Hungary, Kazakhstan, Macedonia, Albania, Algeria, Mongolia, India, Malaysia, Egypt, the People's Republic of China, Poland, Turkmenistan, Azerbaijan, Bulgaria, Uzbekistan, the United States, Belarus, Ukraine, Israel, Slovakia, Since the concept of \"residency\" differs according to the domestic laws of states, persons who wish to benefit from international agreements must obtain a certificate of residency from the competent authorities of the state in which they are a resident and submit this certificate to the relevant tax authorities. <\/p>\n\n\n\n In double taxation avoidance agreements, there are some principles for determining the country of taxation.<\/p>\n\n\n\n None of these principles is strictly preferred. Principles are determined according to the country with which the agreement is concluded. For example, in the case of agreements with developed countries, the origin principle is emphasized, while in the case of agreements with developing or undeveloped countries, the residence principle is emphasized.<\/p>\n\n\n\n According to the double taxation avoidance agreements between countries, there are some methods to avoid double taxation. These methods seen in the agreements are as follows:<\/p>\n\n\n\n In double taxation avoidance agreements, various income elements are handled differently. According to these income elements, it is determined which country has taxation authority or both countries are authorized. In cases where both countries are authorized to tax the income item, the measures mentioned above are applied to prevent double taxation.<\/p>\n\n\n\n The income elements addressed in the agreements can be listed as follows: Income from real estate assets, commercial earnings, international transportation earnings, dividend income, interest income, intangible rights, capital appreciation gains, income from self-employment activities, wage income, income from company board members, income from artists and athletes, pensions of private sector employees, wage income and pensions of public sector employees, income from teachers and students, and other income. Each of these elements is dealt with separately in contracts and subject to different principles and methods. For example, according to the Agreement on the Avoidance of Double Taxation between Germany and Turkey<\/a>;<\/p>\n\n\n\n -Almanya\u2019da ya\u015fayan T\u00fcrk vatanda\u015flar\u0131n\u0131n k\u00e2r pay\u0131ndan elde ettikleri gelirler<\/em> Almanya taraf\u0131ndan vergilendirilir, T\u00fcrkiye\u2019ye ise en fazla %15 olmak \u00fczere s\u0131n\u0131rl\u0131 bir vergilendirme yetkisi tan\u0131nm\u0131\u015ft\u0131r. T\u00fcrkiye\u2019de \u00f6denen vergi, Almanya\u2019da \u00f6denen vergiden mahsup edilecektir.<\/p>\n\n\n\n Self-employment earnings<\/em> will be taxed in Turkey and exempt from taxation in Germany if they have a permanent establishment in Turkey or if they spend at least 183 days of their 12-month activity period in Turkey. As can be seen from the example, there are different regulations for each item.<\/p>\n\n\n\n We provide services to citizens living in Germany for company incorporation and taxation procedures<\/a> in Turkey with our expert company incorporation lawyers. You can use the contact form<\/a> or Whatsapp button to contact us.<\/p>","protected":false},"excerpt":{"rendered":" G\u00fcn\u00fcm\u00fczde pek \u00e7ok ger\u00e7ek ki\u015fi ve \u015firket birden fazla \u00fclkede ekonomik faaliyetlerini s\u00fcrd\u00fcrmektedir. Birden fazla \u00fclkede ayn\u0131 ki\u015fiden, ayn\u0131 d\u00f6nemde, ayn\u0131 vergi konusu \u00fczerinden vergi al\u0131nmas\u0131 \u00e7ifte vergilendirme olarak adland\u0131r\u0131lmaktad\u0131r. \u00c7ifte vergilendirme; serbest rekabeti olumsuz etkilemesi, vergilendirmede e\u015fitlik ilkesini zedelemesi, \u00fclkeler aras\u0131ndaki sermaye ge\u00e7i\u015flerini k\u0131s\u0131tlamas\u0131 gibi sebeplerle istenmeyen bir durumdur. Bu nedenle \u00fclkeler \u00e7ifte vergilendirilmenin…<\/p>","protected":false},"author":2,"featured_media":39559,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[149],"tags":[],"class_list":["post-39814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bloglarimiz"],"acf":[],"_links":{"self":[{"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/posts\/39814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/comments?post=39814"}],"version-history":[{"count":3,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/posts\/39814\/revisions"}],"predecessor-version":[{"id":39996,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/posts\/39814\/revisions\/39996"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/media\/39559"}],"wp:attachment":[{"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/media?parent=39814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/categories?post=39814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fidelishukuk.com\/en\/wp-json\/wp\/v2\/tags?post=39814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Kuwait, Russia, Indonesia, Lithuania, Croatia, Moldova, Singapore, Kyrgyzstan, Tajikistan, Czech Republic, Spain, Bangladesh, Latvia, Slovenia, Greece,
Syria, Thailand, Sudan, Luxembourg, Estonia, Iran, Morocco, <\/em><\/p>\n\n\n\n\n
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Income Elements Regulated in Double Taxation Treaties<\/strong><\/h2>\n\n\n\n