• Switzerland - Turkey
    Tax Treaty Enters Into Force

    10-05-2012

    The Switzerland - Turkey Income Tax Treaty has entered into force on 8 May 2012.

    The provision of the treaty will come into effect from 1 January 2013.

    In accordance with the signed treaty, the following withholding taxes will apply:

    • Dividends:
      1. Dividend payments from Switzerland to Turkey:
        • 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 20% of the capital of the company paying the dividends.
        • 15% in all other cases.
      2. Dividend payments from Turkey to Switzerland:
        • 5% if the beneficial owner is a company (other than a partnership) which holds directly 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.
        • 15% in all other cases.

    • Interest:
      • 5% if 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% in all other cases.

    • Royalties: 10% withholding tax on royalties.
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