Turkey Germany Double Taxation Agreement

Agreement between the Government of the Russian Federation and the Government of the Republic of Albania to avoid double taxation on income and capital taxes In addition to the above-mentioned agreements, Turkey is a signatory to the European Convention on Social Security. The Federal Department of Finance assumes no responsibility for errors or omissions in the texts of the contract made available here. The officially published versions in the Bundesgesetzblatt are still the relevant texts. Specific provisions apply to border workers in the following double taxation conventions: like most countries, Germany and Turkey apply a tax system based on the concept of residence or any other sufficient domestic relationship. If a person is considered to be established in Germany and/or Turkey, that person`s global income is subject to German and/or Turkish tax (unlimited tax); This would be the case if, in the case of a person, a person had a fixed or habitual residence, or, in the case of an entity, its headquarters or management in Germany and/or Turkey. When a person is not considered resident in Germany and/or Turkey but generates certain income from German or Turkish “sources” (for example. B dividends or interest, rental and rental of real estate or other property), only these source income are taxable (limited tax); in most cases, the limited taxation is met by the deduction. Double taxation agreements distribute tax duties among countries. However, they do not create new revenue requirements. Where there are competing assets, they allocate tax legislation to only one of the countries concerned in order to avoid double taxation. In this context, several scenarios are possible, in which a person`s income could be taxed twice, i.e. Germany and Turkey.

For example, a person who receives dividends from a German company that has a fixed residence in Germany and Turkey (unlimited double taxation) or who, if applicable, resides only in Turkey (German limited tax, unlimited Turkish tax). However, there is generally a consensus that such scenarios – which are due to the separate application of national tax systems – are economically unreasonable and therefore undesirable. Social security agreements have been concluded with the following countries: international tax law includes all legislation covering tax issues related to foreign countries. These include internal tax laws in Germany, such as the Income Tax Act and the Tax Law, as well as double taxation agreements that Germany has entered into with other countries. Through its tax law, Germany intends to avoid both double taxation and double non-taxation of individuals and businesses. Everyone must pay their fair share of the tax in their place of residence or in the place where they operate.

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