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| AGREEMENT
BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND AND THE REPUBLIC OF TURKEY FOR
THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
AND CAPITAL GAINS |
Article
19 |
Government
service |
(1)
(a) Remuneration,
other than a pension, paid by a Contracting State
or a political subdivision or a local authority
thereof to an individual in respect of services
rendered to that State or subdivision or authority
shall be taxable only in that State.
(b) However, such remuneration
shall be taxable only in the other Contracting State
if the services are rendered in that State and the
individual is a resident of that State who:
(i)
is a national of that State; or
(ii) did not become a resident
of that State solely for the purpose of rendering
the services.
(a) Any pension
paid by, or out of funds created by, a Contracting
State or a political subdivision or a local authority
thereof to an individual in respect of services
rendered to that State or subdivision or authority
shall be taxable only in that State.
(b) However, such pension shall
be taxable only in the other Contracting State if
the individual is a resident of, and a national
of, that State.
(3) The provisions
of Articles 15, 16 and
18 of this Agreement shall apply to remuneration
and pensions in respect of services rendered in connection
with any trade or business carried on by a Contracting
State or a political subdivision or a local authority
thereof.
Article
20 |
Students,
apprentices and trainees |
A student, business apprentice
or trainee who is or was immediately before visiting
a Contracting State a resident of the other Contracting
State and who is present in the first- mentioned State
solely for the purpose of his education or training
shall be exempt from tax in that State on:
(i)
all remittances made from abroad for the purpose of
his maintenance, education or training;
(ii) all scholarships, grants, allowances
and awards from governmental, charitable, scientific,
literary or educational organisations for the purposes
of his maintenance, education or training.
(1) An individual
who visits one of the Contracting States for a period
not exceeding two years for the purpose of teaching
or engaging in research at a university, college,
school or other recognised educational institution
in that Contracting State, and who immediately before
that visit was a resident of the other Contracting
State, shall be exempted from tax by the firstmentioned
Contracting State on any remuneration for such teaching
or research for a period not exceeding two years from
the date he first visits that State for such purpose,
provided that such remuneration arises from sources
outside the first-mentioned Contracting State.
(2) This Article
shall only apply to income from research if such research
is undertaken by the individual in the public interest
and not primarily for the benefit of some other private
person or persons.
Items of income of a resident
of a Contracting State, wherever arising, not dealt
with in the foregoing Articles of this Agreement,
other than income paid out of trusts, shall be taxable
only in that State.
Article
23 |
Elimination
of double taxation |
(1) Subject to
the provisions of the law of the United Kingdom regarding
the allowance as a credit against United Kingdom tax
of tax payable in a territory outside the United Kingdom
(which shall not affect the general principle hereof):
(a)
Turkish tax payable under the law of Turkey and in
accordance with this Agreement, whether directly or
by deduction, on profits, income or chargeable gains
from sources within Turkey (excluding in the case
of a dividend, tax payable in respect of the profits
out of which the dividend is paid) shall be allowed
as a credit against any United Kingdom tax computed
by reference to the same profits, income or chargeable
gains by reference to which the Turkish tax is computed.
(b) In the case of a dividend paid
by a company which is a resident of Turkey to a company
which is resident in the United Kingdom and which
controls directly or indirectly at least 10 per cent
of the voting power in the company paying the dividend,
the credit shall take into account (in addition to
any Turkish tax for which credit may be allowed under
the provisions of sub-paragraph (a) of this paragraph)
the Turkish tax payable by the company in respect
of the profits out of which such dividend is paid.
(2) For the purposes
of paragraph (1) of this Article, the term `Turkish
tax payable` shall be deemed to include any amount
which would have been payable as Turkish tax for any
year but for an exemption from, or reduction of, tax
granted for that year or any part thereof under any
of the following provisions of Turkish law:
(i) Additional
Articles 1 to 6 of Chapter VIII of the Income
Tax Law (Law No. 193 of 31 December 1960, as amended);
(ii) Paragraph 9 of Article 8
of Chapter 1, Part 11, of the Corporation Tax
Act (Law No. 5422 of 3 June 1949, as amended);
so far as they
were in force on, and have not been modified since,
the date of signature of this Agreement, or have been
modified only in minor respects so as not to affect
their general character; or
(b) any other provision which may
subsequently be made granting an exemption from, or
reduction of, tax which is agreed by the competent
authorities of the Contracting States to be of a substantially
similar character, if it has not been modified thereafter
or has been modified only in minor respects so as
not to affect its general character.
Provided that relief from United
Kingdom tax shall not be given by virtue of this paragraph
in respect of income from any source if the income
arises in a period starting more than ten years after
the exemption from, or reduction of, Turkish tax was
first granted in respect of that source.
(3) Subject to
the provisions of the law of Turkey regarding the
allowance as a credit against Turkish tax of tax payable
in a territory outside Turkey, United Kingdom tax
payable under the law of the United Kingdom and in
accordance with this Agreement in respect of income
(including profits and chargeable gains) derived by
a resident of Turkey from sources within the United
Kingdom shall be allowed as a deduction from the Turkish
tax on such income. Such deduction, however, shall
not exceed the amount of Turkish tax, as computed
before the deduction is made, attributable to such
income.
(4) For the purposes
of paragraphs (1) and (3) of this Article, profits,
income and capital gains derived by a resident of
a Contracting State which may be taxed in the other
Contracting State in accordance with this Agreement
shall be deemed to arise from sources in that other
Contracting State.
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