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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 |
This Agreement shall apply to
persons who are residents of one or both of the Contracting
States.
(1) This Agreement
shall apply to taxes on income and on capital gains
imposed by either Contracting State irrespective of
the manner in which they are levied.
(2) There shall
be regarded as taxes on income and on capital gains
all taxes imposed on total income, on total capital
gains, or on elements of income or of capital gains,
including taxes on gains from the alienation of movable
or immovable property, as well as taxes on capital
appreciation.
(3) The existing
taxes which are the subject of this Agreement are:
(a)
in the Republic of Turkey:
(i) the income
tax; and
(ii) the corporation tax;
(hereinafter referred to as `Turkish tax`);
(b) in the
United Kingdom of Great Britain and Northern Ireland:
(i)
the income tax;
(ii) the corporation tax; and
(iii) the capital gains tax;
(hereinafter referred to as `United Kingdom tax`).
(4) This Agreement
shall also apply to any identical or substantially
similar taxes which are imposed by either Contracting
State after the date of signature of this Agreement
in addition to, or in place of, the existing taxes.
The competent authorities of the Contracting States
shall notify each other of changes which have been
made in their respective taxation laws.
Article
3 |
General
definitions |
(1) For the purposes
of this Agreement, unless the context otherwise requires:
(a) the term
`Turkey` means the territory of the Republic of
Turkey, and any area in which the laws of Turkey
are in force, as well as the Continental Shelf over
which Turkey has, in accordance with international
law, sovereign rights to explore and exploit its
natural resources;
(b) the term `United Kingdom` means
Great Britain and Northern Ireland, including any
area outside the territorial sea of the United Kingdom
which in accordance with international law has been
or may hereafter be designated, under the laws of
the United Kingdom concerning the Continental Shelf,
as an area within which the rights of the United
Kingdom with respect to the sea bed and sub-soil
and their natural resources may be exercised;
(c) the term `national` means:
(i) in relation
to Turkey, any individual possessing Turkish nationality
in accordance with the Turkish Nationality Code;
and any legal person, partnership or association
deriving its status as such from the law in force
in Turkey;
(ii) in relation to the United
Kingdom, any British citizen or any British subject
not possessing the citizenship of any other Commonwealth
country or territory, provided he has the right
of abode in the United Kingdom; and any legal
person, partnership, association or other entity
deriving its status as such from the law in force
in the United Kingdom;
(d) the terms
`a Contracting State` and `the other Contracting
State` mean Turkey or the United Kingdom as the
context requires;
(e) the term `tax` means any tax
covered by Article 2 of this Agreement;
(f) the term `person` comprises
an individual, a company and any other body of persons;
(g) the term `company` means any
body corporate or any entity which is treated as
a body corporate for tax purposes;
(h) the term `registered office`
in relation to Turkey means the legal head office
registered under the Turkish Code of Commerce;
(i) the terms `enterprise of a
Contracting State` and `enterprise of the other
Contracting State` mean respectively an enterprise
carried on by a resident of a Contracting State
and an enterprise carried on by a resident of the
other Contracting State;
(j) the term `international traffic`
means any transport by a ship, an aircraft or a
road vehicle operated by an enterprise of a Contracting
State, except when the ship, aircraft or road vehicle
is operated solely between places in the other Contracting
State;
(k) the term `political subdivision`
in relation to the United Kingdom, includes Northern
Ireland;
(l) the term `competent authority`
means, in the case of Turkey the Minister of Finance
and Customs or his authorised representative, and
in the case of the United Kingdom the Commissioners
of Inland Revenue or their authorised representative.
(2)
As regards the application of this Agreement by a Contracting
State any term not otherwise defined shall, unless the
context otherwise requires, have the meaning which it
has under the laws of that Contracting State relating
to the taxes which are the subject of this Agreement.
(1) For the purposes
of this Agreement, the term `resident of a Contracting
State` means any person who, under the laws of that
State, is liable to tax therein by reason of his domicile,
residence, registered office, place of management
or any other criterion of a similar nature.
(2) Where by
reason of the provisions of paragraph (1) of this
Article an individual is a resident of both Contracting
States, then his status shall be determined as follows:
(a)
he shall be deemed to be a resident of the Contracting
State in which he has a permanent home available to
him; if he has a permanent home available to him in
both Contracting States, he shall be deemed to be
a resident of the Contracting State with which his
personal and economic relations are closer (centre
of vital interests);
(b) if the Contracting State in which
he has his centre of vital interests cannot be determined,
or if he has not a permanent home available to him
in either Contracting State, he shall be deemed to
be a resident of the Contracting State in which he
has an habitual abode;
(c) if he has an habitual abode in
both Contracting States or in neither of them, he
shall be deemed to be a resident of the Contracting
State of which he is a national;
(d) if he is a national of both Contracting
States or of neither of them, the competent authorities
of the Contracting States shall settle the question
by mutual agreement.
(3) Where by
reason of the provisions of paragraph (1) of this
Article a person other than an individual is a resident
of both Contracting States, then it shall be deemed
to be a resident of the Contracting State in which
its place of effective management is situated. However,
where such a person has the place of effective management
of its business in one of the Contracting States and
the place of its registered office in the other Contracting
State, then the competent authorities of the Contracting
States shall determine by mutual agreement the Contracting
State of which the company shall be deemed to be a
resident for the purposes of this Agreement.
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