Double Tax Treaty Turkey – Bulgaria

Double Tax Treaty Turkey – Bulgaria

Updated on Monday 13th March 2017

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Double-Tax-Treaty-Turkey-Bulgaria.jpgTurkey and Bulgaria have registered fruitful collaborations during history in all kinds of activities and industries. A double taxation agreement between the two countries was mandatory and was signed in September 1997 and entered into force one year later. If you want details about the taxation system in Turkey and about the legal services we can provide for your company, you may solicit help and assistance from our Turkish lawyers.

Information about the double tax treaty Turkey - Bulgaria

From the beginning, we remind that the convention protects both companies and natural persons from double taxation on incomes and profits. The royalties, interests, immovable property gains, dividends, and incomes will be levied only in the country of residence or where the activities take place, in our case in Turkey or in Bulgaria. Foreign investors should know that the taxes paid for interests to a public body shall be exempt from taxation in Turkey. The double tax treaty between Turkey and Bulgaria was necessary to avoid tax fraud and tax evasion.
Additional information about the taxation system and about the signed conventions can be obtained from our lawyers in Turkey.

Taxes protected by the double tax convention

We remind that the dividends paid by a company in Turkey are levied with 5% tax rate, as for the royalties, the tax will not exceed 10%. The interests payments tax rate is settled at 15% for Bulgarian companies in Turkey. Regarding the incomes of natural persons who work under a legal agreement in one of the contracting countries, they will be levied on gains only in one state, where the activities take place. For other registered incomes, individuals may be subject to taxation in the home country.
We invite you to contact our law firm in Turkey for extra information about the double tax treaty between Turkey in Bulgaria and about the tax matters for your company.