Double Taxation Agreement Germany Turkey

Under the treaty, the place of residence of this company is set by mutual agreement through a case-by-case procedure for contractual purposes, i.e. the competent German and Turkish authorities strive to regulate the status of the dual-residence company. Unlike the old treaty, it is expressly established in the treaty that if the competent authorities fail to reach an agreement, the dual-residence company is not established in Germany or Turkey. It is thus specified that a dual-residence company will not be able to benefit from the contract if the authorities do not reach a mutual agreement. To resolve such tax disputes, most countries have agreed on bilateral double taxation agreements. These contracts are generally negotiated on the basis of the OECD or the UN Convention on Musterric Taxation, which both reflect a general understanding and provide guidance on how tax legislation should be distributed or shared between the two countries concerned with respect to certain income items. Specific provisions apply to border workers in the following double taxation conventions: in addition to double taxation agreements on income and capital taxes, there are also special double taxation agreements for inheritance and gift taxes as well as vehicle tax. There are also agreements for legal assistance, administrative assistance and information exchange. The exchange of information between tax authorities is particularly important for the detection and fight against tax evasion and evasion and to ensure good taxation. The new double taxation convention between Turkey and Germany is based on the OECD`s tax treaty model. One reason for the termination and renegotiation was that, under the old double taxation agreement between Germany and Turkey, pensions had to be taxed exclusively by the state of residence, so that Germany would not have a tax right under the standard scenario of a German pension right of a Turk established in Germany (formerly employed in Germany). Under the new contract, the state in which the pension is paid (typically Germany) can collect a tax that does not exceed 10% of the gross amount of the pension. In addition to the above-mentioned agreements, Turkey is a signatory to the European Convention on Social Security.

The colour-coded world map shows the countries with which Germany entered into double taxation agreements on income and capital taxes on 1 January 2019, as well as legal assistance and mutual assistance agreements (including the exchange of information). It also shows the countries with which Germany is negotiating such agreements for the first time. There is also an agreement between the German Taipei Institute and the Taipei Representative Office in Berlin.