2018 Turkey-Venezuela Income Tax Treaty Available

<p>Tax Analystst has obtained the English text of the Turkey-Venezuela income tax treaty signed December 3, 2018, in Caracas.</p> <p>Under the treaty, dividends are taxable at a maximum rate of 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 25 percent of the capital of the payer company. A 10 percent rate applies in other cases.</p> <p>Interest arising in Venezuela and paid to the Turkish government, the Central Bank of Turkey, or the Turkish Eximbank is exempt from Venezuelan tax, while interest arising in Turkey and paid to the Venezuelan government or the Central Bank of Venezuela is exempt from Turkish tax. In other cases, a 10 percent rate applies. Royalties are subject to a 10 percent tax rate. Both countries generally use the credit method to eliminate double taxation.</p> <p>This is the first income tax treaty between the two countries. It will enter into force upon the exchange of ratification instruments and its provisions will generally apply from January 1 of the year following entry into force.</p>

<p><a href="/lr/resolve//2cd6w">Spanish text</a>; <a href="/lr/resolve//2cd6v">Turkish text</a>. <a href="/lr/resolve//2919f">Prior coverage</a>.</p>

<p>Tax Analystst has obtained the English text of the Turkey-Venezuela income tax treaty signed December 3, 2018, in Caracas.</p>

Tax Analystst has obtained the English text of the Turkey-Venezuela income tax treaty signed December 3, 2018, in Caracas. Under the treaty, dividends are taxable at a maximum rate of 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 25 percent of the capital of the payer company. A 10 percent rate applies in other cases. Interest arising in Venezuela and paid to the Turkish government, the Central Bank of Turkey, or the Turkish Eximbank is exempt from Venezuelan tax, while interest arising in Turkey and paid to the Venezuelan government or the Central Bank of Venezuela is exempt from Turkish tax. In other cases, a 10 percent rate applies. Royalties are subject to a 10 percent tax rate. Both countries generally use the credit method to eliminate double taxation. This is the first income tax treaty between the two countries. It will enter into force upon the exchange of ratification instruments and its provisions will generally apply from January 1 of the year following entry into force.

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr><th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th><th>Main Country</th><th>Partner Country</th><th>Rate</th><th>Footnote 1</th><th>Footnote 2</th><th>Footnote 3</th><th>Footnote 4</th></tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>5/10</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>0/10 </td> <td>Interest arising in Venezuela and paid to the Turkish government, the Central Bank of Turkey, or the Turkish Eximbank is exempt from Venezuelan tax, while interest arising in Turkey and paid to the Venezuelan government or the Central Bank of Venezuela is exempt from Turkish tax. The 10 percent rate applies in other cases. </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>10 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Turkey - Venezuela: 2018 Income Tax Agreement

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2018 Turkey-Venezuela Income Tax Treaty Available