Double Taxation Avoidance

Tax Optimization for International Companies and Individuals

In an increasingly globalized economy, businesses, investors, and individuals often operate across multiple countries and may be subject to taxation in more than one jurisdiction. Double taxation occurs when income or assets are taxed in two or more countries simultaneously, leading to significant financial burdens.

Without proper tax planning, companies and individuals may face multiple tax obligations, including income tax, corporate tax, and capital gains tax, in different jurisdictions. Those particularly affected include:

  • Companies with international operations or foreign subsidiaries
  • Remote workers and expatriate employees
  • Investors with real estate or capital assets in different countries
  • Businesses providing cross-border services, royalties, or intellectual property licensing

Double Taxation Avoidance Agreements & Tax Optimization

Many countries have signed Double Taxation Avoidance Agreements (DTAAs) to prevent double taxation and encourage foreign investments. These DTAAs regulate where specific types of income should be taxed and offer tax benefits such as exemptions or tax credits. Proper application of these agreements can help significantly reduce tax liabilities and ensure a legally sound and efficient tax structure.

Türkiye is currently a party to 93 Double Taxation Avoidance Agreements in force. The main ones of these agreements, including the 3 main tax rates are as follows:

DTAAs

Tax Rates (%)

Country

Interest

Royalties

Dividend

Australia

10

10

5-15

Austria

15

10

5-15

Azerbaijan

10

10

12

Belgium

15

10

15-20

Bulgaria

10

10

10-15

France

15

10

15-20

Germany

10

10

5-15

Greece

12

10

15

Iran

10

10

15-20

Israel

10

10

10

Italy

15

10

15

Netherlands

10-15

10

15-20

People's Republic of China

10

10

10

Poland

10

10

10-15

Qatar

10

10

5-10

Russia

10

10

10

Spain

10-15

10

5-15

Switzerland

5-10

10

5-15

Turkish Republic of Northern Cyprus

10

10

15-20

Ukraine

10

10

10-15

United Arab Emirates

10

10

10-12

United Kingdom

15

10

15-20

United States of America

10-15

5-10

15-20

 

Our team of experienced lawyers and tax advisors assists businesses and individuals in avoiding double taxation by developing customized solutions that comply with both national and international tax regulations. We help you identify tax-saving opportunities and implement long-term strategies for your cross-border activities..

Our Services for Avoiding Double Taxation

  • Analysis and Application of Double Taxation Avoidance Agreements (DTAs) – Determining the correct taxation jurisdiction and legally optimizing tax liabilities.
  • Tax Residency Optimization for Businesses & Individuals – Structuring tax residency to avoid unnecessary tax burdens.
  • International Tax Planning & Advisory – Developing tax strategies for global business models.
  • Transfer Pricing and Tax Documentation – Ensuring compliance with international transfer pricing regulations.
  • Withholding Tax Reduction & Refund Claims – Minimizing or reclaiming withholding taxes on dividends, interest, and royalties under DTAAs.
  • Support in Tax Disputes & Negotiations with Authorities – Legal representation and advisory in tax audits and disputes.
  • Tax Advisory for Expats & International Investors – Assessing tax obligations when relocating or investing abroad.

Focus Areas – Our Expertise in International Tax Law

  • Application of Double Taxation Avoidance Agreements (DTAAs)
  • International Tax Optimization for Businesses and Individuals
  • Tax Structuring for Foreign Investments
  • Reduction of Withholding Tax on Dividends, Interest & Royalties
  • Transfer Pricing & International Tax Documentation
  • Tax Advisory for Expats & Global Business Models
  • Tax Dispute Resolution & Negotiations with Authorities