Tax Agreement Signed Between Canada and the Republic of Turkey

July 15, 2009

An Agreement between Canada and the Republic of Turkey for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on July 14, 2009, in Ottawa.

The Agreement limits the rate of withholding tax to 15% for dividends between affiliated companies, to 20% for dividends in all other cases, to 15% for interest, and to 10% for royalties.

The Agreement will enter into force once Canada and the Republic of Turkey have notified each other that all the necessary measures to give the Agreement the force of law in their respective countries have been completed. In Canada, the Agreement will have effect, in respect of tax withheld at source on amounts paid or credited to non-residents, on or after the first day of January in the calendar year following that in which the Agreement enters into force; and, in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year following that in which the Agreement enters into force.

For further information contact:

Tax Legislation Division
Phone: 613-369-4016