The income tax treaty between Hong Kong and Turkey took effect on 30 January 2026, marking their first such agreement to prevent double taxation and boost tax cooperation. It sets withholding tax rates of 5–10% for dividends, 7.5–10% for interest, and 7.5–10% for royalties.
The income tax treaty between Hong Kong and Turkey entered into force on 30 January 2026.
The treaty, signed on 24 September 2024, is the first income tax agreement between the two jurisdictions.
It aims to prevent double taxation and promote greater tax cooperation and transparency.
The agreement applies to Hong Kong’s profits tax, salaries tax and property tax, as well as Turkey’s income tax and corporation tax.
Withholding tax rates
- Dividends: 5% if the owner holds ≥25% of capital for 365 days, otherwise 10%
- Interest: 7.5% for loans/debts >2 years to financial institutions, otherwise 10%
- Royalties: 7.5% for industrial, commercial, or scientific equipment, otherwise 10%
Earlier, Turkey published Law No. 7569 in the Official Gazette on 26 December 2025, approving the ratification of its income tax treaty with Hong Kong.
