The income tax treaty between Argentina and Turkey came into effect on 13 September 2024. The treaty applies from 1 January 2025.
Signed on 1 December 2018, this treaty is the first between the two nations.
Earlier, Argentina ratified the tax treaty on 9 September 2024, which aims to prevent double taxation and avoid fiscal evasion regarding taxes on income between the two countries.
The treaty addresses Argentine income tax, as well as the presumed minimum income tax, alongside Turkish income tax and corporate tax. Both countries will utilise the credit method to eliminate double taxation.
Withholding tax rates
- Dividends: 10% if the beneficial owner holds at least 25% of the company’s capital for 365 days; otherwise, 15%.
- Interest: 12%, with an exemption for payments to the government or central bank of the other state.
- Royalties: 3% for news usage; 5% for literary, musical, or artistic works; and others 10%.
Capital Gains
Gains from selling shares of a company in the other State are taxed at 10% if the seller held at least 25% of the company’s capital in the past 365 days; otherwise, the rate is 15%.
