The Philippines and Turkey signed an Income Tax Treaty in March 2009. Details of the treaty have become available.
The treaty was concluded in both Turkish and English with each text having equal authenticity.
The maximum withholding tax rate on dividends is 15%. Where the beneficial owner is a company which holds directly at least 25% of the capital of the company paying the dividends, the withholding tax rate will be 10%.
The withholding tax rate on interest will be 10%, subject to certain exceptions. On royalties, the general withholding tax rate is 10%. For royalties arising from the use of, or the right to use, any cinematographic films and films or tapes for television or radio broadcasting, the withholding tax rate will be 15%.
The treaty generally follows the UN Model (2001). However, some deviations from the UN Model have been included.
