Philippines and Turkey signed an Income Tax Treaty on March 2009, for the avoidance of double taxation. The treaty was concluded in both the Turkish and English language with each text having equal authenticity.
The maximum withholding tax rate on dividends is 15%. However, 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 some exceptions. On royalties, the withholding tax rate is 10%. But, 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, there are some deviations from the UN Model.
