Tax Treaty: Austria-Turkey

The 2008 tax treaty replacing the 1970 treaty between the two countries entered into force on 1 October 2009 and will apply generally as from 1 January 2010. Once in effect, the treaty provides for a 5% withholding tax on dividends paid to a company (other than a partnership) that holds directly at least 25% of the capital of the payor company; otherwise, the rate will be 15%. The general rate on interest will be 15%, reduced to 10% if derived by a bank and 5% for certain public export-related loans. Royalties will be subject to a 10% rate.