New Tax Treaty between Austria and Turkey

A new tax treaty between Austria and Turkey will come into force beginning 2010 January 1.

The new tax treaty is put in place of the old one, and will bring a company a withholding tax of 5% on dividends, if the company owns at least 25% of the capital of the paying company. The withholding tax rate on dividends is 15%, if the receiving party owns less than 25% of the paying company.

Withholding tax on royalties will be 10%. Loans taken for exportation will be subject to a 5% interest withholding tax, if signed by Oesterreichische Kontrollbank AG or a matching body in Turkey. Interest obtained from a bank will be subject to a 10% tax, and 15% on other incidences.

Read more about Austria Tax and Turkey Tax.