The maximum withholding tax rates are:
15% on dividends in general and 10% if the beneficial owner is a company (excluding a partnership) holding directly at least 25% of the capital of the company paying the dividends;
|-||15% on interest in general and 10% on interest received by any financial institution including an insurance company. There is an exemption in the source state for interest derived by the government (as defined) or the central bank of one of the states, the Export-Import Bank of Thailand or the Turkish Exim bank; and|
|-||15% on royalties|
Thailand provides for the credit method to avoid double taxation. Turkey generally provides for the exemption-with-progression method to avoid double taxation, except in respect of dividends, interest, royalties and certain capital gains, where the credit method applies. The treaty includes a tax sparing provision operating in Turkey for 3 years from the applicable date for the treaty, under which taxes paid in Thailand include tax which would otherwise have been payable but for special incentive measures designed to promote economic development.
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