The income tax treaty between Gambia and Turkey entered into force on 26 January 2018. The treaty, signed 11 February 2014, is the first of its kind between the two countries.

Taxes Covered

The treaty covers Gambian income tax and corporate tax and covers Turkish income tax and corporation tax.

Withholding Tax Rates

• Dividends - 5% if the beneficial owner is a company directly holding at least 10% of the paying company's capital; otherwise 15%
• Interest - 10%
• Royalties - 10%

Capital Gains

The following capital gains derived by a resident of one Contracting State may be taxed by the other State:

• Gains from the alienation of immovable property situated in the other State; and
• Gains from the alienation of movable property forming part of the business property of a permanent establishment in the other State.

Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.

Double Taxation Relief

Both countries apply the credit method for the elimination of double taxation.

Effective Date

The treaty applies from 1 January 2019.