Turkey has published Presidential Decision No. 4835 of 22 November 2021 in the Official Gazette, which includes that the income tax treaty with Venezuela entered into force on 14 October 2021. The treaty, signed 3 December 2018, is the first of its kind between the two countries.
The treaty covers Turkish income tax and corporate tax and covers Venezuelan taxes on income.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
Article 28 (Entitlement to Benefits) provides that a benefit under the treaty shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the treaty.
The treaty applies from 1 January 2022.