Envoy Calls Iran-Ankara Double Taxation Agreement as A Step Forward in Trade Ties
“The MoU signed between Iran and Turkey has been a wide stride in the (two countries’) trade relations,” Turkish Trade Attaché to Tehran Himet Gerish said in a meeting with economic activists in the Western Iranian city of Qazvin on Monday.
He attached much importance to the agreement, and described it as a crucially important outcome of the recent visits of Turkish Prime Minister Recep Tayyip Erdogan and Turkish ministers to Tehran.
Both Iranian and Turkish companies with foreign shareholders willing to avoid the double taxation of their profits benefit much from the provisions of the treaties signed between them and foreign parent countries. Both Iran and Turkey have a vast network of treaties of double tax avoidance treaties.
According to these treaties, the income and the capital is exempt from taxation, if the company is already paying taxes in the treaty country. In order to benefit from these provisions, the applicant must prove that the taxes are paid in the country of origin. Usually, the certificate of taxation from the foreign taxation authority is necessary and an application. However, if the profits are still charged a refund is also possible by providing a proof that the taxes were already paid.
These treaties are especially signed in order to attract the foreign investments so necessary for the Iranian and Turkish economies.
