DoubleTaxationIndia – Türkiye tax treaty: residence, 183 days, rates
Agreement between the Republic of India and the Republic of Turkey for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income — signed at New Delhi on 31 January 1995
- Signed: 31/01/1995
- In force since: 01/02/1997
- Official text
If both countries treat you as resident
- Resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, resident of the State with which his personal and economic relations are closer (centre of vital interests). Art. 4(2)(a) India–Türkiye Agreement (1995)
- Where an agreement applies, the Act applies only to the extent more beneficial to the assessee (s. 159(4)). A non-resident may claim treaty relief only with a certificate of residence from the other country's government and the prescribed documents (s. 159(8)). Income-tax Act, 2025, s. 159
- If the centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, the individual is deemed a resident of the State in which he has an habitual abode. Art. 4(2)(b) India–Türkiye Agreement (1995)
- India's published English text (notification S.O. 74(E)): if he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement — there is no nationality test. The Turkish text and the English text published in Türkiye's Official Gazette (30.12.1996, No. 22863) instead apply nationality (c) and only then mutual agreement (d). The English text prevails in case of divergence, but the two countries' published English texts differ on this very point. Art. 4(2)(c) India–Türkiye Agreement (1995)
- Turkish text and the English text published in the same issue: if he has a habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; if he is a national of both States or of neither of them, the competent authorities shall settle the question by mutual agreement. Art. 4(2)(c)–(d) India–Türkiye Agreement (1995) — text in Türkiye's Official Gazette, 30.12.1996, No. 22863 (Decree 96/8779)
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year of the country of work; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 183 days in the tax year of the country of work. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 18(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6 |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. | Art. 10(2) |
| Interest (deposits, bonds, loans) | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2)(b) |
| Royalties (copyright, licences) | Source country: at most 15%; the country of residence relieves double taxation. | Art. 12(2) |
| Technical, consulting, management services | Source country: at most 15%; the country of residence relieves double taxation. | Art. 12(2), (4) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 13 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 21(3) |
How double taxation is relieved
- India: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(2)
- Türkiye: exemption: the income is not taxed but counts towards the rate on other income (credit for dividends, interest, royalties, fees for technical services, gains on sale) Art. 22(3)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.