Turkish Grand National Assembly Warning: You Are Viewing Act, The Parliamentary General Assembly Has Already Adopted. If It Does Not Include The Changes Made Later. Government Of The Republic Of Turkey Kingdom Of Bahrain

Original Language Title: TÜRKİYE BÜYÜK MİLLET MECLİSİ Uyarı: Görüntülemekte olduğunuz Kanun, TBMM Genel Kurulunda kabul edildiği halidir. Varsa daha sonra yapılan değişiklikleri içermemektedir. TÜR­Kİ­YE CUM­HU­Rİ­YE­Tİ HÜ­KÜ­ME­Tİ İLE BAH­REYN KRAL­LI­Ğ

Read the untranslated law here: https://www.tbmm.gov.tr/kanunlar/k5629.html

Law No. 5629


Acceptance Date: 25/4/2007

Article 1 on 14 November 2005, signed in Manama "Republic of Turkey and the Government of the Kingdom of Bahrain between the Government on Income of Double Taxation and Tax Evasion Agreement with Respect to Taxes" were appropriate approval n.
Article 2 of this Act shall enter into force on the date of publication.
Ministers executes the provisions of Article 3 of this Law.






GOVERNMENT OF THE REPUBLIC OF TURKEY

BETWEEN THE GOVERNMENT OF THE KINGDOM OF BAHRAIN
THROUGH THE INCOME TAX in the
PREVENTION OF DOUBLE TAXATION AND TAX EVASION AGREEMENT impeding the


THE GOVERNMENT OF THE REPUBLIC OF TURKEY AND THE GOVERNMENT OF THE KINGDOM OF BAHRAIN
double in taxes on income
the desire to avoid taxation and prevent tax evasion that an agreement hAVE AGREED tHE FOLLOWING
:

CHAPTER I SCOPE oF tHE AGREEMENT Article 1


PERSONS COVERED this Agreement, or any one of the Contracting States It shall apply to persons who are residents of the two. Article 2 TAXES COVERED


1. This Agreement, regardless of what form received in a Contracting State shall apply to taxes on income received by political subdivisions or local authorities.
2. including movable or immovable property are paid by enterprises with taxes on gains from the transfer fees or taxes are applied on the total amount of the salary, the total income or any tax levied on the items of income shall be considered taxes on income. 3
. Shall apply the Agreement, especially taxes that apply at the moment:
a) in Bahrain, 22/1979 No. Commandments Ruling in accordance paid income tax ( "oil tax")
(hereinafter referred to as "Bahrain tax" will be discussed.) || | b) Turkey:
i) the income tax; and
ii)
corporation tax (hereinafter referred to as "Turkish tax" will be mentioned).
4. The agreement also after the date of signature of the Agreement in addition to or in place of their existing taxes and the same quality as existing taxes or shall apply also to substantially similar taxes. The competent authorities of the Contracting States shall notify each other of significant changes which have been made in their taxation laws.
II. DEFINITIONS SECTION


Article 3 GENERAL DEFINITIONS 1
. For the purposes of this Agreement, unless otherwise defined therein shall:
a) i) "Bahrain" means the Kingdom of Bahrain the owner of that territory, as well as the international lawfully Bahrain on sovereignty and marine areas used by the jurisdiction, seabed and It refers to the land of gold;
Ii) the term "Turkey" Turkey's is the sovereignty, territorial sea, including territorial waters, the exploration of natural resources in accordance with international law, operation and jurisdiction of the conservation objectives or have the sovereign rights which refers to sea areas;
B) "a Contracting State" and "the other Contracting State", as required by the text, it refers to Bahrain or Turkey;
C) the term "tax" of this Agreement in Article 2 refers to the understanding of any tax;
D) "Person" means any individual, any organization that involves other people and create a company;

E) "company", the term refers to any organization or Akita established under any State or other of the laws or any other body recognized as an institution that is treated as any institution or corporate for tax purposes;
F) "national" means:
i) any natural person having the citizenship of a Contracting State;
Ii) any legal person deriving its status as the laws in force in a Contracting State, partnerships or associations
refers;
G) "a Contracting State" and "other Contracting State" mean, respectively, operated by a Contracting State-run resident of an enterprise of the other Contracting State to a resident means an enterprise;
H) "competent authority" means:
i) in Bahrain Minister of Finance or his authorized representative; and
ii) in Turkey, the Minister of Finance or his authorized representative represents
;
I) "International traffic" only ship performed in the other Contracting State boundaries, except aircraft or road vehicles in operation, the ship by a Contracting State, aircraft or road vehicles operated means any transport.
2. by a Contracting State to this Agreement in relation to any date in the application, any term not defined in the Agreement, unless öngörmedik otherwise, for the purposes of the taxes to which the Agreement applies, that date will have the meaning set forth in the State's legislation and in a sense is located in the tax legislation of that State, that State in other legislation will carry superior to the meaning given to that term. Article 4 RESIDENT


1. For the purposes of this Agreement, "a Contracting State to a resident" refers
a) Bahrain's side, Bahrain citizens who are concerned fiscal year, one or more times in a total of at least 183 days a real person in Bahrain, and Bahrain ' well established management center or a company or other legal entities in Bahrain;
B) the direction of Turkey, according to Turkish legislation domicile, residence, legal head office, place of management or any other criterion of a similar nature, because that means there taxpayer
any person.
This term, however only income derived from sources in a Contracting State or subject to tax in that State because of the capital gains does not include any person.
2. When the provisions of paragraph 1 are therefore a real person either Contracting State as residents, the situation of these people will be determined as follows:
a) Such person shall be deemed a resident of the State in which a house can be permanent. If you have a house that people can remain both the State as well as permanent, the personal and the State in which the resident will be considered closer economic relations (center of vital interests);
B) If the person's center of vital interests is contained by the state determined, or both States also do not have a home to be permanent, then it shall be deemed to State a resident of the house where the habit to remain;
c) If the person if there is a house where the habit of staying in either the State or both States also is not a house like these, this person is a resident only of the State in which the citizens will be accepted:
d) if he is a citizen of both States or is not a citizen of both States, the competent authorities of the Contracting States shall settle by mutual agreement.
3
. a person other than a natural person, the provisions of paragraph 1 is therefore also a resident of both Contracting States, that person will only be considered a resident of the State in which the place of effective management is situated. However, these people in one of the State's effective management of the center, is the other legal head office with the Contracting State of the competent authorities shall consult each other to determine by mutual agreement that this person is not considered a real effective management of the legal headquarters. Article 5 1


OFFICE. For the purposes of this Agreement, "permanent establishment" means a fixed place of business is wholly or partly carried out the business of an enterprise.
2. "Commercial" refers specifically to encompass the following:
a) a place of management;
B) Branch;
C) The Bureau;
D) plant;
E) a workshop;
F) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;
G) Refinery;
H) point of sale; and
i) a warehouse belonging to a person providing storage services for others. 3
. A 9-month period in excess of an ongoing construction site, construction or installation project constitutes a permanent establishment.
4. This article Notwithstanding the preceding provisions of "permanent establishment" following of the term shall be deemed to include:
a) of facilities solely for storage of goods belonging to the enterprise or merchandise, used for the purpose of display or delivery;
B) the maintenance of a stock of goods or merchandise only for storage, display or delivery of retention:
c) the maintenance of a stock of goods or merchandise solely for the purpose of processing by another enterprise;
D) a fixed place of work for only attempt to purchase goods or merchandise or held for collection of information;
E) a fixed place of work for which preparatory or auxiliary character for the enterprise, only to be held for any other business;
F) for a fixed place of work, only (a) to (e) of retention for any combination of activities mentioned in subparagraphs however, there must be work related activities preparatory or auxiliary character as a result of a combination of all of these activities be carried out on the hard ground.
5. 1 st and 2 nd paragraph shall notwithstanding the one person paragraph 6 in an agency except a Contracting State of an independent status to apply the provision is acting on behalf of an enterprise of the other Contracting State, that enterprise, the conditions below, it undertakes for the enterprise, this person all kinds of activities will therefore be deemed to have a permanent establishment in the first-mentioned Contracting State:
a) if the person, activity unless limited to the purchase of goods or merchandise for the enterprise, will have the first-mentioned State in respect of contracts concluded on behalf of the enterprise and uses this authority and habitually ; and
b) if the person, despite the absence of such authority, on behalf of the enterprise regularly shipped the order or give the goods or from the merchandise in the first-mentioned State and habitually maintains a stock of goods or merchandise.
6. A Contracting State in the other Contracting State, a tipster ongoing business only in the ordinary course of their business, general commission agent or independent status walked through any other agency shall be deemed to have a permanent establishment in that other State.

7. a company which is a Contracting State to a resident of the other Contracting State controls or in that other State carrying on business (whether through a permanent establishment or otherwise) controls the company or is controlled by it, each of these companies will create a permanent establishment of the other.
III. PART

TAXATION OF INCOME Article 6 INCOME OBTAINED FROM REAL ESTATE ASSETS

1. Income derived by a resident of a Contracting State from immovable property situated in the other Contracting State (including income from agriculture or forestry) may be taxed in that other State.
2. "Immovable property", the term shall be defined according to the laws of the Contracting State in which the assets in question. Terms in any case, property accessory to immovable property, agriculture (fish including breeding and cultivation) and tools used in agriculture and forestry, rights related to real estate property will be applied to private law, real estate usufruct rights and mineral deposits, sources and other natural resources at an operation or operating rights born to include rights over fixed or variable payments; ships and aircraft shall not be regarded as immovable property. 3
. The provisions of paragraph 1, the direct use of immovable property shall apply to income derived from the letting or use in any other form.
4. The provisions of paragraphs 1 and 3 paragraphs at the same time, an enterprise and self-employment activities and income earned from immovable property shall also apply to income derived from immovable property used for the performance. Article 7 BUSINESS PROFITS


1. The profits of a Contracting State, through a permanent establishment situated in the other Contracting State such enterprise carries on business there, unless there shall be taxable only in that State. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in that other State only to be limited to the amount attributable to that permanent establishment.
2. Paragraph 3 Without prejudice to, if a Contracting State were there on business through a permanent establishment situated in the other Contracting State, in both Contracting States gain attributable to that permanent establishment of this office under the same or similar conditions, the same or different at similar activities and if it were an independent enterprise and had won a completely independent character attempted to account for what the workplace will be earning a profit by the same amount. 3
. In determining the profits of a permanent establishment in the State in which the permanent establishment is located or conducted elsewhere, the aim of the management and workplace, including general administrative costs shall be allowed as deductions expenses appropriate.
4. Workplace, by such permanent establishment for the enterprise goods or merchandise shall be attributed only no gain due to the purchase.
5. Earnings receives the scope of income elements arranged separately in other Articles of this Agreement, the provisions of those Articles shall not be affected by the provisions of this Article. Article 8

SEA AND AIR TRANSPORT
1. Of a Contracting State, or aircraft in international traffic derived from the operation of transport means that revenue shall be taxable only in that State.

2. enterprise of a Contracting State from the operation of ships in international traffic that revenue are taxed in the other Contracting State, but the tax that will be taken in the other State shall be reduced by an amount equal to 50% of this amount. 3
. Article 1 paragraph 2 of this Article and shall at the same time, a partnership, a joint venture or an international operating agency the participation shall also apply to the income obtained. Article 9 ASSOCIATED ENTERPRISES


1. a) A Contracting State participates directly or indirectly in the management of the other Contracting State, when he joined, control or capital, or
b) the same persons participate directly or indirectly in a Contracting State and the other Contracting State administration, attends control or capital | the || and in both cases, that occur in commercial or financial relations between the two undertakings or imposed conditions when differ from those which would be made between independent enterprises, should be in one of these undertakings, but these conditions due to the accrued, may be included in the profits of that enterprise and accordingly taxable.
2. Where a Contracting State taxes includes in the profits of an enterprise, in the case of the other Contracting contain the income of the State is taxed in that other State enterprises and at the same time taking into conditions consideration should be between two independent undertakings subsequently the first-mentioned State made calculations that earnings determined as a result, other State's place to determine If there is a conviction that the amount of the taxes on those profits shall make the necessary corrections. This adjustment, other provisions of this Agreement shall be considered and shall consult the competent authorities of the Contracting States when required. Article 10 DIVIDENDS


1. the other Contracting State to a resident of dividends paid by a company which is a resident of a Contracting State, may be taxed in that other State.
2. However, such dividends may, at the same time the company paying the dividends is a resident of the Contracting State and taxed according to the laws of that State; but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed the following rates;
A) The real beneficiaries, the company paying the dividends is a company which holds directly at least 25% of the Shares (other than a partnership) and 10% of the gross amount of the dividends;
B) in all other cases 15% of the gross amount temüt. 3
. This article is used in the "dividends", the term of the shares, or one of jouissance jouissance shares, mining shares, according to the laws of the State of which he is a resident of the companies engaged in the distribution and the income derived from other rights participating in profits not from the founders' shares or debt-claims, but the income derived from the shares for tax purposes It is treated as means revenue obtained from other companies rights.
4. a Contracting State company earnings which there business in the other Contracting State through a permanent establishment situated therein, after having been taxed under Article 7, where the work on the remaining amount Contracting State and that State is taxed in accordance with the internal regulations.

5. A Contracting State is the beneficial owner of the residents of the dividends, if the dividends paid by companies resident that other Contracting State has been there on business through a permanent establishment situated or is found there in self-employed activities by that other State situated at a fixed location and dividend concerned with the events of acquiring it It is effectively a link between the permanent establishment or fixed place, and paragraph 2 of Article 1 shall not apply. In this case, Article 7 or Article 14 as the case may be, shall apply.
6. This article 4 paragraph shall, without prejudice to a company which is a Contracting State to a resident of the other Contracting State in the profits or income from the other State may not impose any tax on the dividends paid by the company. The exception to the question of dividends paid to a resident of that other State or one of its dividend achieve progress event with a permanent establishment in that other State which is not an effective form of bonds. In the same way that other State, also on undistributed earnings of these companies can not afford an undistributed profits tax. The dividends paid or the undistributed profits consist wholly or partly of profits does not change the status or income arising in that other State. Article 11 INTEREST


1. Arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State of which were obtained and compared to that State's legislation; However, if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3
. This article is used in the "interest" means, whether or not connected to the mortgage guarantee or borrower you know you recognize their right to participate in the profits of any type, the income and especially the credit, government securities, bonds or derived from debt securities income such securities, bonds or to debt securities for premiums and bonuses, as well as all other income represents income Lending considered similar legislation has been achieved by the state's tax revenues.
4. the beneficial owner of the interest of a Contracting State, is found there in commercial activities through the other Contracting State through a permanent establishment situated is obtained interest or is found there in self-employed activities by that other State in the area where a fixed place and the permanent establishment or fixed and will be paid as the interest in question is effectively a link between ground, 1st and 2nd paragraph shall not apply. In this case, according to case, of Article 7 or Article 14 shall apply.
5. A Contracting State or a political subdivision, a local authority or the interest paid by a resident of that State, shall be deemed to arise in that State. However, the person paying the interest, whether a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest payment or a fixed base and such interest is borne by such permanent establishment or fixed base, the question of interest, establishment or fixed Contracting State shall be deemed to which it has been obtained.

6. The amount of interest paid in exchange for receivables from real beneficiaries payer or because of a special relationship with any other person with both, exceeds the amount which would have been agreed which case the payer and the beneficial owner is such a relationship, provisions of this Article shall apply only to the last-mentioned amount. In this case, an additional payment, taking into consideration other provisions of this Agreement shall be taxable according to the laws of each Contracting State. Article 12 of


ROYALTIES 1. A Contracting State arising in the other Contracting State and paid to a resident of intangible royalties, may be taxed in that other State.
2. However, they obtained in the Contracting State in which it said royalties are taxed according to the state legislation; however, the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged 10% of the gross amount of the royalties royalties' s shall not exceed. 3
. This article is used in "royalties" to the term, movies and films, tapes and other video or audio, including reproduction equipment, literary, artistic or scientific work of the copyright of any patent, trade mark, design or model, plan, in exchange for the use or right of use of the secret formula or process, or industrial, commercial or scientific experience-based knowledge or for industrial, commercial or use of scientific equipment, or made in exchange for the right to use all kinds of means of payment.
4. A Contracting State is the beneficial owner of the royalties, which, if it's found there on business through a permanent establishment situated in the other Contracting State in which he obtained the said sum or found there in self-employed activities by that other State situated at a fixed location and deserve payment of the said sum or is effectively a link between the presence of such permanent establishment or fixed base, and paragraph 2 of Article 1 shall not apply. In this case, according to case, of Article 7 or Article 14 shall apply.
5. A Contracting State or a political subdivision, a local authority or of the royalties paid by a resident of that State, shall be deemed to arise in that State. However, the person paying the royalties, whether a Contracting State or not, has in a Contracting State on royalties to a permanent establishment in connection with which the right or property giving rise to payment or a fixed base and the royalties are borne by such permanent establishment or fixed base, the subject to royalties costs will be deemed as permanent establishment or fixed base obtained Contracting State.
6. Use the amount of right or information for royalties paid in exchange for royalties, between the beneficial owner and the payer or the reason of a special relationship with any other person with both, if the payer in the absence of such a relationship exceeds the amount to be agreed between the real beneficiaries of these provisions are only the most It shall apply to the last-mentioned amount. In this case, an additional payment, taking into consideration other provisions of this Agreement shall be taxable according to the laws of each Contracting State.

Article 13 CAPITAL GAINS

1. Mukîmîne of a Contracting State, situated in the other Contracting State, and Article 6 of the gains derived from the alienation of immovable property referred to, may be taxed in that other State.
2. A Contracting State in the other Contracting State included in the commercial assets of a business owned by the other or movable property in a Contracting State a resident of the Contracting State in self-employed activities it uses to perform from the alienation of movable property belonging to a fixed place Gains, this establishment (alone or with the whole enterprise together ) or including gains from the disposal of fixed base, may be taxed in that other State. 3
. A Contracting State by operated in international traffic, ships, aircraft or road vehicles or such ships or aircraft derived from the alienation of movable property pertaining to the operation of transport means the gains shall be taxable only in that State.
4. resident of a Contracting State by 1, 2 and supplied from the alienation of any property other than that referred to in paragraph 3 and gains arising in the other Contracting State, may be taxed in that other State. Article 14 Independent Personal Services


1. Income derived by a resident of a Contracting State from his professional services or other activities of an independent character shall be taxable only in that State. However, if such services or activities performed in that other State and if:
a) people in that other State for the purpose of performing those services or activities that can be used if a fixed place regularly; or
b) people in that other State, in order to perform those services or activities, continuing a total of 183 days or more stays at one or more times in any 12-month period,
said income at the same time in the other Contracting State may be taxed .
In such a case, according to the event, or only attributable to that fixed income is concerned, or that other State in the current derived from the services or activities performed during the period taxed in that other State.
2. "Professional services" includes especially independent scientific, literary, artistic, educational or teaching activities, as well as doctors, lawyers, engineers, architects, dentists and the independent activities of accountants. Article 15 INCOME FROM EMPLOYMENT


1. 16, 18, 19 and Article 20 of the provisions for a service contract due wages earned in a Contracting State a resident of wages and other similar remuneration, that unless the employment is exercised in the other Contracting State shall be taxable only in that State. If the services are rendered in that other State, the said income derived therefrom may be taxed in that other State.
2. 1 Notwithstanding the provisions of paragraph, a Contracting State a resident of the income derived by a service exercised in the other Contracting State if:
a) persons who generate revenue, the other States, in any 12-month period commencing or ending in the fiscal year concerned a or several at once if a period not exceeding in the aggregate 183 days, and
b) Payment If the other state residents without an employer by or on behalf of an employer, and
c) the remuneration, the employer of an establishment which has in the other State or fixed if there is space

Shall be taxable only in the first-mentioned State. 3
. Notwithstanding the preceding provisions of this Article, a Contracting State by a ship operated in international traffic, aircraft or road vehicles in the performance of a service is due to income, it may be taxed in that State.
Article 16 PAYMENTS MADE BY A
MANAGER
of a Contracting State to a resident of the other Contracting State in which a resident of a company's board of directors to be members thus achieved fees and other similar payments, that other State may be taxed.
Article 17 ARTISTS AND SPORTSMEN


1. 14 and notwithstanding the provisions of Article 15, a Contracting State with theater, cinema, radio or television artist, or an artist as a musician or an athlete in another Contracting State has exercised that come from his personal activities, that other State may be taxed.
2. An artist or income in respect of personal activities as athletes exercised not to the entertainer or sportsman himself but to another person, that income 7, 14 and bound by the provisions of Article 15 notwithstanding the artist or taxed in the Contracting State in which the performance of the athlete's activities. 3
. income derived from operations by an entertainer or athlete exercised in a Contracting State, the visit to that State or all of the other Contracting State the part of almost all of its political subdivisions or local authorities if it is supported by public funds, shall be exempt from tax in that State. Article 18 PENSIONS


1. This Agreement, Article 19 of paragraph 2 of the provisions for the past work pension is paid and other similar payments, regular payments, as defined in paragraph 2 of this Article shall be taxable only in the State in which these payments the person is a resident.
2. The term "annuity" means, for a measurable benefit in money or money, depending on the obligation to make full and adequate payment for life or a specific or determinable period of time, at certain times, regularly paid represents the total amount. Article 19 GOVERNMENT SERVICE


1. a) a Contracting State in respect of services rendered by an individual to a political subdivision or local authority of that State or subdivision or made by the administration and the remaining charges except pensions, wages and other similar remuneration shall be taxable only in that State. However
b) that, if the services are carried out in other State and the individual is a resident of that State, such salaries, wages and other similar remuneration shall be taxable only in that other Contracting State. However, this person;
I) is a national of that State; or
ii) of that State to only offer this service did not become a resident status, it is imperative
.
2. a) a Contracting State in respect of services rendered by an individual to a political subdivision or local authority of that State or subdivision or authority or by the pensions paid from these established by the fund, shall be taxable only in that State.
B) However, if the natural person is a resident of the other Contracting State, and citizens, such pension shall be taxable only in that other State.
3
. A Contracting State or a political subdivision or local authority in return for services rendered in connection with a business carried on by salaries, wages and other similar remuneration and pensions of 15, 16, 17 and Article 18 shall apply. Article 20 TEACHERS AND STUDENTS


1. A Contracting State during the visit or the other Contracting State to a resident on the eve and the first-mentioned State solely for education or a student or apprentice who for the purpose of vocational training, payments for education or vocational training costs, the payment of the said first condition to arise from sources outside that State It shall not be taxed in the state.
2. Likewise, a Contracting State during the visit or the other Contracting State to a resident immediately before the first-mentioned State in the basis for an individual activities for a teacher or researcher said teaching or research available for a period or periods not exceeding two years in order to make as teaching or scientific research the first income obtained from sources other than the mentioned State shall be exempt from tax in the first-mentioned State. Article 21 OTHER INCOME


1. Born in a Contracting State and not dealt with explicitly stated in the previous article of this Agreement, it may be taxed in that State.
2. Items of income arising outside the two Contracting State shall be taxable only in the Contracting person who is a resident of that State revenue. Article 22 ELIMINATION OF DOUBLE TAXATION



1. A Contracting State when the provisions of this Agreement in accordance with derives income which may be taxed in the other Contracting State, the first-mentioned State, the resident from the tax on the income, will be allowed to deduct an amount equal to the income tax paid in that other State.
However, such deduction, which is attributable to the income which may be taxed in the other State shall not exceed the amount of income tax computed before the deduction.
2. in accordance with the provisions of this Agreement, if a Contracting State derived by income exempt from tax in that State, that State, such resident, in calculating the tax on the remaining income, take into account the exempted income.
IV. SPECIAL PROVISIONS Article 23


SECTION JUNCTION MINATION
1. Of a Contracting State citizens of the other Contracting State, that other State of its citizens under the same conditions, especially in terms of residency, any taxation can stay or they face and different from the related liability or heavier taxation or will be subject to the associated liability.
2. Article 10 of paragraph 4 of the provisions in a Contracting State a permanent establishment which has in the other Contracting State, the other States, according to the other State undertakings carrying on the same activities will be faced with less favorable taxation.
3. Article 9 paragraph 1 of Article 11 paragraph 6 or 12 'in Article 6 paragraph shall apply the provisions, except for cases of a Contracting State enterprise of the other Contracting State paid to a resident, royalties and other payments, the in determining the taxable profits of the subject enterprise, be deductible as if made to a resident of the first-mentioned State in the same circumstances.

4. A Contracting State by the other Contracting State by one or more residents, directly or indirectly, totally or partially owned capital or capital controlled enterprises, in the first-mentioned State to any taxation they are or may be applicable to other similar enterprises of the State and or different from the related liability they will be subject to heavier taxation or the related liability.
5. These provisions have its own resident of a Contracting State personal allowances due to personal or family circumstances apply, the tax base and discounts will not be understood in terms that you have to apply the resident of the other Contracting State. Article 24 Mutual Agreement Procedure


1. A Contracting State, if the Contracting State where one or both of the operations for which he created a taxation not in accordance with the provisions of this Agreement or will the conclusion that the State of the remedies provided by the domestic legislation to, as the event is a resident of the Contracting State of the competent authority or status Article 23 1 If you fall to the appropriate paragraph, the Contracting State of which he is a national competent authority.
2. The competent authorities appeal is justified and it can not reach a satisfactory solution is, in order to prevent a taxation contrary to this Convention shall endeavor by mutual agreement with the competent authority of the other Contracting State. 3
. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or tereddütü- arising from the interpretation or application of this Agreement. The authorities at the same time, resulting in cases not provided for in the Agreement may also consult together for the elimination of double taxation.
4. The competent authorities of the Contracting States may communicate directly with each other to reach agreement on the issues specified in the preceding paragraph. When the verbal exchange of views deemed necessary for reaching an agreement, these negotiations may be conducted through a Commission consisting of representatives of the competent authorities of the Contracting States. Article 25 EXCHANGE OF INFORMATION


1. The competent authorities of the Contracting States, as long as the mismatch with the agreement, a Contracting State may be able to help each political subdivision or implementation of local authorities predicted that about taxes in the All kinds and descriptions received by the Contracting States of the administrative and internal legislation and through the exchange of information related to the execution. Such information imposition of this tax assessment and collection of taxes will be problems with enforcement and collection of taxes or shall include the information provided is related to the investigation or prosecution. Information will be subject to change in accordance with the provisions of this article and in the manner provided for in paragraph 7 of this Article shall be subject to confidentiality provisions. the current state of the rights that are afforded to persons by the laws or administrative practices in demand and protective provisions, the effective exchange of information in a way that unnecessarily prevent or shall continue to apply to the extent that delay.
2. the current state of demand, need not present at its disposal, as well as provide information that does not have jurisdiction or control of the people within the economy.
3
. For the purposes of this article:
a) "public company" means, whether directly by the people of the shares, provided they can be sold, a securities generally accepted majority of the shares quoted on the stock market means any company. The purchase or sale of shares in publicly or with a limited group of investors implicitly, shares "by the people" tradable.
B) "the majority of the shares", the term refers to the company's majority voting power and value of the company shares, representing kinds or varieties.
C) "Generally accepted securities market" refers to the conduct of publicly traded shares trade
duly regulated refers to any stock exchange and, in particular, Bahrain's side, Bahrain Stock Exchange and the Stock Exchange in the direction of Turkey and Istanbul Stock Exchange expressed Exchange It will be.
D) "collective investment fund or project" means, irrespective of legal form, common means any investment. "Public collective investment fund or project" refers to funds or in units in the project, can easily be purchased by shares or other interests of the people, sold or provided to redemption means any collective investment fund or project. or units in the project funds, shares or other interests, purchase, sale or redemption transactions, while publicly or with a limited group of investors as implied by "the people" can easily be purchased, sold or amortized.
E) "applicant state" means the State requesting information.
F) "made by the requesting State", the term refers to requests for information from the State itself.
G) "information gathering measures" means, means allowing to obtain and provide the information requested by a State laws and administrative or judicial procedures.
H) "Information" means, in whatever way, any fact, statement or record indicates.
I) "criminal tax issues" refers to the applicant's criminal litigation matters in accordance with State law means the tax issues related to willful misconduct walkable.
J) "Criminal Law" refers to the tax law, regardless of whether or not in criminal law or other laws, criminal law refers to all arranged with internal regulations.
4. a) the competent authorities of the request made by the State in terms of the purposes specified in paragraph 1 of this Article shall provide information on request. Such information exchange, investigation into the issues that happen on the current state of demand in the transaction, regardless of whether it will be a criminal offense according to the current state of the law at the request will be made.
B) information on the current state of the competent authority on request, is not sufficient to meet demand, the State, for its own tax purposes regardless of whether the need for such information, the requested information will be used for all data collection related measures to ensure the applicant State.
C) The competent authorities of the current state in the request, the applicant State by the competent authority if specially requested, pursuant to this paragraph, the domestic legislation of the extent permitted, Arabic, Turkish and English languages, the written statement of the witnesses and the information consists of the actual record of certified copies will.

D) Each Contracting State, this article will be authorized in paragraph 1 in the acquisition and provide upon request the following information of competent authorities with regard to the purposes stated:
i) Chairman and trustee, including banks, other financial institutions and agencies the information contained in any field or trustee role-i just acting in his capacity as a person's hand;
Ii) to the companies, partnerships, trusts, foundations and property information for these people-including proprietary information belonging to other persons in an ownership chain to the scope of paragraph 2 of Article -b; in terms of trust, resident individuals, trustees and beneficiaries information; in terms of foundations and founders, board members and information on beneficiaries. In this article, the Contracting States to publicly traded companies or public collective investment funds or proprietary information -b information about the project can not be achieved without causing excessive difficulties and can not make offer to acquire spraying facilities ended liability.
E) in accordance with this Article, the competent authority of the applicant State, the competent authority of the current state of demand, in order to clearly show that the required information on the application shall provide the following information;
(Ii) examination or investigation on the identity of the person who carried out;
(Ii) the nature of the required information and the information of the requested State to the applicant and the manner in which the Government wants to take the property;
(Iii) Information as required in terms of which tax purposes;
(Iv) the current state of the required information in the request or reason to believe that a person within the current boundaries of the State of the requested authority;
(V) any person believed to have the information requested, the name and address far as we know;
(Vi) Knowledge of the request, the applicant State's legislation, to comply with the administrative application and requested that he be suitable for this material information, the applicant had been in a State's jurisdiction within the State's own legislation of the State of the competent authority or the normal functioning of the administrative practices can obtain this information will an explanation;
(Vii) Excessive except those that may lead to difficulties, a statement that the applicant State resorted to all possible means within their country's borders to reach the desired information.
F) the competent authority of the request made by the State Government will send the applicant the required information quickly as possible. The competent authorities of the current State requested to respond quickly:
(ii) after receiving the request within 60 days, the request is received by the applicant State's competent authority shall notify in writing and, if applicable, must indicate a lack of demand.
(Ii) the competent authorities of the current state in the request, the requested include reasons such as difficulty with confrontation or concerned refuses to provide the information in the provision of information, the demand can not obtain the required information within 90 days from the day it reaches and is not able to provide the applicant State of the refusal or not The reasons and faced by explaining the nature of the challenges will be informed immediately.

5. a) the competent authority of a Contracting State in the other Contracting State representatives, the first-mentioned State territory with written permission from the person concerned to inquire into the real person and can allow to examine the records. Said second State, the competent authority of the first-mentioned State shall inform about the time of the interviews with real people and place.
B) a Contracting State at the request of the competent authority of the other Contracting State of the competent authority of the first-mentioned State to the representatives of the authorities of the aforementioned second State of tax investigations may allow to be present in part as appropriate. If
c) (b) accepted claims referred to in subparagraph investigation conducted by the Contracting States to the competent authorities, review the location and time to carry out the inspection authority or officer and the review by the first-mentioned State deemed necessary for carrying out the procedures and conditions as expeditious a manner as possible shall notify the competent authority of the other State. All decisions regarding the tax inspection, investigation will be conducted by the State.
6. a) Request made by the State in the administration of the applicant State's own tax legislation and implementation in order to obtain information without possibility of obtaining or according to their own law is not necessary for the grant. The competent authorities of the current state of demand, may refuse a request for assistance made in accordance with this Article.
B) The provisions of this Article, a Contracting State, commercial, industrial or professional secret or trade process of providing information that is the explanation does not get under the obligations. Without wishing to be bound by the foregoing, pursuant to paragraph 4 (d) information of the kind referred to in subparagraph only to comply with the criteria specified in this paragraph, it can not be regarded as secret or trade process.
C) The provisions of this Article, a Contracting State, customer lawyers, confidential communications between davavekil or legal representative of this communication;
(Ii) to receive or provide legal consultancy services,
(ii) use in existing or ongoing legal proceedings, provided that they are established
can be forced to obtain or supply.
D) disclosure of such information is contrary to public order, the requested State may refuse the request for information.
E) An information request on the grounds of the disputed tax, which will be the subject of the request will not be rejected.
F) If the information by the applicant State, in their own tax laws and requesting the State compared to the citizen in the same circumstances, the applicant is a state citizen against a provision that led to a separation or the implementation of a regulation about it or have been requested for the execution, the requested State it can refuse this request.

7. Taken under this Article by a Contracting State to any information confidential, and to only assessment or collection or forced the tax specified in this Agreement or the enforcement or litigation deal with complaints and appeals in this matter the person in charge or to the authorities (including courts and administrative bodies) can be given. Such persons or authorities, this information may be used only for the purposes mentioned. These persons or authorities may disclose the information in public court proceedings or in judicial decisions. Information, without the express written permission of the competent authority of the request made by the State, any other one person, organization or authority or official explained.
8. how to share expenses due to the assistance provided shall be agreed between the Contracting States. Article 26 of tax avoidance


PREVENTION MEASURES 1. The income arising in a Contracting State, a person who is a resident of the other Contracting State (other than natural persons) to obtain by non-resident of the other Contracting State and the person or persons;
A) directly or indirectly, no matter where or resident, through one or more persons, partnership or otherwise if there is a significant benefit from this person;
or b) the person directly or indirectly, alone or together to manage or to control, tax exemptions or offering discounts of 10, 11 and Article 12 shall not apply.
2. A significant benefit, the company has essentially held will be available in cases where at least 25% of the capital will be accepted. DIPLOMATIC MISSIONS Nothing in Article 27 of



and consular officers provisions of this Agreement, the officers in the diplomatic and under the general rules of international law or the provisions of special agreements will affect the fiscal privileges of consular officers.
V.
SECTION FINAL PROVISIONS Article 28


ENFORCEMENT into each Contracting State for the entry into force of this Agreement, the completion of the procedures required by its domestic legislation will be reported to the other through diplomatic channels. This Agreement, on the date of the later of these notifications will enter into force and the provisions of the first day of January next following the year in which the Agreement enters into force or later shall take effect for annual tax for each tax period. Article 29


Termination of this Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement by giving notice of termination through diplomatic channels at least six months before the end of the entry into force of the Agreement from the date of the end of any calendar year following a period of five years. In such event, the year following the date of the notice of January 1st day or later will express provision for taxes with respect to every taxable year beginning.
IN WITNESS WHEREOF the undersigned, duly authorized representatives, the undersigned have signed this Agreement.

Turkey, in duplicate in the Arabic and English languages, all three texts being equally authentic, held in Manama on 14 November 2005. In case of differences between the texts, the English text shall prevail. .

REPUBLIC OF TURKEY AND THE KINGDOM OF BAHRAIN
GOVERNMENT OF THE GOVERNMENT OF THE

Kursat Tuzmen Shaikh Ahmed bin Mohammed Al Khalifa,
Minister of State Minister