IN THE NAME OF ALLAH

AGREEMENT
BETWEEN THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN
AND
THE GOVERNMENT OF THE REPUBLIC OF TURKEY
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN
AND
THE GOVERNMENT OF THE REPUBLIC OF TURKEY

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital,
HAVE AGREED AS FOLLOWS:

Article 1 – PERSONAL SCOPE
This Agreement shall apply to persons who are residents of one or both of the Contracting States.

Article 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.
2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3. The existing taxes to which the Agreement shall apply are in particular:
   a) in the case of the Islamic Republic of Iran: Income tax subject to Iranian direct taxes law (hereinafter referred to as “the tax of the Islamic Republic of Iran”);
   b) in the case of the Republic of Turkey (hereinafter referred to as “Turkey”):
   (i) the income tax;
   (ii) the corporation tax;
   (iii) the levy imposed on the income tax and the corporation tax (hereinafter referred to as “Turkish tax”).
4. The Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws.

Article 3 – GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires:
   a) (i) the term “Islamic Republic of Iran” means the territory under the sovereignty and/or jurisdiction of the Islamic Republic of Iran;
   (ii) the term “Turkey” means the territory under the sovereignty of the Republic of Turkey.
   b) the terms “a Contracting State” and “the other Contracting State” mean the Islamic Republic of Iran or Turkey as the context requires;
   c) the term “tax” means any tax covered by Article 2 of this Agreement;
   d) the term “person” includes an individual, a company, and any other body of persons;
   e) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;
   f) the term “registered office” means head office registered under the relevant laws of either Contracting State;
   g) the term “national” means:
   i) any individual possessing the nationality of a Contracting State;
   ii) any legal person, partnership, or association deriving its status as such from the laws in force in a Contracting State;
   h) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
   i) the term “competent authority” means:
   (i) in the Islamic Republic of Iran, the Minister of Economic Affairs and Finance or his authorized representative;
   j) the term “international traffic” means any transport by a ship, an aircraft, or a road vehicle operated by an Iranian or a Turkish enterprise, except when the ship, aircraft, or road vehicle is operated solely between places situated in the territory of the Islamic Republic of Iran or Turkey.
2. As regards the application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State concerning the taxes to which the Agreement applies.

Article 4 – RESIDENT

1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, registered office, place of management, or any other criterion of a similar nature.
2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:
   a) He shall be deemed to be a 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, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (center of vital interests);
   b) If the State in which he has his center of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;
   c) If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
   d) If he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3. Where, by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its registered office is situated.

Article 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially:
   a) a place of management;
   b) a branch;
   c) an office;
   d) a factory;
   e) a workshop;
   f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;
   g) a building site, a construction or installation project, but only if such site, project, or activities continue for a period of more than six months.
3. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include:
   a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;
   b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
   c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
   d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information for the enterprise;
   e) the maintenance of a fixed place of business solely for the purpose of carrying on any other activity of a preparatory or auxiliary character;
   f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
4. Notwithstanding the provisions of paragraphs 1 and 2, where a person—other than an agent of an independent status to whom paragraph 5 applies—is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 3, which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
5. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent, or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered as an agent of an independent status within the meaning of this paragraph.
6. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, fishing places of every kind, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property, and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources, and other natural resources; ships, boats, and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Article 7 – BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State, but only so much of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses including executive and general administrative expenses, which would be deductible if the permanent establishment were an independent enterprise, in so far as they are incurred for the purposes of the permanent establishment, whether incurred in the State in which the permanent establishment is situated or elsewhere.
4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
5. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8 – SHIPPING, AIR AND LAND TRANSPORT
Profits derived by an enterprise of a Contracting State from the operation of ships, aircraft, or road vehicles in international traffic shall be taxable only in that State.

Article 9 – ASSOCIATED ENTERPRISES

1. Where:
   a) An enterprise of a Contracting State participates directly or indirectly in the management, control, or capital of an enterprise of the other Contracting State, or
   b) The same persons participate directly or indirectly in the management, control, or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
   and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
2. Where a Contracting State includes in the profits of an enterprise of that State—and taxes accordingly—profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are by the first-mentioned State claimed to be profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits, where that other State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Agreement, and the competent authorities of the Contracting States shall, if necessary, consult each other.

Article 10 – DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed:
   a) 15% of the gross amount of the dividends if the recipient is a company (excluding partnership) which holds directly at least 25% of the capital of the company paying the dividends;
   b) 20% of the gross amount of the dividends in all other cases.
3. The term “dividends” as used in this Article means income from shares, “Jouissance” shares or “Jouissance” rights, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
4. Profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may, after having been taxed under Article 7, be taxed on the remaining amount in the Contracting State in which the permanent establishment is situated and in accordance with sub-paragraph a) of paragraph 2.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
6. Subject to paragraph 4 of Article 10, where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed according to the laws of that State.
2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10% of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest arising in:
   a) The Islamic Republic of Iran and paid to the Government of Turkey or to the Central Bank of Turkey or to the Turkish Eximbank shall be exempt from the tax of the Islamic Republic of Iran.
   b) Turkey and paid to the Government of the Islamic Republic of Iran or to the Central Bank of the Islamic Republic of Iran or to the Export Expansion Bank (Bank Tousee Saderat) shall be exempt from Turkish tax.
4. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds, or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.
6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority, or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

Article 12 – Royalties

1. Royalties 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 royalties may also be taxed in the Contracting State in which they arise, according to its laws. If the recipient is the beneficial owner of the royalties, the tax imposed shall not exceed 10% of the gross amount of the royalties.

3. The term “royalties” in this Article refers to payments received as consideration for the use of, or the right to use:

   • Copyrights of literary, artistic, or scientific works, including cinematograph films and recordings for radio and television.
   • Any patent, trademark, design or model, plan, secret formula or process.
   • Information concerning industrial, commercial, or scientific experience.
   • Industrial, commercial, or scientific equipment.

4. Paragraphs 1 and 2 do not apply if the beneficial owner of the royalties, a resident of a Contracting State, conducts business in the other Contracting State through a permanent establishment there, and the royalties relate to that permanent establishment. In such cases, Article 7 applies.

5. Royalties are considered to arise in a Contracting State if the payer is:

   • The State itself,
   • A political subdivision or local authority of that State,
   • A resident of that State.

   If the payer, whether a resident of a Contracting State or not, has a permanent establishment in a Contracting State and the royalties are attributable to that establishment, the royalties are deemed to arise in the Contracting State where the establishment is situated.

6. If the amount of royalties paid exceeds the amount that would have been agreed upon in the absence of a special relationship between the payer, the beneficial owner, or some other person, then:

   • The provisions of this Article apply only to the agreed amount.
   • The excess amount remains taxable according to the laws of each Contracting State, considering other provisions of the Agreement.

Article 13 – Capital Gains

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property:

   • Forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or
   • Pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services,

   including gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base, may be taxed in that other State.

3. Gains from the alienation of:

   • Ships, aircraft, or road vehicles operated in international traffic, or
   • Movable property pertaining to the operation of such ships, aircraft, or road vehicles,

   shall be taxable only in the Contracting State in which the registered office of the enterprise is situated.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, and 3 shall be taxable in the Contracting State of which the alienator is a resident. However, if the property was situated in the other Contracting State and the time period between its acquisition and alienation does not exceed one year, the gains may be taxable in the other Contracting State.

Article 14 – Independent Personal Services

1. Income derived by a resident of a Contracting State from professional services or other activities of an independent character shall be taxable only in that State unless the individual has a fixed base regularly available to them in the other Contracting State for performing these activities. If such a fixed base exists, the income attributable to that fixed base may be taxed in the other State.

2. “Professional services” include independent scientific, literary, artistic, educational, or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists, and accountants.

Article 15 – Dependent Personal Services

1. Salaries, wages, and other similar remuneration derived by a resident of a Contracting State in respect of employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised in the other State, the remuneration derived therefrom may be taxed in that other State.

2. However, remuneration derived by a resident of a Contracting State from employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a) The recipient is present in the other State for a period or periods not exceeding in aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned, b) The remuneration is paid by or on behalf of an employer who is not a resident of the other State, c) The remuneration is not borne by a permanent establishment or fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic, may be taxed in the Contracting State in which
   the registered office of the enterprise is situated.

Article 16 – Directors’ Fees

Directors’ fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 17 – Artistes and Sportsmen

1. Income derived by a resident of a Contracting State as an entertainer (such as a theater, motion picture, radio or television artist, or a musician) or as a sportsman, from personal activities exercised in the other Contracting State, may be taxed in that other State, notwithstanding the provisions of Articles 14 and 15.

2. Where income in respect of personal activities exercised by an entertainer or a sportsman accrues not to the entertainer or sportsman themselves but to another person, that income may be taxed in the Contracting State where the activities were exercised, despite the provisions of Articles 7, 14, and 15.

3. Paragraphs 1 and 2 shall not apply to income derived from activities performed in a Contracting State by artistes or sportsmen if the visit to that State is wholly or mainly supported by public funds of the other Contracting State or a political subdivision or a local authority thereof.

Article 18 – Pensions

1. Pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. This provision also applies to life annuities paid to a resident of a Contracting State.

2. Pensions, life annuities, and other periodical or occasional payments made by a Contracting State or one of its political subdivisions in respect of insuring personal accidents may be taxed only in this State.

Article 19 – Government Service

1. Remuneration, including pensions, paid by or out of funds created by a Contracting State or a political subdivision or local authority thereof to any individual in respect of services rendered to that State or subdivision or authority thereof in the discharge of functions of a governmental nature shall be taxable in that State.

2. The provisions of Articles 15, 16, and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or local authority thereof.

Article 20 – Teachers and Students

1. Payments received by a student or business apprentice who is a national of a Contracting State and present in the other Contracting State solely for the purpose of education or training shall not be taxed in that other State, provided these payments arise from sources outside that other State.

2. Similarly, remuneration received by a teacher or instructor who is a national of a Contracting State and present in the other Contracting State primarily for teaching or engaging in scientific research for periods not exceeding two years shall be exempt from tax in that other State on their remuneration from personal services for teaching or research, provided such payments arise from sources outside that other State. This exemption does not apply to income from research undertaken primarily for the private benefit of specific persons.

Article 21 – Other Income

Income of a resident of a Contracting State, wherever arising, not addressed in the preceding Articles of this Agreement, shall be taxable only in that State.

Article 22 – Capital

1. Capital represented by immovable property owned by a resident of a Contracting State and situated in the other Contracting State may be taxed in that other State.

2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

3. Capital represented by ships, aircraft, and road vehicles operated in international traffic, and by movable property pertaining to their operation, shall be taxable only in the Contracting State where the registered office of the enterprise is situated.

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

Article 23 – Method for the Elimination of Double Taxation

1. Where a resident of a Contracting State derives income or owns capital which, according to this Agreement, may be taxed in the other Contracting State, the first-mentioned State shall allow: a) A deduction from the tax on the income of that resident, equivalent to the income tax paid in the other State. b) A deduction from the tax on the capital of that resident, equivalent to the capital tax paid in the other State. However, these deductions shall not exceed the amount of income tax or capital tax attributable to the income or capital that may be taxed in the other State, as calculated before the deduction is applied.

2. Even if income or capital derived or owned by a resident of a Contracting State is exempt from tax in that State according to the Agreement, that State may still consider such exempted income or capital in calculating the tax on the remaining income or capital of that resident.

Article 24 – Non-Discrimination

1. Nationals of a Contracting State shall not face in the other Contracting State any taxation or associated requirements that are different or more burdensome than those faced by nationals of that other State in similar circumstances. This provision applies also to individuals who are not residents of either Contracting State, notwithstanding Article 1.

2. Except for the provisions of paragraph 4 of Article 10, the taxation applied to a permanent establishment that an enterprise of a Contracting State has in the other Contracting State shall not be less favorable than the taxation applied to enterprises of that other State conducting the same activities.

3. Enterprises of a Contracting State, whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State, shall not face in the first-mentioned State any taxation or connected requirements that are different or more burdensome than those faced by other similar enterprises of the first-mentioned State.

4. These provisions do not require a Contracting State to grant residents of the other Contracting State any personal allowances, reliefs, or reductions for tax purposes related to civil status or family responsibilities that it grants to its own residents.

Article 25 – Exchange of Information

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or the domestic laws concerning taxes covered by the Agreement, provided that the taxation thereunder is not contrary to the Agreement. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under its domestic laws and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of taxes, enforcement or prosecution related to taxes covered by the Agreement. Such persons or authorities shall use the information solely for these purposes. Information may be disclosed in public court proceedings or judicial decisions.

2. The provisions of paragraph 1 shall not compel a Contracting State to: a) Undertake administrative measures contrary to its laws or administrative practices or those of the other Contracting State; b) Provide information that it cannot obtain under its laws or through its normal administrative practices; c) Disclose information that would reveal any trade, business, industrial, commercial, or professional secret or trade process, or information that would be contrary to public policy (ordre public).

Article 26 – Mutual Agreement Procedure

1. If a resident of a Contracting State believes that actions taken by one or both Contracting States will result in taxation not in accordance with the Agreement, the resident may present the case to the competent authority of the Contracting State of which they are a resident, or if applicable under Article 24(1), to the competent authority of the Contracting State of which they are a national. This presentation must occur within the time period specified by the domestic laws of the Contracting States.

2. The competent authority shall attempt to resolve the case by mutual agreement with the competent authority of the other Contracting State if it deems the objection justified and cannot itself reach a satisfactory solution. The objective is to avoid taxation that does not comply with the Agreement. Any agreement reached shall be implemented within the time period prescribed by the domestic laws of the Contracting States.

3. The competent authorities of the Contracting States shall strive to settle any difficulties or doubts regarding the interpretation or application of the Agreement by mutual agreement. They may also consult each other to eliminate double taxation in cases not covered by the Agreement.

4. The competent authorities may communicate directly with each other to reach an agreement as described in the preceding paragraphs. If deemed beneficial to achieve an agreement, oral discussions may occur through a commission composed of representatives from the competent authorities of the Contracting States.

Article 27 – Members of Diplomatic Missions and Consular Posts

Nothing in this Agreement affects the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under specific agreements.

Article 28 – Entry into Force

1. This Agreement shall be ratified, and the instruments of ratification shall be exchanged as soon as possible.

2. The Agreement shall enter into force upon the exchange of instruments of ratification, and its provisions shall have the following effects: a) For taxes withheld at the source, it applies to income derived on or after January 1st of the calendar year next following the year in which the Agreement enters into force. b) For other taxes on income and capital, it applies to taxes chargeable for any taxable year beginning on or after January 1st of the calendar year next following the year in which the Agreement enters into force.

TERMINATION

This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year following after the period of five years from the date on which the Agreement enters into force. In such event, the Agreement shall cease to have effect:

a) in respect of taxes withheld at source, to amounts of income derived on or after January 1st in the calendar year next following the year in which such notice has been given;

b) in respect of other taxes on income and on capital, to such taxes chargeable for any taxable year beginning on or after January 1st in the calendar year next following the year in which such notice has been given.

In witness whereof, the undersigned, duly authorized thereto, have signed this Agreement.

Done in duplicate in Tehran, on 27/3/1381 Solar Hijra (17/June/2002) in the Persian, Turkish, and English languages, all texts being equally authentic. In the case of any divergence of interpretation, the English text shall prevail.

For the Government of the Islamic Republic of Iran
For the Government of the Republic of Turkey