AGREEMENT BETWEEN THE REPUBLIC OF TURKEY AND THE SOCIALIST REPUBLIC OF ROMANIA FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND CAPITAL

The Government of the Republic of Turkey and the Government of the Socialist Republic of Romania, desiring to conclude an Agreement for the avoidance of double taxation with respect to taxes on income and capital and with a view to promote and strengthen economic relations between the two countries, 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 each Contracting State or of its administrative territorial units 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 Republic of Turkey: i) Income tax; ii) Corporation tax; iii) The fund for the support of defence industry (hereinafter referred to as “Turkish tax”). b) In the case of the Socialist Republic of Romania: i) The tax on income derived by individuals and corporate bodies; ii) The tax on the profits of joint companies constituted with the participation of some Romanian economic organizations and some foreign partners; iii) The tax on income realized from agricultural activities (hereinafter referred to as “Romanian tax”).

4. The Agreement shall also apply to any identical or substantially similar taxes which are subsequently imposed 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 made in their respective taxation laws covered by this Agreement.

Article 3: General Definitions

1. In this Agreement, unless the context otherwise requires: a) i) The term “Turkey” means the Republic of Turkey and when used in a geographical sense means the territory of Turkey in which the laws of Turkey are in force, as well as the continental shelf over which Turkey has, in accordance with international law, sovereign rights to explore and exploit its natural resources; ii) The term “Romania” means the Socialist Republic of Romania and when used in a geographical sense means the territory of Romania, the continental shelf, and an area beyond the territorial sea of Romania within which Romania may, on the basis of internal law and in accordance with international law, exercise sovereign rights to exploration and exploitation of natural, biological, and mineral resources existing in the seawaters, sea-bed, and its subsoil. b) The terms “Contracting State” and “the other Contracting State” mean Turkey and Romania as the context requires. c) The term “tax” means Turkish tax or Romanian tax, as the context requires, and also includes 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 treated as a body corporate for tax purposes, and also includes joint companies incorporated under the legislations of the Contracting States. f) The term “Registered Office” means the legal head office registered under the Turkish Code of Commerce or under Romanian law. g) The term “nationals” means: i) In respect of Turkey, any individual possessing Turkish nationality under the “Turkish Nationality Code” and any legal person, partnership, and association deriving its status as such from the law in force in Turkey. ii) In respect of Romania, any individual possessing Romanian citizenship and any legal person, partnership, and association deriving its status as such from the law in force in Romania. 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”: i) In Turkey, the Minister of Finance and Customs, or his authorized representative. ii) In Romania, the Minister of Finance or his authorized representative. j) The term “beneficial owner” means a resident of a Contracting State or of the other Contracting State. This term shall not include a resident of a third state, and such a resident shall not be allowed to benefit from the provisions of this Agreement.

2. As regards the application of the provisions of this Agreement by one of the Contracting States, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of this Agreement.

Article 4: Fiscal Domicile

1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the law of that State, is liable to tax therein, by reason of his domicile, residence, legal head office (Registered Office), place of effective 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 in accordance with the following rules: a) He shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests). b) If the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting 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 Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national. d) If he is a national of both Contracting 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 company is a resident of both Contracting States, the competent authorities of the Contracting States shall settle the question by mutual agreement in accordance with Article X.

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” shall especially include: a) A place of management; b) A branch; c) An office; d) A factory; e) A workshop; f) A mine, oil or gas well, quarry, or any other place of extraction of natural resources; g) A building site, construction, assembly, or installation project, but only if such site or project continues for a period of more than six months; h) The furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any twelve-month period.

3. The Contracting States are free to apply withholding tax on gross receipts or to operate taxation on net income according to their internal legislation.

4. 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, display, or delivery 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, display, or delivery; 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 any combination of activities mentioned in subparagraphs a) to d), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, the term “permanent establishment” shall be deemed not to include the sale of goods or merchandise belonging to the enterprise displayed in the framework of an occasional temporary fair or exhibition solely at such a fair or exhibition.

6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent, or any other agent of independent status, provided that such persons are acting in the ordinary course of their business.

7. 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 from immovable property (including income from agriculture or forestry) may be taxed in the Contracting State in which such property is situated.

2. The term “immovable property” shall be defined in accordance with the law of the Contracting State in which the property in question is situated. It includes property accessory to immovable property, livestock and equipment used in agriculture and forestry, 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 are not 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 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 directly or indirectly attributable to that permanent establishment.

2. The profits arising from transactions in which the permanent establishment has been involved should be regarded as attributable to the permanent establishment to the extent appropriate to the part played by the permanent establishment in these transactions. This attribution applies even if the contract or order related to the purchase or provision of goods or services is placed directly with the overseas head office rather than the permanent establishment.

3. In determining the profits of a permanent establishment, deductions shall be allowed for expenses incurred for the purposes of the permanent establishment, including executive and general administrative expenses, whether incurred in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of contributions to the expenses and losses of the enterprise itself or other permanent establishments situated abroad, other than reimbursement of actual expenses.

4. No profits shall be attributed to a permanent establishment solely by reason of the purchase of goods or merchandise for the enterprise.

5. Where profits include items of income dealt with separately in other Articles of this Agreement, those provisions shall not be affected by Article 7.

6. Profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may, after being taxed under this Article, be taxed on the remaining amount in the State in which the permanent establishment is situated, in accordance with the taxation law of that State, provided that the tax shall not exceed 15 percent.

7. Notwithstanding the preceding provisions, a payment made to a broker, general commission agent, or a similar person may be taxed in the State where the payment arises, but the tax shall not exceed 6 percent of the gross amount of the commission, unless the beneficial owner of the commission, being a resident of the other Contracting State, has a permanent establishment with which the activity giving rise to the commission is effectively connected.

Article 8: Transport Enterprises

1. 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.

2. “International traffic” means any transport by a ship, aircraft, or road vehicle by a Turkish or Romanian enterprise, except when the ship, aircraft, or road vehicle operates solely between places within the territory of Turkey or Romania.

3. The provisions of paragraph 1 also apply to profits derived from participation in a pool, joint business, or international operating agency.

Article 9: Associated Enterprises

1. Where 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 where the same persons participate in the management, control, or capital of enterprises of both Contracting States, and conditions are made or imposed between the enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any resulting profits may be included in the profits of the enterprise and taxed accordingly.

2. Where one Contracting State includes in the profits of an enterprise profits that have been taxed in the other Contracting State and taxes them accordingly, the other State shall make an appropriate adjustment to the amount of tax charged on those profits, where it considers the adjustment justified. Such adjustments shall take into account the provisions of this Agreement, and the competent authorities of the Contracting States shall consult each other if necessary.

Article 10: Dividends

1. Dividends paid by a company resident in 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 the company paying the dividends, according to its laws, but if the recipient is the beneficial owner of the dividends, the tax shall not exceed 15 percent of the gross amount of the dividends.

3. “Dividends” include income from shares, “jouissance” shares or rights, founders’ shares or other rights participating in profits, income from corporate rights subjected to the same treatment as income from shares under the laws of the State where the company making the distribution resides, and income from investment funds and investment trusts. Profits distributed by Romanian joint companies to capital subscribers are considered dividends in this context.

4. Subject to the provisions of Article 7, no tax shall be imposed in the Contracting State on dividends paid by a company resident in one Contracting State to a company resident in the other Contracting State, except when the recipient is a resident of the State or the holding is effectively connected with a permanent establishment or fixed base in that State.

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 through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such a case, the provisions of Article 7 shall apply.

Article 11: Interest

1. Interest 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 in which it arises, according to its laws, but if the recipient is the beneficial owner of the interest, the tax shall not exceed 10 percent of the gross amount of the interest.

3. Notwithstanding paragraph 2: a) Interest arising in Romania and paid to the Government of Turkey or to the Central Bank of Turkey shall be exempt from Romanian tax. b) Interest arising in Turkey and paid to the Government of Romania or to the National Bank of the Socialist Republic of Romania shall be exempt from Turkish tax.

4. “Interest” includes income from government securities, bonds or debentures, whether secured by mortgage or not, with or without the right to participate in profits, debt claims of every kind, penalty charges for late payment, and all other income treated as income from money lent under the taxation laws of the State where the income arises.

5. 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 where the interest arises through a permanent establishment there, and the debt claim giving rise to the interest is effectively connected with such permanent establishment. In such cases, Article 7 shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, an administrative territorial unit, a local authority, or 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 connected with which the debt giving rise to the interest was incurred, and the interest is borne by that permanent establishment, then the interest shall be deemed to arise in the Contracting State where the permanent establishment is situated.

7. If due to a special relationship between the payer and the beneficial owner, or between them and another person, the amount of interest exceeds the amount agreed upon in the absence of such a relationship, this Article applies only to the agreed amount. The excess part remains taxable according to the laws of each Contracting State, considering the other provisions of this Agreement.

8. If a resident of a Contracting State sells goods or merchandise to a resident of the other Contracting State and payments are made within a specified period after delivery, such payments shall not be regarded as interest for the purposes of this Article. In such cases, the provisions of Articles 5 and 7 shall apply.

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, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 percent of the gross amount of the royalties.

3. “Royalties” include payments received as consideration for the use of, or the right to use, or the sale of any copyright of literary, artistic, or scientific work, including cinematograph films and recordings for radio and television, any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial, or scientific experience, or for the use of, or the right to use, industrial, commercial, or scientific equipment.

4. Paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State where the royalties arise through a permanent establishment there, and the right or property giving rise to the royalties is effectively connected with such permanent establishment. In such cases, Article 7 shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, an administrative territorial unit, a local authority, or 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 connected with which the right or property giving rise to the royalties is effectively connected, and the royalties are borne by that permanent establishment, then the royalties shall be deemed to arise in the Contracting State where the permanent establishment is situated.

6. If due to a special relationship between the payer and the beneficial owner, or between them and another person, the amount of royalties exceeds the amount agreed upon in the absence of such a relationship, this Article applies only to the agreed amount. The excess part remains taxable according to the laws of each Contracting State, considering the other provisions of this 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 of 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, including such 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 the other State. However, gains of an enterprise of a Contracting State from the alienation of ships, aircraft, or road vehicles operated in international traffic and movable property pertaining to the operation of such ships, aircraft, or road vehicles, shall be taxable only in that State.

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

Article 14
INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if: a) he has a fixed base regularly available to him in that other State for the purpose of performing those services or activities; or b) he is present in that other State for the purpose of performing those services or activities for a period or periods amounting in the aggregate to 183 days or more in any continuous period of 12 months.

In such circumstances, only so much of the income as is attributable to that fixed base or is derived from the services or activities performed during his presence in that other State, as the case may be, may be taxed in that other State.

2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants, and other activities requiring specific professional skill.

Article 15
DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20, and 21, salaries, wages, and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an 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 the aggregate 183 days in the calendar year concerned, and b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

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

Article 16
DIRECTORS’ FEES

Directors’ fees and other 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 ATHLETES

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14, and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised.

3. However, income derived by a resident of a Contracting State from activities as such exercised in the other Contracting State shall be exempt from tax in the other State if the activities are performed under a cultural agreement or any other arrangement between the Contracting States.

Article 18
PENSIONS

Subject to the provisions of paragraph 1 of Article 19, 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 shall also apply to life annuities paid to a resident of a Contracting State.

Article 19
GOVERNMENT SERVICE

1. Remuneration, including pensions, paid by, or out of funds created by, a Contracting State, an administrative territorial unit or a local authority thereof to any individual in respect of services rendered to that State or unit 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 an administrative territorial unit or a local authority thereof.

Article 20
STUDENTS

1. Payments which a student or business apprentice who is a national of a Contracting State and who is present in the other Contracting State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that other State for a period not exceeding six years, provided that such payments arise from sources outside that other State.

2. Remuneration which a student or a trainee who is a national of a Contracting State derives from an employment which he exercises in the other Contracting State for a period or periods not exceeding 183 days in a calendar year, in order to obtain practical experience related to his education or formation, shall not be taxed in that other State.

Article 21
TEACHERS

1. Remuneration received by a teacher or by an instructor who is a national of a Contracting State and who is present in the other Contracting State for the primary purpose of teaching or engaging in scientific research for a period or periods not exceeding two years shall be exempt from tax in that other State on his remuneration from personal services for teaching or research, provided that such payments arise from sources outside that other State.

2. The provisions of paragraph 1 shall not apply to income from research, if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.

Article 22
OTHER INCOME

Items of income arising from a Contracting State, which are not expressly mentioned in the foregoing Articles of this Agreement, may be taxed in that State.

Article 23
CAPITAL

1. Capital represented by immovable property referred to in Article 6, 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, or road vehicles operated in international traffic and by movable property pertaining to the operation of such ships, aircraft, or road vehicles shall be taxable only in the Contracting State of which the enterprise is a resident.

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

Article 24
ELIMINATION OF DOUBLE TAXATION

Double taxation shall be avoided as follows:

1. In the case of Romania, taxes paid in Turkey by Romanian residents on income derived or capital owned which, in accordance with the provisions of this Agreement, may be taxed in Turkey, shall be deducted from taxes owed to the Romanian State. Such deduction shall not, however, exceed that part of the tax computed in Romania before the deduction is given, which is attributable to the income which may be taxed in Turkey.

2. In the case of Turkey, where a resident of Turkey derives income which, in accordance with the provisions of this Agreement, may be taxed in Romania, Turkey shall, subject to the provisions of Turkish taxation laws regarding credit for foreign taxes (which shall not affect the general principles of this Agreement), allow as a deduction from the tax on income of that person, an amount equal to the tax on income paid in Romania. Such deduction shall not, however, exceed that part of the income tax computed in Turkey before the deduction is given, which is appropriate to the income which may be taxed in Romania.

Article 25
NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.

2. Subject to the provisions of paragraph 6 of Article 7, the taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.

3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

4. These provisions shall not be construed as: a) obliging a Contracting State to grant to residents of the other Contracting state any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents; b) a discrimination if a Contracting State limits the application of some reliefs, allowances and exemptions conceived for the purposes of encouragement of investments for persons of the other Contracting State.

Article 26
EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for the carrying out of the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement, insofar as 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 the domestic laws of that State and shall be disclosed only to persons or authorities, including courts and administrative bodies involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement. Such persons or authorities shall use the information only for such purposes.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: a) to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).

Article 27
ADMINISTRATIVE ASSISTANCE

1. The Contracting States engage to provide aid and assistance mutually for the purpose of notification and collection in principle, increment additions, interests, expenses and fines without penal character, taxes covered by the Article 2.

2. On the request of the competent authority of a Contracting State, the competent authority of the other Contracting State will ensure, according to the provisions of laws and regulations applied to notification and collection of the above-mentioned taxes in the last State, notification and collection of fiscal claims covered by the first paragraph, which are recoverable in the first State. These claims shall not enjoy any privilege in the requestee State and the latter is not obliged to apply means of execution which are not authorized by the provisions of laws and regulations of the requesting State.

3. Requests covered by paragraph 2, shall be supported by an official copy of executory documents, accompanied, when needed, by an official copy of judgments passed as res judicata.

4. With respect to fiscal claims susceptible to appeal, the competent authority of a Contracting State could, for the safeguard of its rights, request the competent authority of the other Contracting State, to take measures of conservation as prescribed in the legislation of the latter State; provisions of paragraphs 1 to 3 could be applied, mutatis, to these measures.

5. The provisions of Article 26, paragraph 1, shall apply equally to all information brought, for the application of preceding paragraphs of the present Article, to the knowledge of the competent authority of the requestee State.

6. The nationals of a Contracting State exercising dependent activities in the other Contracting State, may seek the assistance of the envoys sent by an authorized agency of their State of origin to the other Contracting State in resolving tax disputes. The authorities and responsibilities of these agencies and envoys are determined in accordance with the provisions which govern the authorities and responsibilities of similar agencies and envoys of the other Contracting State.

Article 28
MUTUAL AGREEMENT PROCEDURE

1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, irrespective of the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Agreement.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.

Article 29
DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of diplomatic or consular officers under the general rules of international law or under the provisions of special agreement.

Article 30
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 effect in Turkey and in Romania for taxes with respect to every taxable year beginning on or after the first day of January of the year following that of the entry into force of the Agreement.

Article 31
TERMINATION

This Agreement shall remain in force until terminated by a Contracting State. After January 1st of the fifth year of the entry into force of this Agreement, either Contracting State may denounce the Agreement through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year. In such event, the Agreement shall cease to have effect in Turkey and in Romania for taxes with respect to every taxable year beginning on or after the first day of January of the year following that in which the notice of termination is given.

IN WITNESS WHEREOF, the undersigned plenipotentiaries have signed the present Agreement,

Done in duplicate at Bucharest on 1st July 1986, in two original copies each in the Turkish, Romanian, and English languages, the three texts being equally authentic. In case of any divergence of interpretation of the provisions of this Agreement, the English text shall prevail.