This Agreement shall apply to persons who are residents of one or both of the Contracting States. 

1) This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or its Laender 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 amount 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: aa. Income Tax (Gelir vergisi); bb. Corporation Tax (Kurmular vergisi), (hereinafter referred to as "Turkish tax"); 
b) in the case of the Federal Republic of Germany: aa. Income Tax (Einkommensteuer); bb. Corporation Tax (Korperschaftsteur); cc. Capital Tax (Vermogensteuer); dd. Business Tax (Gewerbesteuer), (hereinafter referred to as "German tax"). 

1) In this Agreement, unless the context otherwise requires: 

a) the terms "a Contracting State" and "the other Contracting State" mean the Republic of Turkey or the Federal Republic of Germany as the context requires, and if for the purpose of this Agreement used in a geographical sense the area in which the national laws of the Contracting States are in force, as well as their continental shelves over the Contracting State concerned exercises, in accordance with international law, sovereign rights, for the purpose of exploring it and exploiting its natural resources; 
b) the term ''tax" means any tax covered by Article 2 of this Agreement; 
c) the term ''person'' means: aa. any individual; bb. any company;
d) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;
e) the term "legal head office", means the statutory seat (Kanuni merkez, Sitz) within the meaning of the Turkish Code of Commerce, or within the meaning of the German Fiscal Code, respectively;
f) the term "national" means: aa. in respect of the Republic of Turkey, all individuals possessing the Turkish nationality from the "Turkish Nationality Code", and all legal persons, partnerships and associations deriving their status as such from the law in force in the Republic of Turkey; bb. in respect of the Federal Republic of Germany, all Germans covered by paragraph 1 of Article 116 of the Basic Law for the Federal Republic of Germany, and any legal person, partnership and association deriving its status as such from the law in force in the Federal Republic of Germany;
g) 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. 
h) the term "competent authority" means: aa. in the Republic of Turkey, the Minister of Finance and Customs; bb. in the Federal Republic of Germany, the Federal Minister of Finance. 

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 taxation therein, by reason of his domicile, residence, legal head office, place of management or any other criterion of a similar nature. 

2) Where by reason of the provisions in 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 thc 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. 

1) For the purposes of this Agreement, the term "permanent establishment" means in which the business of the enterprise is wholly or partly carried on.

2) The term "permanent establishment" shall include 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 other place of extraction of natural resources;
g) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only if such site, project or activities continue for a period of more than six months.

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 for the enterprise;
e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, 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.

a) has and habitually exercises in that State an authority to conclude contracts in the name of 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; or
b) has no such authority, but habitually maintains in the first mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise.

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 State.

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. 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 1shall 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. 

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) 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 which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether 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.

1) Profits of an enterprise of a Contracting State derived from the other Contracting State from the operation of ships, aircraft or road vehicles in international traffic may be taxed only in the first mentioned State.

2) The expression "international traffic" means any transport by a ship or an aircraft or a road vehicle by a Turkish or German enterprise, except when the ship or the aircraft of the road vehicle is operated solely between places situated in the territory of the Republic of Turkey or of the Federal Republic of Germany.

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 or 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. 

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 be taxed in the Contracting State of which the company paying dividends is a resident, in accordance with the laws of that State, but the taxes charged shall not exceed: 

a) 15 per cent of the gross amount of the dividends if the recipient is a company (excluding partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends;
b) in all other cases, 20 per cent of the gross amount of the dividends. 

3) The term "dividends" as used in this Article means: 

a) dividends on shares including income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, and 
b) other income 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. and for the purpose of taxation in the Contracting State income derived by a sleeping partner ("stiller Gesellschafter") from his participation as such and distributions on certificates of an investment fund or investment trust. 

5) Notwithstanding paragraph 2, income derived from rights or debt-claims participating in profits (including in the Federal Republic of Germany income of a sleeping partner ("stiller Gesellschsfter") from his participation as such or from a "partiarisches Darlehen" or "Gewinnobligationen") that is deductible in determining the profits of the debtor may be taxed in the Contracting State in which it arises according to the laws of that State. 

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 be taxed in the Contracting State in which it arises, and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the interest. 

3) Notwithstanding the provisions of paragraph 2, interest arising in: 

a) the Federal Republic of Germany and paid to the Government of the Republic of Turkey or to the Central Bank of Turkey (Turkiye Cumhuriyet Merkez Bankasi) shall be exempt from German tax; 
b) The Republic of Turkey and paid to the Government of the Federal Republic of Germany or to one of its Laender or to the "Deutsche Bundesbank" or to the "Kreditanstalt fuer Wiederaofbau" shall be exempt from Turkish tax. 

5) The provisions of paragraphs 1 and 2 shall not apply if the recipient 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 therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such cases, 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 Land (laender), 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, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, 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 recipient in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement. 

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 be taxed in the Contracting State in which they arise, and according to the law of that State; but the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. 

3) The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, or for the sale of, any copyright of literary. artistic or scientific work including cinematograph films and recordings for radio and television, any patent, trade mark, 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) The provisions of paragraphs 1 and 2 shall not apply if the recipient of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which royalties arise, through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such cases the provisions of Article 7 shall apply. 

5) Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a Land, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment with which the right or property in respect of which the royalties are paid is effectively connected, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 

6) Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement.

1) Gains from the alienation of immovable property as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated. 

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 immovable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State. 

3) Gains from the alienation of any property other than those mentioned in paragraphs 1 and 2 shall be taxable only in the 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. 

1) Income derived by a resident of a Contracting State in respect of professional services shall be taxable only in that State unless such activities are exercised in the other Contracting State. If the activities are exercised in the other State, income derived therefrom may be taxed in the other State.

2) Notwithstanding the provision of paragraph 1, income derived by a resident of a Contracting State in respect of professional services 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, a person who is not a resident of the other Contracting State; and 
c) the remuneration is not borne by a permanent establishment or a fixed base which such a person has in the other State.

a) the recipient is present in the Republic of Turkey for a period or periods exceeding in the aggregate 183 days in the calendar year concerned; or 
b) the remuneration is borne by a permanent establishment or a fixed base which a person who is not a resident of the Republic of Turkey has in the Republic of Turkey. 

5) 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, accountants and other activities requiring specific professional skill.

1) Subject to the provisions of Articles 16, 18, 19 and 20 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 fiscal 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. 

1) 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. 

2) Salaries, wages and other similar remuneration derived by one or more residents of a Contracting State in their capacity as officials responsible under Commercial law for the overall direction of the affairs of the company which is a resident of the other Contracting State may be taxed in that other State.

1) Notwithstanding the provisions of Articles 14 and 15, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their independent activities as such may be taxed in the Contracting State in which these activities are exercised.

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, such income shall not be taxed in the State which is mentioned in the first paragraph of this Article if the underlying activities are exercised during a visit to that State by a resident of the other Contracting State and where such visit is financed directly or indirectly by that other State, one of its Laender or its political subdivisions, or by an organization which in that other State is recognized as a charitable organization. 

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 shall also apply to life annuities paid to a resident of a Contracting State. 

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

1) Subject to the provisions of Article 1, remuneration, including pensions, paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to any individual in respect of services rendered to that State or political subdivision or local authority thereof in the discharge of functions of a governmental nature may be taxed 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 any trade or business carried on by one of the Contracting States or a political subdivision or a local authority thereof. 

1) Payments which a student or business apprentice who is a national of a Contracting State and who, resides temporarily 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, provided that such payments are made to him from sources outside that other State. 

2) Likewise, remuneration which a professor or a teacher who is a national of a Contracting State and who resides temporarily in the other Contracting State for a period or periods not exceeding two years, engaging in teaching or in scientific research, receives for his personal services in respect of such teaching or research shall be exempted from tax in that other State, provided that such payments are received from sources outside that other State.

3) 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. 

1) 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.

2) Items of income arising outside the two Contracting States shall be taxable only in the Contracting State of which the person receiving the income in question is a resident.

1) Capital represented by immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.

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.

3) Ships, aircraft or road vehicles operated in international traffic by an enterprise of a Contracting State and movable property pertaining to the operation of such ships, aircraft and road vehicles shall be taxable only in the Contracting State in which the legal head 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.

1) Double taxation for the resident of the Federal Republic of Germany shall be eliminated as follows:

a) Subject to the provisions of subparagraph (b), there shall be excluded from the basis upon which German tax is imposed, any item of income from sources within the Republic of Turkey and any item of capital situated within the Republic of Turkey, which according to the foregoing Articles of this Agreement may be taxed, or shall be taxable only, in the Republic of Turkey; in the determination of its rate of tax applicable to any item of income or capital not so excluded, the Federal Republic of Germany may, however, take into account the items of income and capital, which according to the foregoing Articles may be taxed in the Republic of Turkey. In the case of income from dividends the foregoing provisions of this subparagraph shall apply only to such dividends as are paid to a company being a resident of the Federal Republic of Germany by a company being a resident of the Republic of Turkey at least 10 percent of the voting shares of which are owned by the first mentioned company. There shall also be excluded from the basis upon which German tax is imposed any shareholding, the distribution on which, if paid, would according to the foregoing sentence be excluded from the basis upon which German tax is imposed. 
b) Subject to the provisions of German tax law regarding credit for foreign tax, there shall be allowed as a credit against German income and corporation tax payable in respect of the following items of income derived from the Republic of Turkey and Turkish tax paid under the laws of the Republic of Turkey and in accordance with this Agreement on: aa. Dividends within the meaning of Article 10 to which subparagraph (a) does not apply; bb. interest within the meaning of Article 11 and royalties within the meaning of Article 12; cc. gains from the alienation of property taxable in the Republic of Turkey, by reason of paragraph (3) of Article 13; dd. income taxable in the Republic of Turkey by reason of Article 14; ee. payments mentioned in paragraph (1) of Article 19 paid to a national of the Federal Republic of Germany; ff. income within the meaning of paragraph (3) of Article 15 and Articles 16, 17, 18 and paragraph (1) of Article 21. The credit shall not, however, exceed that part of the German tax, as computed before the credit is given, which is appropriate to such items of income. 
c) Where a company which is a resident of the Federal Republic of Germany distributes income derived from sources within the Republic of Turkey subparagraph (a) shall not preclude the compensatory imposition of corporation tax on such distributions in accordance with the provisions of the tax law of the Federal Republic of Germany. 
d) Where dividends, interest and royalties mentioned in subparagraph (b) are taxed under special measures introduced in Turkish law for the purpose of promoting the economic development of the Republic of Turkey, at rates of tax which are reduced below 10 percent, there shall under the conditions provided in subparagraph (b) be allowed as a deduction from the tax paid in the Federal Republic of Germany on such income an amount equal to at least 10 percent of the gross amount of such income. However, the deduction shall not exceed the tax paid in the Republic of Turkey in the absence of such measures. 

a) Subject to the provisions of subparagraph (b), there shall be excluded from the basis upon which Turkish tax is imposed, any item of income from sources within the Federal Republic of Germany and any item of capital situated within the Federal Republic of Germany, which according to the foregoing Articles of this Agreement may be taxed, or shall be taxable only, in the Federal Republic of Germany; in the determination of its rate of tax applicable to any item of income or capital not so excluded, the Republic of Turkey may, however, take into account the items of income and capital. which according to the foregoing Articles may be taxed in the Federal Republic of Germany. In the case of income from dividends the foregoing provisions of this subparagraph shall apply only to such dividends as are paid to a company being a resident of the Republic of Turkey by a company being a resident of the Federal Republic of Germany at least 10 percent of the voting shares of which are owned by the first mentioned company. 
b) Subject to the provisions of Turkish tax law regarding credit for foreign tax, there shall be allowed as a credit against Turkish income and corporation tax payable in respect of the following items of income derived from the Federal Republic of Germany the German tax paid under the laws of the Federal Republic of Germany and in accordance with this Agreement on: aa. dividends within the meaning of Article 10 to which subparagraph (a) does not apply; bb. interest within the meaning of Article 11 and royalties within the meaning of Article 12; cc. gains from the alienation of property taxable in the Federal Republic of Germany, by reason of paragraph (3) of Article 13; dd. income taxable in the Federal Republic of Germany by reason of Article 14; ee. payments mentioned in paragraph (1) of Article 19 paid to a national of the Republic of Turkey; ff. income within the meaning of paragraph (3) of Article 15 and Articles 16. 17, 18 and paragraph (1) of Article 21. The credit shall not, however, exceed that part of the Turkish tax, as computed before the credit is given, which is appropriate to such items of income. c) Where a company which is a resident of the Republic of Turkey distributes income derived from sources within the Federal Republic of Germany subparagraph (a) shall not preclude the compensatory imposition of corporation tax on such distributions in accordance with the provisions of the tax law of the Republic of Turkey. 
d) Where dividends, interest and royalties mentioned in subparagraph (b) are taxed under special measures introduced in German law for the purpose of promoting the economic development of the Federal Republic of Germany, at rates of tax which are reduced below 10 percent, there shall under the conditions provided in subparagraph (b) be allowed as a deduction from the tax paid in the Republic of Turkey on such income an amount equal to at least 10 percent of the gross amount of such income. However, the deduction shall not exceed the tax paid in the Federal Republic of Germany in the absence of such measures. 

1) The 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) 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 Contracting 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 that first mentioned State are or may be subjected. 

4) The provisions of this Article shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and deduction for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 

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, notwithstanding 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 an appropriate 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. In particular, the competent authorities of the Contracting States may consult together to endeavour to agree: 

a) to the same attribution of industrial or commercial profits to an enterprise of one of the Contracting States and to its permanent establishment situated in the other State; 
b) to the same allocation of profits between related enterprises as provided in Article 9; or 
c) to the same determination of the sources of particular items of income.

1) The competent authorities of the Contracting States shall exchange such information as is necessary for the carrying out of this Agreement and of the domestic laws of the Contracting States concerning taxes covered by this Agreement insofar as the taxation thereunder is in accordance with this Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to the public and any persons or authorities other than those concerned with the assessment or collection of taxes which are the subject of the Agreement, and with related complaints and resources as well as to judiciary authorities for penal prosecutions related with the above mentioned taxes. 

2) In no case shall the provisions of paragraph 1 be construed so as to impose on one of the Contracting States the obligation: 

a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State; 
b) to supply particulars which are 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. 

5) The nationals of a Contracting State performing dependent personal activities in the other Contracting State may, in solving their taxation matters, seek the assistance of officials sent by an authorised agency of their State of origin to the other Contracting State; the authority and responsibilities of these agencies and officials shall be determined in accordance with the legal provisions of the other Contracting State. If the activities concerned are subject to official licensing in the other Contracting State, they may only be performed in co-operation with persons or authorities authorised under the laws of the other Contracting State to perform such activities. 

Nothing in this Agreement shall affect the fiscal privileges of members of a diplomatic mission, a consular post or an international organisation under the general rules of international law or under the provisions of special agreements. 

This Agreement shall also apply to Land Berlin, provided that the Government of the Federal Republic of Germany does not make a contrary declaration to the Government of the Republic of Turkey within three months of the date of entry into force of this Agreement. 

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

2) The Agreement shall enter into force one month after the exchange of instruments of ratification and its provisions shall have effect: 

a) in the Republic of Turkey, for taxes with respect to every taxable year beginning on or after the first day of January of the year following that of entry into force of the Agreement; 
b) in the Federal Republic of Germany, for taxes with respect to every taxable year beginning on or after the first day of January of the year following that of entry into force of the Agreement. 

a) shall have effect for the taxes based on income derived after 1 January 1983, and 
b) shall apply to the payment of taxes not yet collected, based on income derived up to 1 January 1983.

1) This Agreement shall remain in force for an unlimited period. 

2) After the first day of January of the third year of the ratification of this Agreement, either Contracting State may denounce the Agreement through diplomatic channels, by giving notice of termination at least in the first six months of any calendar year. In such event the Agreement shall cease to have effect: 

a) in the Republic of Turkey, 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; 
b) in the Federal Republic of Germany, 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. 

1. With reference to Article 5, paragraphs 4 and 5 

It is understood that an otherwise independent agent does not lose his independent status by the mere fact that he holds a stock of goods or merchandise from which he delivers goods or merchandise on behalf of an enterprise under conditions customary between independent enterprises. 

2. With reference to Article 7, paragraph 1 

It is understood that where an enterprise of a Contracting State has a permanent establishment in the other State and the enterprise -

a) effects sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment, or 
b) carries on other business activities in that other State of the same or similar kind as those effected is that permanent establishment, the sales and the business activities shall be taxed in that other Contracting State as part of the permanent establishment's profits to the extent that such sales or activities have been effected through the permanent establishment; this taxation cannot be excluded by artificial sales arrangements. 

It is understood that -

a) subject to the provisions of paragraph 2 of this Protocol, where an enterprise of a State sells goods or merchandise or carries on business in the other State through a permanent establishment situated herein, the profits of this permanent establishment are not determined on the basis of the total amount received by the enterprise, but are determined only on the basis of the remuneration which is attributable to the actual activity of the permanent establishment for such sales or business; 
b) in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment the profits of such permanent establishment are not determined on the basis of the total amount of thc contract, but are determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the legal office of the enterprise shall be taxable only in the State of which the enterprise is a resident. 

In determining the profits of a permanent establishment there shall not be allowed as deductions payments for interest, royalties, commissions or other similar payments made to the enterprise itself or to other permanent establishments for sharing all or part of thc or expenses of the enterprise itself or of other permanent establishments located abroad. However, the permanent establishment may, in accordance with paragraph 3 of Article 7 of the Agreement, deduct interest, royalties, commissions or other similar payments (including expenses for research and development) incurred for the purposes of the permanent establishment. 

5. With reference to Article 12 

It is understood that remuneration for the exercise of independent services (including the furnishing of services) is not a royalty within the meaning of paragraph 3 Article 12. 

6. With reference to Article 15 

Where workers are hired out by a professional labour lessor as defined in the law of a Contracting State or by a person deemed to be equivalent to such a lessor (intermediary) to an enterprise (real beneficiary), such workers are deemed, for the purpose of the Agreement, as employees of the real beneficiary, but not of the intermediary.