United Arab Emirates – Turkey Tax Treaty
The United Arab Emirates-Turkey tax treaty caps withholding on dividends at 12% for portfolio investors and 10% for qualifying direct investment, and interest at 10%. Royalties are taxed at a uniform 10% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 21 active treaties in United Arab Emirates's network and one of 37 in Turkey's. The general dividend rate of 12% compares to a median of 10% across United Arab Emirates's network and 15% across Turkey's.
Verified data
Gelir Idaresi Baskanligi (gib.gov.tr) - Double Taxation Agreements (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12). Turkey WHT: dividends 10%, interest 10%, royalties 20%.)
Withholding Rate Summary
Source: Turkey Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Turkey) |
|---|---|---|
| Dividends (general) Portfolio investors | 12% | 10% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 10% | 10% |
| Interest Bank interest, bonds, loans | 10% | 10% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 10% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Turkey)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 12% applies to portfolio investors. A reduced rate of 10% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 10%.
Source: Turkey Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 10% statutory rate. This represents a no reduction from the statutory rate.
Source: Turkey Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 10% to 10%.
Source: Turkey Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Turkey Treaty Reference
Comparative Context
🇦🇪United Arab Emirates's Network
Among United Arab Emirates's 21 active treaty partners, the 12% general dividend rate ranks 14th (median: 10%).
| Partner | Rate |
|---|---|
| Netherlands | 10% |
| Thailand | 10% |
| South Africa | 10% |
| Turkey (this treaty) | 12% |
| Australia | 15% |
| Canada | 15% |
| Switzerland | 15% |
🇹🇷Turkey's Network
Among Turkey's 37 active treaty partners, the 12% general dividend rate ranks 8th (median: 15%).
| Partner | Rate |
|---|---|
| Russia | 10% |
| Saudi Arabia | 10% |
| Slovak Republic | 10% |
| United Arab Emirates (this treaty) | 12% |
| Austria | 15% |
| Australia | 15% |
| Switzerland | 15% |