Quote:
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Originally Posted by Gazgaskell
Hi, tax on interest on Turkisk lira savings/investment accounts is currently 15% of gross interest, so earn £100 interest & pay £15, & due to dual taxation agreements between UK & Turkey, this should be your only tax liabiity!
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This may be getting off of the thread a bit, but I don't think Gazgaskell's statement is right.
Dual taxation agreements do
not mean that if you are UK tax resident then you only pay the lower Turkish rate.
They
do mean that you will not have to pay full tax in both countries. The effect of this is that you have to pay Turkish tax on interest (15% (if that's what it is)) and then the rest of what you would have had to pay in the UK.
Therfore 15% to the Turkish taxman and 7% to UK taxman (Your 22% UK duty minus the 15% you have already paid in Turkey).