Türkiye–U.S. tax treaty for the prevention of double taxation

There is an income tax treaty between the United States and Türkiye; Türkiye appears on the IRS treaty list. The treaty contains rules intended to prevent the same income from being taxed in both countries. On this page, you will find who the treaty covers, the "saving clause" for U.S. residents, rules by type of income, how to claim treaty benefits (Forms 8833, W-8BEN, and Form 6166), and common mistakes.

• The treaty and its protocol were signed in Washington on March 28, 1996. The general effective date is January 1, 1998.
• The treaty applies to persons who are residents of one or both countries (Article 1).
• More favorable exemptions, deductions, and credits available under either country's domestic law are not restricted because of the treaty.
• The treaty is indefinite. Either party may terminate it after five years from its entry into force by giving diplomatic notice at least six months in advance. It appears as in force on the IRS list.
• To claim treaty benefits, you must claim them on a tax return or the relevant forms. Consult a tax professional about which article applies.

• Under paragraph 3 of Article 1, the United States may tax its residents and citizens as if the treaty did not exist.
• A person who relinquishes citizenship to avoid tax is treated as a citizen for this purpose for 10 years after relinquishment.
• Exceptions (Article 1/4):
  • For everyone: associated enterprises (Article 9/2), social security payments (Article 18/2), relief from double taxation (Article 23), nondiscrimination (Article 24), and the mutual agreement procedure (Article 25).
  • For non-U.S. citizens who do not hold immigrant status (a green card): government service (Article 19), students and teachers (Article 20), and diplomatic and consular officials (Article 27).
• What does this mean in practice?
  • If you are a green card holder or U.S. citizen, you report your income from Türkiye in the United States. You generally avoid double taxation by deducting the tax paid in Türkiye from your U.S. tax as a foreign tax credit.
  • According to the text, a student without immigrant status may continue to benefit from the student article (Article 20), even if they are considered a U.S. resident based on the day-counting rules.

• If you are a resident under the laws of both countries, the treaty decides in the following order:
  1. In the country where you have a permanent home.
  2. If you have a permanent home in both countries, in the country with which your personal and economic relations are closer (center of vital interests).
  3. If this cannot be determined, in the country where you habitually live.
  4. If that cannot be determined either, in the country of which you are a citizen.
  5. If you are a citizen of both countries or of neither, the competent authorities of the two countries decide by agreement.
• Residence under the treaty may differ from the definition of residency under the U.S. Internal Revenue Code.
• A person who elects to be treated as a resident of Türkiye under the treaty is treated as a nonresident for that period when calculating U.S. tax. In this case, file Form 1040-NR and attach Form 8833.

• Dividends (Article 10): Source-country tax may not exceed 15% of the gross dividend for a company that owns at least 10% of the voting power of the company, and 20% in other cases.
• Interest (Article 11): Source-country tax may not exceed 15% of the gross interest. The limit is 10% for interest on a loan granted by a financial institution such as a bank, savings institution, or insurance company.
• Royalties and license fees (Article 12): Depending on the type of payment, source-country tax may not exceed 5% or 10%.
• Independent personal services (Article 14): A resident of Türkiye is exempt from U.S. tax on this income if they do not stay in the United States for more than 183 days in any 12-month period and do not have a fixed place regularly available to them in the United States.
• Dependent personal services (Article 15): A Türkiye resident's compensation for work in the United States is exempt from U.S. tax if all three of the following conditions are met:
  • They do not stay in the United States for more than 183 days in any 12-month period
  • the compensation is paid by an employer who is not a U.S. resident
  • the compensation is not borne by the employer's U.S. permanent establishment
• Artists and athletes: Those whose gross annual income from activities in the United States exceeds $3,000 cannot benefit from these exemptions.
• Private pensions (Article 18/1): A pension paid for past employment is taxed in the country where the recipient is a resident.
• Social security payments (Article 18/2): Payments made under the social security legislation of one country to a resident of the other country or to a U.S. citizen are taxed only in the country making the payment. This article is an exception to the saving clause and also applies to persons resident in the United States. Consult a tax professional about its application. To receive a U.S. pension in Türkiye, see 17.5.
• Government service (Article 19): Compensation, other than a pension, paid by the government of Türkiye or its local authorities for government services is exempt from U.S. tax. There is an exception for residents of the United States who provide services in the United States. A pension paid by Türkiye for government service is exempt from U.S. tax if the recipient is neither a U.S. resident nor a U.S. citizen.
• Students, apprentices, and trainees (Article 20/1): Payments from outside the United States for the maintenance, education, and training of a person who was a resident of Türkiye immediately before coming to the United States and is in the United States for full-time education or training are exempt from U.S. tax.
• Teachers and researchers (Article 20/2): Teaching and research payments received from outside the United States by a person who was a resident of Türkiye immediately before coming to the United States and is in the United States to teach or conduct scientific research for no more than two years are exempt. Salary received from a U.S. institution does not qualify for this exemption.

1. Determine your residence. First review the U.S. rules (see 15.1) and, if necessary, Article 4 of the treaty.
2. Identify the article that applies to your income.
3. Reduce withholding upfront (nonresidents): If you receive dividends or interest from the United States, give the payer Form W-8BEN. A taxpayer identification number may be required for the treaty rate; if you do not have an SSN, obtain an ITIN (reason "a" on Form W-7; see 15.2).
4. Claim it on your tax return: File Form 1040-NR or Form 1040.
5. Attach Form 8833: If you take a position based on the treaty that reduces or eliminates U.S. tax, explain it on Form 8833.
   • A separate Form 8833 is required each year for each position.
   • Form 8833 is not required in the following cases: reduced withholding on effectively unconnected income such as dividends, interest, rent, and royalties; or reduced rates for wages received as an employee, pensions, annuities, and social security payments.
   • Even if you are not required to file a tax return because of the treaty position, you file one to report the position.
   • The penalty for failing to report is $1,000 ($10,000 for C corporations).
6. Claim a credit for tax paid in Türkiye: Under Article 23 of the treaty, the United States grants its residents and citizens a credit for income tax paid in Türkiye. The credit is claimed on Form 1116; the rules are in Publication 514.
7. Obtain a U.S. residency certificate to claim treaty benefits in Türkiye: A payer or institution in Türkiye may ask you to prove that you are a U.S. resident. The IRS issues this in a Form 6166 letter; apply using Form 8802.
   • Fee (since October 1, 2026): $105 for individuals (previously $85) and $230 for businesses (previously $185). The fee is nonrefundable.
   • Payment is made through Pay.gov. The application form must also be sent by mail or fax; the address and fax number are in the Form 8802 instructions.
   • Mail the application at least 45 days before the date you will need the certificate. If there will be a delay, the IRS will notify you after 30 days.
   • For questions: +1 267 941 1000 (toll call; select the "U.S. residency" option).

• Under Article 23 of the treaty, a resident of Türkiye who earns income that may be taxed in the United States credits the tax paid in the United States against Turkish tax. The credit may not exceed the Turkish tax attributable to that income.
• For your filing and payment obligations in Türkiye, consult the website of the Revenue Administration (GİB).
• If double taxation has occurred or will occur and you believe you are a U.S. resident, you may apply to the competent authority. Article 25 of the treaty governs this mutual agreement procedure.

• Assuming that, as a green card holder, treaty benefits mean income from Türkiye does not have to be reported in the United States.
• Not reporting income that is exempt under the treaty at all on the tax return.
• Failing to attach Form 8833 when required.
• Treating salary received from a U.S. university as eligible for the two-year teacher exemption; the exemption applies to payments from outside the United States.
• Accepting 30% withholding without submitting Form W-8BEN when a nonresident receives dividends from the United States.
• Waiting until the last minute to apply for Form 6166.
• Electing Türkiye residence without understanding the consequences for a long-term green card holder.

• Can I deduct the tax I paid in Türkiye in the United States? If you are a U.S. resident or citizen, you may claim a foreign tax credit on Form 1116 under Article 23 of the treaty and U.S. law.
• I receive a Turkish pension from SGK and am a U.S. resident. Under Article 18/2 of the treaty, social security payments are taxed only in the country making the payment, and this rule also applies to U.S. residents. Consult a tax professional about your situation.
• I am an F-1 student, and my family sends me money from Türkiye. Under Article 20/1 of the treaty, maintenance and education payments from outside the United States are exempt from U.S. tax.
• Do I need an ITIN to claim treaty benefits? If you do not have an SSN and a taxpayer identification number is required for the treaty benefit, yes; select reason "a" on Form W-7.
• What happens if I do not file Form 8833? A penalty of $1,000 may apply to individuals for each unreported position.
• How long does Form 6166 take? The IRS asks you to mail the application at least 45 days before the date you need it; if there is a delay, it will notify you after 30 days.

• Türkiye–U.S. income tax treaty, 1996 (PDF)
• Technical explanation of the treaty, 1996 (PDF)
• IRS – Türkiye treaty documents page
• Publication 901: U.S. tax treaties (PDF)
• IRS – Treaty tables
• Form 8833 (PDF)
• Form W-8BEN (PDF)
• Form 1116: foreign tax credit (PDF)
• Publication 514: foreign tax credit guide (PDF)
• Form 8802 (PDF) · Form 8802 instructions (PDF)
• Publication 515: withholding of tax on nonresident aliens (PDF)