Taxation of dividends and capital gains due to disposal of shares under the double taxation treaties

Although the taxation authority appears to be at the discretion of each state, the conflict arising due to source and residency principles adopted by the countries based on the country being a capital importer or exporter causes people to suffer from double taxation and accordingly certain regulations are required to be enacted to prevent such loss. Considering the conflict between source and residency principle accepted by the countries, double taxation practices of capital gains due to disposal of shares and under 85 double taxation treaties which has been drafted based on OECD Model Agreement have been examined in this thesis. In this context, the regulations and methods applied in our domestic law in order to prevent double taxation were studied, and it was aimed to realize the limits of Turkey's taxation authority under the double taxation treaties. The relevant articles of the OECD Model Agreement have been examined by taking into account the reservations made by our country and application of double taxation agreements in the domestic law by the judicial authority and the Revenue Administration have been tried to be determined as per the writs and precedents. Key words: Double Taxation, Dividends, Capital Gains, OECD, Residence