IV. Convention respecting conditions of
Residence and Business and Jurisdiction
Chapter I.
Conditions of Residence and Business
Article 1
The application in Turkey of each of the
provisions of this Chapter to nationals and corporations of the other
Contracting Powers is expressly subject to complete reciprocity being accorded
to Turkish nationals and corporations in the territories of the said Powers.
Should one of these Powers refuse, in
consequence of a provision in its law or for another reason, to accord
reciprocity in respect of any such provision, its nationals and corporations
will not be entitled to benefit by such provision in Turkey.
For the purposes of this Article each of the
Domimons, colonies and countries under the protection or authority of the
Contracting Powers will be considered as a separate contracting country.
SECTION I
Entry and Residence
Article 2
In Turkey the nationals of the other
Contracting Powers will be received and treated, both as regards their persons
and property, in accordance with ordinary international law. They will enjoy
in Turkey the complete and constant protection of the local law and
authorities for their persons, their property, rights and interests. Without
prejudice to the provisions respecting immigration, they will have complete
freedom to enter and establish themselves in Turkey, and may accordingly come,
go and reside there, subject to compliance with the laws and regulations in
force.
Article 3
In Turkey the nationals of the other
Contracting Powers will have the right to acquire, to possess and to dispose
of all kinds of property both movable and immovable, subject to compliance
with the local laws and regulations; they will in particular be able to
dispose thereof by sale, exchange, gift, testamentary disposition, or in any
other way, and to take possession by inheritance in accordance with the law,
or under dispositions inter-vivos or by will.
Article 4
The admission in Turkey of nationals of the
other Contracting Powers to the defferent forms of commerce, professions and
industry, and reciprocally the admission, in the territories of the said
Powers, of Turkish nationals to the different forms of commerce, professions
and industry, will form the subject of separate conventions to be concluded
between Turkey and the said Powers within twelve months from the coming into
force of the present Convention.
It is understood that, pending the conclusion
of the said Conventions, the status quo as on the 1st January,
1923, will be maintained, and that if any such Convention has not been
concluded at the end of the said period of twelve months each of the
Contracting Powers concerned will recover its freedom of action, subject to
the rights acquired by individuals before the 1st January, 1923,
being respected.
Article 5
In Turkey, commercial, industrial and
financial corporations, including transport and insurance corporations, which
are regularly incorporated on the territory of any one of the other
Contracting Powers, shall be recognised.
In all matters relating to their
constitution, their legal capacity and their right to sue and be sued, they
will be treated in accordance with their national law.
They will have the right to establish
themselves in Turkish territory and to engage in all forms of commerce and
industry in engage, and which are not forbidden in Turkey to Turkish
corporations. They will have the right freely to conduct their affairs in
Turkey, subject to compliance with the prescriptions relating to public order,
and will enjoy in this respect the same rights as any similar Turkish
corporation.
They will have the right to acquire, to
possess and to dispose of all kinds of movable property, subject to compliance
with the local laws and regulations. They will have a similar right as regards
immovable property which is necessary for the operations of the corporation,
provided, in this case, that the acquisition of such property does not
constitute the object of the corporation's existence.
Article 6
In Turkey the nationals of the other
Contracting Powers will not be subject to the laws relating to military
service. They will be exempt from any such service and from any obligation or
payment which replaces such service.
Their property may not be expropriated or the
use of it denied to them even temporarily, except for reasons of public
interest recognised by law as such, and in return for fair compensation to be
paid in advance. No expropriation may take place without public notice being
previously given.
Article 7
Turkey reserves the right to expel, in
individual cases, nationals of the other Contracting Powers, either under the
order of Court or in accordance with the laws and regulations relating to
public morality, public health or pauperism, or for reasons affecting the
internal or external safety of the State. The other Contracting Powers agree
to receive persons thus expelled, and their families, at any time.
The expulsion shall be carried out in
conditions complying with the requirements of health and humanity.
SECTION II
Fiscal Clauses
Article 8
Nationals of the Contracting Powers, other
than Turkey, shall not be subjected to any charge, tax or impost of any kind
or under any description whatsoever, other or higher than those which may be
imposed on Turkish nationals, in respect of their stay or residence in Turkish
territory, or in respect of the exercise of any form of commerce, profession,
industry, enterprise or activity of whatever kind in Turkey which is open to
them in accordance with the provisions of Article 4.
The nationals of the said Powers who are
established abroad and who, while passing through Turkish territory undertake
any business, shall not be subjected to any charge, tax or impost of any kind
or under any description whatsoever other or higher than those to which
Turkish nationals or foreigners established in Turkey are subjected in respect
of an activity of the same kind and importance, in accordance with the fiscal
provisions in force in the country.
The property, rights and interests in Turkish
territory of the nationals of the said Powers shall not be subjected to any
impost, tax or charge, direct or indirect, other or higher than those which
may be imposed on the property, rights and interests of Turkish nationals,
whether as regards the acquisition, possession or enjoyment of the said
property, or as regards its transfer by grant, exchange or succession.
Article 9
Commercial, industrial or financial
corporations, including transport and insurance corporations which are
incorporated in accordance with the law of one of the other contracting
countries, and which, in accordance with the provisions of Article 5,
establish themselves in Turkey or carry on their affairs there, shall not be
subjected to any impost, tax or charge, of any kind or under any description
whatsoever, to which corporations of the same kind incorporated under Turkish
law are not subjected.
The same provisions apply to associated
companies, branches, agencies and other representatives of firms or companies
of the said countries which, in accordance with the provisions of Article 5,
are established or carry on their affairs in Turkey, in being understood that,
when the control of these firms or companies is outside Turkey, the said
associated companies, branches, agencies and representatives will only be
taxed in proportion to the amount of the capital actually employed in Turkey,
or in respect of the profits and revenues which they have actually earned
there, these profits and revenues being used to determine the amount of
capital employed if it is impossible to verify that capital.
Article 10
If the Turkish Government establishes any
exemptions from fiscal charges, or any kind or under any description
whatsoever, these exemptions will be granted to the nationals or companies
established in Turkey of the other contracting countries in the same way as to
Turkish nationals or to companies established under Turkish law.
This provision cannot be used to support a
claim to the benefit of exemptions from charges granted to undertakings
established by the State or to concessionaires of public utility service.
Article 11
In respect of all matters referred to in
Articles 8 to 10, provincial or local charges, imposts or taxes, leviable in
Turkey on the nationals of the other contracting countries shall not be other
or higher than those levied on Turkish nationals.
Article 12
No forced loan or capital levy shall be
imposed in Turkey, even in case of war, on nationals of other contracting
countries established in Turkey or carrying on their affairs therein, or on
their property, rights and interests situated in Turkish territory, or on
corporations, associated companies, branches or agencies constituted under the
law of one of the said countries and established in Turkey or carrying on
their affairs therein.
Article 13
The Capitulations having been abolished,
Turkey will not grant to the nationals of foreign, countries any treatment
more favourable than that accorded to her own nationals, and will apply to her
nationals and to the nationals of the other Contracting Parties the principle
of equality of treatment as regards the matters referred to in this Section.
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