Article 11 Interest
     1. Interest arising in one of the States and paid to a resident of the other State may be taxed in that other State.
     2. However, such interest may also be taxed in the State in which it arises and according to the laws of that State, but the tax so charged shall not exceed:
(a) 10 per cent of the gross amount of the interest if it is paid on a loan made for a period of more than two years;
(b) 15 per cent of the gross amount of the interest in all other cases.
     3. Notwithstanding the provisions of paragraph 2:
(a) the Central Bank of Turkey shall be exempt from Netherlands tax with respect to interest arising in the Netherlands;
(b) the Central Bank of the Netherlands shall be exempt from Turkish tax with respect to interest arising in Turkey;
(c) the Government, the political subdivisions or the local authorities of one of the States shall be exempt from tax in the other State with respect to interest arising in that other State.
     4. The competent authorities of the States shall by mutual agreement settle the mode of application of paragraphs 2 and 3.
     5. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums attaching to such securities, bonds or debentures.
     6. The provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the interest, being a resident of one of the States, carries on business in the other State in which the interest arises, through a permanent establishment situated therein, or, in the case of a resident of Turkey, performs in the Netherlands independent personal services from a fixed base situated in the Netherlands, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
     7. Interest shall be deemed to arise in one of the States when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of one of the States or not, has in one of the States a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
     8. Where, by reason of a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each State, due regard being had to the other provisions of this Agreement.
     9. Where a resident of one of the other States sells industrial, commercial or scientific goods, equipment or merchandise to a resident of the other State, and the payments for such sales are made in a specified period after the delivery of such goods, equipment or merchandise, then not any part of such payments shall be regarded as interest for the purpose of this Article. In such case, the provisions of Articles 5 and 7 shall apply.