Turkey and Switzerland signed a tax treaty on 18 June 2010 (replacing a pending 2008 treaty), but the treaty is not yet in force. Once in effect, the treaty provides that dividends will be subject to a withholding tax rate of 5% if the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the distributing company (dividends arising in Turkey are subject to the additional requirement that relief from Swiss tax is granted by way of an abatement of the profits tax under specific ratio); otherwise, the rate will be 15%. Interest and royalties will be subject to a withholding tax rate of 10%