13.11.2024/62
Some Withholding Tax Rates Under Provisional Article 67 Increased
With the Presidential Decree (Decree) No. 9075 published in the Official Gazette No. 32709 dated 01.11.2024 and numbered 32709, the Council of Ministers Decree No. 2006/10731 was amended and the application of reduced withholding tax on deposit and participation accounts, some mutual funds and bank financing bond income was changed.
The changes made are presented in the table below on a comparative basis by financial instruments:
| 1- Withholding Tax Rates on Deposit Interest and Profit Shares | ||
|---|---|---|
| Related Instrument | Old Rate | New Rate |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion rate in foreign currency-protected deposit accounts and foreign currency deposit accounts, for up to 6 months | 7.50% | 10.00% |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion rate in foreign currency-protected deposit accounts and foreign currency deposit accounts, for up to 1 year | 5% | 7.50% |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion price in gold-backed deposit accounts, for up to 6 months | 7.50% | 10.00% |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion price in gold-backed deposit accounts, for up to 1 year | 5% | 7.50% |
| 2- Withholding Tax Rates on Profit Shares Paid Against Participation Accounts by Participation Banks | ||
| Related Instrument | Old Rate | New Rate |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion rate in foreign currency-protected deposit accounts and foreign currency deposit accounts, for up to 6 months | 7.50% | 10.00% |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion rate in foreign currency-protected deposit accounts and foreign currency deposit accounts, for up to 1 year | 5% | 7.50% |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion price in gold-backed deposit accounts, for up to 6 months | 7.50% | 10.00% |
| Deposit accounts converted to Turkish Lira from foreign currency through the conversion price in gold-backed deposit accounts, for up to 1 year | 5% | 7.50% |
| 3- Withholding Tax Rates on Income and Profits from Bonds, Bills, and Lease Certificates Issued by Banks | ||
| Related Instrument | Old Rate | New Rate |
| Income from instruments with a maturity of up to 6 months (inclusive) | 7.50% | 10.00% |
| Income from instruments with a maturity of up to 1 year (inclusive) | 5% | 7.50% |
| Income from instruments with a maturity longer than 1 year | 2.50% | 5.00% |
| Gains from the disposal of instruments held for less than 6 months (inclusive) | 7.50% | 10.00% |
| Gains from the disposal of instruments held for less than 1 year (inclusive) | 5% | 7.50% |
| Gains from the disposal of instruments held for more than 1 year | 2.50% | 5% |
| 4- Withholding Tax Rates on Gains from Investment Funds | ||
| Related Instrument | Old Rate | New Rate |
| Income and gains from investment funds (excluding variable, mixed, eurobond, external debt, foreign, free funds, and investment funds with “foreign currency” in their title) | 7.50% | 10.00% |
| 5- Withholding Tax Rates on Income and Profits from Products Issued by Mortgage Financing Institutions | ||
| Related Instrument | Old Rate | New Rate |
| Income and profits from asset-backed securities, mortgage-backed securities, mortgage collateralized securities, and asset collateralized securities issued by mortgage financing institutions | 7.50% | 7.50% |
Effectiveness: The rates in sections 1 and 2 shall enter into force on the date of publication to be applied for the interest and dividends to be paid to demand and special current accounts as of 1.11.2024 and for the interest and dividends to be paid to time accounts opened or renewed as of the said date.
The rates in sections 3 and 4 shall enter into force on the date of publication to be applied for income and gains from bonds and bills issued by banks acquired after 1.11.2024, income and gains from lease certificates issued by asset leasing companies where the fund user is these banks, and income and gains from investment fund participation shares.
The rates in Section 5 shall enter into force on the date of publication to be applied for the income and gains derived from asset-backed securities, mortgage-backed securities, mortgage-backed securities, mortgage-backed securities and asset-backed securities issued by mortgage finance institutions established within the scope of Law No. 6362 (including asset finance funds and housing finance funds founded by these companies) acquired as of 1.11.2024.
You can access the relevant Decision here.
Sincerely,
BİLGENER
