GVK Geçici 67. Madde Stopaj İndirim Süreleri Uzatma Kararı
Summary: With the Presidential Decision No. 5752, published in the Official Gazette No. 31880 on 28.06.2022, amendments were made to the Council of Ministers Decision No. 2006/10731. The period for applying discounted withholding tax rates to income from deposit and participation accounts, as well as foreign exchange-protected deposit accounts, certain investment funds, and bank financing bonds, has been extended until 31.12.2022. Additionally, the withholding tax rate for income and gains derived from products issued by mortgage financing institutions has been set at 5% until 31.12.2022.
According to this, the withholding tax rates under the Decision are as follows:
1) Withholding Tax Rates on Deposit Interest and Profit Shares
a) Withholding Tax Rates on Deposit Interest
i) For non-interest-bearing and notice accounts, as well as accounts with terms of up to (including) 6 months: 5%
ii) For accounts with terms of up to (including) 1 year: 3%
iii) For accounts with terms longer than 1 year: 0%
iv) For accounts with a variable interest rate based on the inflation rate and terms longer than 1 year: 0%
v) For foreign exchange-protected deposit accounts and deposits converted from foreign currency to Turkish Lira based on the conversion rate: 0%
vi) For gold-denominated deposit accounts converted to Turkish Lira based on the conversion price: 0%
b) Withholding Tax Rates on Profit Shares Paid by Participation Banks
i) For non-interest-bearing, notice, and special current accounts, as well as accounts with terms of up to (including) 6 months: 5%
ii) For accounts with terms of up to (including) 1 year: 3%
iii) For accounts with terms longer than 1 year: 0%
iv) For foreign exchange-protected participation accounts and participation fund accounts converted to Turkish Lira based on the conversion rate: 0%
v) For gold-denominated participation fund accounts converted to Turkish Lira based on the conversion price: 0%
2) Withholding Tax Rates on Bank Bonds and Notes, as well as on Lease Certificates Issued by Asset Leasing Companies Whose Users are Banks, and on Investment Fund Gains
a) Withholding Tax Rates on Lease Certificates
i) For income from certificates with a maturity of up to (including) 6 months: 5%
ii) For income from certificates with a maturity of up to (including) 1 year: 3%
iii) For income from certificates with a maturity of more than 1 year: 0%
iv) For gains derived from the sale of certificates held for less than 6 months (including): 5%
v) For gains derived from the sale of certificates held for less than 1 year (including): 3%
vi) For gains derived from the sale of certificates held for more than 1 year: 0%
b) Withholding Tax Rate on Gains from Investment Funds
A withholding tax rate of 0% will apply to income and gains derived from investment funds (excluding variable, mixed, eurobond, external debt, foreign, free funds, and funds with “foreign currency” in their name).
3) Withholding Tax Rate on Income and Gains from Products Issued by Mortgage Financing Institutions
With this Decision, an additional temporary article (Article 5) was added to the Council of Ministers Decision No. 2006/10731. The withholding tax rate on income and gains derived from asset-backed securities, mortgage-backed securities, mortgage collateralized securities, and asset-backed securities issued by mortgage financing institutions between the effective date of the Decision (28.06.2022) and 31.12.2022 (inclusive) has been set at 5% until 31.12.2022.
You can access the related Decision here.
Best regards,
BİLGENER
