Reduced Income Withholding Tax Rate Application Extended

Within the framework of the authority set forth in the seventeenth paragraph of the provisional Article 67 of the Income Tax Law No. 193, the Council of Ministers Decree No. 2006/10731 was amended by the Presidential Decree No. 6618 dated 28/12/2022 and its annexed decision. With the said Presidential Decree, the references to 31/12/2022 in the provisional Articles 2, 3, 4, and 5 of the annexed decision of the Council of Ministers Decree No. 2006/10731 were changed to 30/6/2023.

With the aforementioned Presidential Decree;

• The application period of reduced withholding tax rates (0%, 3%, 5% depending on maturity) on deposit interest income and participation account profit shares,

• The application period of the withholding tax rate (0%) on income derived from government bonds and treasury bills, as well as lease certificates issued by asset leasing companies established by the Treasury,

• The application period of reduced withholding tax rates (0%, 3%, 5% depending on maturity) on income derived from bonds and bills issued by banks and lease certificates where the fund user is these banks,

• The application period of the withholding tax rate (0%) on income derived from investment funds whose portfolio consists of Turkish lira and securities issued in Turkish lira,

• The application period of the reduced withholding tax rate (5%) on income and gains derived from asset-backed securities, mortgage-backed securities, asset-covered securities, and mortgage-covered securities issued by mortgage financing institutions established under the provisions of the Capital Markets Law,

has been extended by 6 months, valid until 30/6/2023 (including this date).