Turkey: Temporary changes in withholding tax rates on interest income from bank bonds and lease certificates


To note: This announcement, originally published on April 21, 2021, updated on June 8, 2021, August 2, 2021 and October 7, 2021, has been updated again to inform about the extension of the withholding rate modification period to the source. The changes have been highlighted.

Following our tax announcement A21009, Clearstream Banking1 informs clients that the withholding tax rates in force applicable to interest income and capital gains on bonds and bills issued by banks and lease certificates issued by portfolio management companies acquired from 23 December 2020, will be extended until 31March 2022.

This is the following:

  • The previous presidential decree, no. 3755 and of March 31, 2021 published in the Official Journal of April 1, 2021 (number 31441) extending the validity of the withholding tax rates until May 31, 2021; and

  • The previous presidential decree, no. 4027 and dated June 1, 2021 published in the Official Journal extending the validity of withholding tax rates until July 31, 2021.

  • The previous presidential decree, no. 4311 and of July 30, 2021 published in the Official Journal extending the validity of the withholding tax rates until September 30, 2021.

  • the previousPresidential decree, n. 4561 and dated October 1, 2021 published in the Official Journal extending the validity of withholding tax rates until December 31, 2021.

  • The new presidential decree, no. 4921 and of December 16, 2021 published in the Official Journal extending the validity of the withholding tax rates until March 31, 2022.

Impact on customers

The withholding tax rates for the securities mentioned and the associated vesting period described above are as follows:

Title maturity

Withholding tax rate on interest income

Up to 6 months (including 6 months)

5%

Up to 1 year (including 1 year)

3%

More than a year

0%

Holding period

Withholding tax rate on capital gains

Sold within 6 months of holding (including 6 months)

5%

Sold 1 year of detention (including 1 year)

3%

Sold after more than a year of detention

0%

The withholding tax rates for other securities remain unchanged.

More information

For more information, please contact Clearstream Banking Tax Support, Clearstream Banking Customer Services or your Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking SA, whose registered office is at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered in the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Clients AG using creation accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the B register of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

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