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

19.01.2021

Clearstream Banking1 would like to inform customers that effective

immediately

the withholding tax rates applicable on interest income and capital gains on bonds and bills issued by banks and lease certificates issued by asset management companies acquired between the 23 December 2020 and 31 March 2021 have changed. 

This is following Presidential Decree number 3321 published in the Official Gazette.

Background

As per the Presidential Decree number 3321, Temporary Article 67 has been added to the Income Tax Law number 193.

Article 3 amends the withholding tax rates to be applied on interest income and capital gains from bonds and bills issued by banks and lease certificates issued by asset management companies.

These withholding tax rates are applicable for the above mentioned securities when purchased from a period of the 23 December 2020 to the 31 March 2021.

Impact on customers

The withholding tax rates for the mentioned securities and the related period of acquisition described above are the following:

Maturity of the security

Withholding tax rate on interest income

Up to 6 months (including 6 months)

5%

Up to 1 year (including 1 year)

3%

More than 1 year

0%

Period of holding

Withholding tax rate on capital gains

Sold within 6 months of holding (including 6 months)

5%

Sold 1 year of holding (including 1 year)

3%

Sold after more than 1 year of holding

0%

The withholding tax rates for other securities remain unchanged.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.