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

19.07.2022

Note: This Announcement, originally published on 21 April 2021, updated on 8 June 2021, 2 August 2021, 7 October 2021, 23 December 2021 and 7 April 2022, has been further updated to advise on the extension of the period for changes of withholding tax rates. Changes have been highlighted.

Further to our Tax Announcement A21009, Clearstream Banking1 informs customers, that the current 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 as of the 23 December 2020, will be extended until 30 December 2022.

This is following:

  • The previous Presidential Decree, no. 3755 and dated 31 March 2021 published in the Official Gazette dated 1 April 2021 (numbered 31441) extending the validity of the withholding tax rates until 31 May 2021; and
  • The previous Presidential Decree, no. 4027 and dated 1 June 2021 published in the Official Gazette extending the validity of the withholding tax rates until 31 July 2021.
  • The previous Presidential Decree, no. 4311 and dated 30 July 2021 published in the Official Gazette extending the validity of the withholding tax rates until 30 September 2021.
  • The previous Presidential Decree, no. 4561 and dated 1 October 2021 published in the Official Gazette extending the validity of the withholding tax rates until 31 December 2021.
  • The previous Presidential Decree, no. 4921 and dated 16 December 2021 published in the Office Gazette extending the validity of the withholding tax rates until 31 March 2022.
  • The previous Presidential Decree, no. 5630 and dated 1 April 2022 published in the Official Gazette extending the validity of the withholding tax rates until 30 June 2022.
  • The new Presidential Decree, no. 5752 and dated 27 June 2022 published in the Official Gazette extending the validity of the withholding tax rates until 31 December 2022.

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.