Turkey: Expiration of temporary Article 67 and potential tax rate changes
Reference
Effective
31 December 2015
temporary Article 67 (the Article) on taxation of gains from marketable securities, which was added to the Income Tax Law through Article 30 of the Law 5281, became effective on 1 January 2006 and will expire on 31 December 2015.
If the deadline of the Article is not extended by the Ministry of Finance, the old tax regime will be reinstituted. This will have several implications on the tax rates applied to non-resident investors.
Several major actors from the Turkish market, in particular participants of the Turkish Banking Association, have conducted discussions in order to escalate this issue to the Ministry of Finance in an attempt to postpone the expiration date of the Article.
In the event that no extension of the deadline is granted, the Article will expire on 31 December 2015 and the old tax regime will apply as of 1 January 2016.
The former tax regime that was applicable before 1 January 2006, affects mainly the withholding of Capital Gains Tax on equities, applicable to certain investor types (unrepresented beneficial owners).
We continue to monitor the situation with our local depository in the Turkish market and will inform our customers as soon as further information becomes available.
| This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |