General information - types of securities, deadlines, other market specifics - Turkey
Types of securities eligible in Clearstream Banking
The eligible securities issued in Turkey are as follows:
- Government bonds (including revenue-indexed bonds);
- Treasury bills;
- Liquidity bills;
- Corporate bonds;
- Equities and equity products (including rights and warrants);
- ETFs (Exchange Traded Funds), open-end investment funds, investment trusts (closed-end investment funds), hedge funds and money market funds eligible for secondary market settlement in Merkezi Kayıt Kuruluşu (MKK) or Takasbank only.
Trading prerequisite - Turkish Tax ID or Turkish national ID number
In order to settle transactions in Turkish securities in Clearstream Banking, customers must include the relevant Tax ID or Turkish national ID number of the underlying beneficial owners, in all settlement instructions.
Beneficial owners must consequently request or register a Turkish Tax ID or a Turkish national ID number (Turkish resident individuals) as follows:
- Those who do not have a Turkish Tax ID must request one before executing any trades.
- Those who are Turkish resident individuals must register their existing Turkish national ID number.
- Those who have obtained a Turkish Tax ID from somewhere other than the Clearstream Banking depository and/or who want to transfer it from one Clearstream account to another must register the existing Turkish Tax ID.
Please refer to the Trading prerequisite section for further information.
For detailed settlement instruction requirements, please consult the Market Link Guide - Turkey.
Applicable default withholding and capital gains tax rates
The default rates of withholding and capital gains tax applicable in Clearstream Banking on income and capital gains derived from Turkish securities are as follows:
Debt Securities
Withholding tax rates | Capital gains tax rate | |
Gold based government bonds and gold-based lease certificates | 0% | 0% |
Other type of bonds (Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds) | 0 -10% (a) | 0-10% (a) |
Equities
Withholding tax rates | Capital gains tax rate | |
Equities purchased prior January 2006 | 10% (b) | 0 - 32% (a) |
Equities purchased on/after January 2006 | 10% (b) | 0% |
a. The default tax rate applied depends on the legal status of the beneficial owner at the time of the TIN request.
b. A reduced tax rate may be applied, if a certificate of tax residence is provided on an annual basis.
Tax Services
Gold based government bonds and gold based lease certificates | Withholding tax (0%) | Capital Gains tax (0%) | |||||
Beneficial owner type | Relief at | Quick | Standard | Relief at | Quick | Standard | |
All beneficial owner types | n/a | n/a | n/a | n/a | n/a | n/a | |
Other types of bonds (Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds) | Withholding tax (0-10%) | Capital Gains tax (0-10%) | |||||
Beneficial owner type | Relief at | Quick | Standard | Relief at | Quick | Standard | |
Capital corporations | Yes a) | No | No | Yes (a) | No | No | |
Investment Funds | Yes a) | No | No | Yes (a) | No | No | |
Individuals | Yes a) c) | No | No | Yes (a) (c) | No | No | |
Other beneficial owners (not capital corporations, investment funds or individuals) | No | No | No | No | No | No | |
Equities purchased prior January 2006 | Withholding tax (0-10%) | Capital Gains tax (0-32%) | |||||
Beneficial owner type | Relief at | Quick | Standard | Relief at | Quick | Standard | |
Represented Type A investment funds (NRIFs) | Yes b) | No | No | Yes (a) | No | No | |
Unrepresented beneficial owners | Yes b) | No | No | No (a) | No | No | |
Equities purchased on or after January 2006 | Withholding tax (0-10%) | Capital Gains tax (0%) | |||||
Beneficial owner type | Relief at | Quick | Standard | Relief at | Quick | Standard | |
Non-residents not resident in a DTT country | No | No | No | n/a | n/a | n/a | |
Residents of Double Taxation Treaty (DTT) countries | Yes (b) | No | No | n/a | n/a | n/a | |
Residents of Turkey | No | No | No | n/a | n/a | n/a | |
a. The tax rate applied depends on the legal status of the beneficial owner at the time of the TIN request.
b. A reduced tax rate may be applied, if a certificate of tax residence is provided on an annual basis.
c. The withholding and capital gains tax rate on Turkish government bonds and treasury bills is 0% for individuals, who have purchased such securities during the period of 22 December 2021 – 31 December 2022. 10% is applicable in all other cases.
Apostil, translation and notarisation
The apostil is a legal requirement. Original documents sent to Clearstream’s local depository, should be apostilled by the apostil authority of the country of residence of the beneficial owner.
The translation of apostilled original documents into Turkish will be arranged by Clearstream’s local depository and performed in Turkey by a translation agency. It is preferable, in terms of translation time and cost, that documents are submitted in English but translation facilities are offered in several languages.
Notarisation of translated documents will be performed in Turkey by a notary appointed by Clearstream’s local depository.
Important note: If there is no apostil authority in the country of residence of the beneficial owner (for example, if the country is not part of the Hague convention), documents must be translated into Turkish by the Turkish Consulate, or by a sworn translator, and stamped by the Turkish Consulate of that country. It is recommended to seek the advice of the Turkish Consulate before initiating any translation. Since these documents will be received in Turkish, there will be no need of further processing for translation.
Holding restrictions
Please refer to the “Holding restriction” section of the Clearstream Banking Market Profile - Turkey.
Capital Gains Tax
Capital gains from Turkish securities are taxable as follows:
Gold based government bonds and gold-based lease certificates
There is no capital gains tax withheld through Clearstream Banking on such securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Other types of bonds
Other types of bonds (Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds) are by default subject to a capital gains tax rate of 10%.
Eligible beneficial owners can obtain relief at source but a reclaim of capital gains tax is not available through Clearstream Banking.
Equities purchased prior January 2006
The standard rates of capital gains tax on Turkish equities purchased before 1 January 2006 vary according to the type of beneficial owner, as follows:
- Represented Type-A Investment Funds (NRIFs) are not subject to capital gains tax in Clearstream Banking and are always paid gross.
Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
- Unrepresented beneficial owners are subject to 32% capital gains in Clearstream Banking.
Equities purchased on/after January 2006
There is no capital gains tax withheld through Clearstream Banking on such securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not provide assistance in this regard. Please consult your tax advisor for further information.
Deadlines for trading pre-requisite and relief at source
The deadlines for the submission of the documentation for registering or requesting a new Turkish Tax ID/ Turkish national ID number for and relief at source are as follows:
Requesting a new Turkish Tax ID or Turkish national ID number:
Document | Deadline for receipt by Clearstream Banking |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
Certificate of Incorporation or the Articles of Incorporation or the Prospectus | At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. |
A copy of an identity card | At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
Certificate of Tax Residence (only required if the beneficial owner is claiming DTT relief for equities) | At the latest 21 business days before the first dividend payment. Before 10 March in case of renewal |
Registering an existing Turkish Tax ID or Turkish national ID number:
Document | Deadline for receipt by Clearstream Banking |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
Request for Registration of an existing Turkish Tax ID or Turkish national ID number | At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
Certificate of Incorporation or the Articles of Incorporation or the Prospectus | At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. |
A copy of an identity card | At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. |
A Confirmation of the Turkish tax ID number of the institution | At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. |
At the latest 15 business days before receipt of the securities in the customer account with Clearstream Banking. | |
Certificate of Tax Residence (only required if the beneficial owner is claiming DTT relief for equities) | At the latest 21 business days before the first dividend payment. Before 10 March in case of renewal |
Relief at source
The deadlines for the submission of the documentation to obtain relief at source of withholding tax on income distributions on Turkish securities are as follows:
Gold based government bonds and gold-based lease certificates:
Gold based government bonds and gold-based lease certificates are subject to 0% withholding and capital gains tax for all types of beneficial owners (individual and institutional) and no tax certification is to be provided by the beneficial owners in order to obtain this rate.
Other debt securities (Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds):
No deadline applies. Automatic relief at source is granted, to eligible beneficial owners, based on the documents provided at the time of the TIN request.
Equities purchased prior January 2006:
Document | Deadline for receipt by Clearstream Banking |
At the latest 21 business days before the first dividend payment. Before 10 March in case of renewal. |
Equities purchased on/after January 2006:
Document | Deadline for receipt by Clearstream Banking |
At the latest 21 business days before the first dividend payment. Before 10 March in case of renewal. |
Standard refund
Standard refund is not available via Clearstream Banking