Other Turkish debt securities - relief at source - rates, eligibility, documentation, deadlines etc.

25.10.2022

Withholding and capital gains tax

The default rates of withholding and capital gains tax applicable in Clearstream Banking on income and capital gains derived from other Turkish Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds) are as follows:

Withholding tax rates

Capital gains tax rate

Other Turkish debt securities (Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds)

0 -10% (a)

0-10% (a)

a.The default tax rate applied depends on the legal status of the beneficial owner at the time of the TIN request

Relief at source

Eligible beneficial owners

The following beneficial owners are eligible to obtain relief at source on interest and capital gains derived from Turkish Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds:

Other types of bonds (Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds)

Beneficial owner

Withholding Tax Rate

Capital Gain Tax Rate

Capital corporations

0%

0%

Investment funds 

0%

0%

Individuals

0% (a) / 10%

0% (a) / 10%

a. 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.

Documentation requirements

Automatic exemption from withholding tax on interest and capital gains from Turkish Government bonds, Treasury Bills, Liquidity Bills and Corporate bonds is available to beneficial owners that qualify for a reduced tax rate.

The exemption is granted based on the documents provided at the time of the TIN request and no additional tax certification is to be provided by the beneficial owners in order to obtain this rate.