Turkish equities purchased before 1 January 2006 – 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 dividend and capital gains derived from Turkish equities purchased before 1 January 2006 are as follows:

Equities

Withholding tax rates

Capital gains tax rate

Equities purchased prior January 2006



10%


0 - 32% 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 dividend and capital gains derived from Turkish equities:

Equities purchased prior 1 January 2006

Beneficial owner

Withholding Tax Rate

Capital Gain Tax Rate

Represented Type-A Investment Funds (NRIFs) a)

0%

0%

Unrepresented beneficial owners b)

DTT%

32%

Documentation requirements

Customers are requested to provide the following documentation depending on the status of the underlying beneficial owners:

Unrepresented beneficial owners:

  • Certificate of Tax Residence (applicable for withholding tax on dividends)

Represented Type-A Investment Funds (NRIFs):

No documentation is required to obtain relief at source. Exemption from withholding and capital gains tax is granted based on the documents provided at the time of the TIN request.

Deadlines

Equities purchased prior January 2006:

Document

Deadline for receipt by Clearstream Banking

Certificate of Tax Residence

At the latest 21 business days before the first dividend payment. Before 10 March in case of renewal.