Withholding Rates Related to Deposit Interest and Dividends Paid by Participation Banks are reduced

Through the promulgation of the President Decision No. 3032 (“Decision”), published in the Official Gazette dated 30th September 2020 and No. 31260, the withholding tax rates on the interest earned from Turkish Lira deposit accounts and the dividends paid to participation accounts by participation banks are temporarily reduced.

Through the Decision, withholding is applied at the rates of 0%, 3% and 5%, depending on the term, on the TL deposit interests and the dividends paid by participation banks in return for a TL participation account.

New withholding rates are applied to interests and dividends to be paid to checking and private current accounts until December 31, 2020 (including this date) and interest and dividends to be paid to accounts opened between September 30, 2020 and December 31, 2020 (including this date) or whose maturity is renewed between these dates.

The Decree enters into force on the date of its publication.

You may find the full text of the Decree here.