The Decree on the Withholding Rates in Temporary Article 67 of Income Tax Law No. 193 (Decree No. 10041) was published in Official Gazette No. 32951 of 9 July 2025.
The “Decree on the Withholding Rates in Temporary Article 67 of Income Tax Law No. 193 (Decree No: 10041)” was published in Official Gazette No. 32951 of 9 July 2025.
The withholding rates on certain income and revenues under temporary Article 67 of the Income Tax Law have been increased as set out below, by amending Decree No. 2006/10731 of 22 July 2006.
- Withholding rate on income from investment funds
Article 1 of the Decree replaces the expression “15%” in item (ii) of subparagraph (a)(1) and item (ii) of subparagraph (ç) of the first paragraph of Article 1 of the Decree annexed to Council of Ministers Decree No. 2006/10731 with “17.5%”.
Accordingly, the withholding rate applied to income from other investment funds has been raised from 15% to 17.5%, while the 0% rate applied to income from equity-intensive funds and from venture capital and real estate investment funds held for more than two years remains unchanged.
This change entered into force on the date of publication, to apply to income from investment fund participation units acquired from 9 July 2025 onwards.
ii) The rate remains 0% for income from participation units of equity-intensive funds and from venture capital and real estate investment fund participation units held for more than two years, and has been raised from 15% to 17.5% for income from other investment fund participation units.
- Withholding rates on bank deposits and participation accounts
Article 2 of the Decree amends certain withholding rates in items (2) and (3) of subparagraph (d) of the first paragraph of Article 1 of Council of Ministers Decree No. 2006/10731.
Accordingly, for income from deposit interest and from the profit shares of participation banks:
- the 15% withholding rate on accounts with terms of up to 6 months has been raised to 17.5%,
- the 12% withholding rate on accounts with terms of up to 1 year has been raised to 15%.
No change has been made to the 10% and 0% rates applied to inflation-indexed accounts and to accounts with terms longer than 1 year.
This provision entered into force on the date of publication, to apply from 9 July 2025 to interest and profit shares payable on demand and special current accounts, and to interest and profit shares payable on term accounts opened or renewed from that date.
For deposit interest:
i) demand and notice accounts and accounts with terms of up to 6 months (inclusive): from 15% to 17.5%,
ii) accounts with terms of up to 1 year (inclusive): from 12% to 15%,
iii) accounts with terms longer than 1 year: 10%,
iv) accounts with terms longer than 1 year bearing a variable interest rate linked to the inflation rate: 0%,
v) for FX-protected deposit accounts and deposit accounts converted into Turkish lira from foreign currency accounts at the conversion rate: from 15% to 17.5% for terms of up to 6 months (inclusive), from 12% to 15% for terms of up to 1 year (inclusive), and 10% for terms longer than 1 year,
vi) for deposit accounts converted into Turkish lira from gold accounts at the conversion price: from 15% to 17.5% for terms of up to 6 months (inclusive) and from 12% to 15% for terms of up to 1 year (inclusive).
- For profit shares paid by participation banks in return for participation accounts:
i) demand, notice and special current accounts and accounts with terms of up to 6 months (inclusive): from 15% to 17.5%,
ii) accounts with terms of up to 1 year (inclusive): from 12% to 15%,
iii) accounts with terms longer than 1 year: 10%,
iv) for FX-protected participation accounts and participation accounts converted into Turkish lira from foreign currency participation fund accounts at the conversion rate: from 15% to 17.5% for terms of up to 6 months (inclusive), from 12% to 15% for terms of up to 1 year (inclusive), and 10% for terms longer than 1 year,
v) for participation accounts converted into Turkish lira from gold participation fund accounts at the conversion price: from 15% to 17.5% for terms of up to 6 months (inclusive) and from 12% to 15% for terms of up to 1 year (inclusive).