Presidential Decree No. 9286, published in Official Gazette No. 32760 of 22 December 2024, raised the dividend withholding rate from 10% to 15%.
Presidential Decree No. 9286, published in Official Gazette No. 32760 of 22 December 2024, raised the dividend withholding rate from 10% to 15%.
Under the Decree, the withholding rate has been raised from 10% to 15% on:
- dividends distributed by resident entities to resident natural persons, to persons not liable to personal or corporate income tax, and to persons exempt from personal income tax,
- dividends distributed by resident entities to non-resident natural persons and to non-residents exempt from personal income tax,
- dividends distributed to entities exempt from tax,
- dividends distributed by resident entities to non-resident entities or to non-residents exempt from corporate income tax, other than those deriving dividends through a workplace or permanent representative in Türkiye,
- amounts transferred to head office by non-resident entities filing an annual or special return, out of the balance remaining after deducting the calculated corporate income tax from corporate income before deductions and exemptions.
The provision entered into force on 22 December 2024. The withholding rate of 15% will apply to profit distributions made after that date.