The work of the Ministry of Treasury and Finance regarding the said decision has been completed. The decision, signed by the Minister of Treasury and Finance Mehmet Şimşek, was presented to the Presidency. The decision is expected to be published in the Official Gazette to enter into force.
With the said decision, the tax advantages provided to KKM and participation accounts will be continued in order to encourage savers to keep their savings in TL deposit and participation accounts and to encourage the preservation of the value of TL.
The period of the discounted withholding rate applied to some securities and incomes from TL deposit accounts and participation accounts opened in TL will be extended until 31 December 2023.
Tax advantage continues in KKM and participation accounts
Within the scope of the effective use of all instruments with the coordination of production-oriented and export-oriented monetary and fiscal policies, the zero percent withholding application applied to the incomes obtained from these accounts of real and legal persons who make use of their savings within the scope of the KKM system will continue until 31 December 2023.
Real persons do not submit a declaration for their income from KKM accounts subject to zero percent withholding. Corporate taxpayers, on the other hand, include the income they receive from their KKM accounts subject to zero percent withholding, into their corporate income and do not pay corporate tax in accordance with the exemption regulation in the temporary 14th article of the KVK.
Withholding tax discount continues on TL deposits and participation accounts
With the decision signed by Şimşek and submitted to the Presidency, the duration of the discounted withholding rate application in TL deposit accounts and participation accounts opened in TL will be extended until the end of the year.
Accordingly, the withholding rates to be made on deposit interest incomes and profit shares of participation accounts are 5 percent instead of 15 percent in accounts with a maturity of up to 6 months (including 6 months), 3 percent instead of 12 percent in accounts with a maturity of up to 1 year (including 1 year). It will continue to be applied as zero percent instead of 10 percent in time deposit accounts.
The withholding tax rate on income from lease certificates will remain at zero percent.
With the said decision, the zero percent withholding rate application will be extended until December 31, 2023 for revenues from government bonds and Treasury bills, and lease certificates issued by asset leasing companies established by the Treasury.
Accordingly, the withholding tax rate on income from these securities will continue to be zero percent instead of 10 percent.
Tax incentives continue for income from debt instruments issued by banks
With the decision, the duration of the discounted withholding tax on incomes from bonds and bills issued by banks and income from lease certificates of which these banks are the fund user will be extended until the end of the year.
Instead of 10 percent, the withholding rate applied to the incomes obtained from these securities will continue to be applied as 5 percent for those with maturities of up to 6 months (including 6 months), 3 percent for those with maturities up to 1 year (including 1 year), and zero percent for those with maturities longer than 1 year.
Withholding tax reduction in mutual funds continues
With the decision, the period of discounted withholding tax on incomes obtained from mutual funds, whose portfolio is TL and TL denominated securities, will be extended until 31 December 2023, in order to encourage investors to turn to securities issued in TL.
With the application, the withholding tax rate on the incomes obtained from mutual funds will continue to be applied as zero percent instead of 10 percent.
Variable, mixed, Eurobond, foreign borrowing, foreign, hedge funds and mutual funds with the phrase “currency” in their titles are not included in this scope.
Extending the duration of the withholding tax incentive on income from asset and mortgage-backed securities and mortgage and asset-backed securities
With the regulation, as a requirement of the development of capital markets for the sustainable growth of the Turkish economy, for the resources to be directed towards future and technology-oriented and productive areas, and in order to increase the diversity of capital market instruments, the asset-backed securities issued by the mortgage finance institutions, which were established under the provisions of the Capital Markets Law, are mortgage-backed. The effective period of the 10% withholding tax rate applicable to income and earnings from securities, asset-backed securities and mortgage-backed securities will be extended until the end of the year.
Withholding tax rate for foreign exchange deposit accounts and foreign exchange participation accounts has been redefined
In order to encourage the deposit and participation accounts opened in TL with the Decision, 20 percent for current and notice accounts and deposit accounts up to 1 year (including 1 year) for the interests currently charged to foreign currency deposit accounts and dividends paid to foreign currency participation accounts by participation banks. The withholding rate applied as 18 percent for long-term accounts was determined as 25 percent, regardless of maturity.
The new withholding rate will be applied to accounts opened or overdue as of the effective date of the said decision.
For previously opened accounts, the old rates will be valid until the maturity date.