With the Presidential Decree No. 9286, Dividend
Withholding Tax Rate Increased to 15%
With the changes made with the Decree Annexed to the
Presidential Decree No. 9286 published in the Official Gazette dated 22/12/2024
and numbered 32760;
·
Within the authority to determine the
withholding rates, given in Article 94 of the Income Tax Law No. 193, the
withholding rates to be applied to the dividends written in subparagraphs (1),
(2) and (3) of the second paragraph of Article 75 of the said Law, distributed
by the fully fledged taxpayer corporations to full fledged and limited taxpayer
real persons, non-income and corporate taxpayers, those exempt from income tax
and limited taxpayers who are exempt from income tax
·
Within the authority to determine the witholding
rates, given in Article 15 of the Corporate Tax Law No. 5520, the withholding
rates to be applied to the dividends distributed to tax-exempt corporations
under subparagraphs (1), (2) and (3) of the second paragraph of Article 75 of
the Income Tax Law,
·
Within
the framework of the authority to determine the withholding rates in Article 30
of the Law No. 5520, the withholding rates to be applied to the dividends
listed in subparagraphs (1), (2) and (3) of the second paragraph of Article 75
of the Income Tax Law, distributed by full-fledged taxpayer corporations to
limited taxpayer corporations or limited taxpayers exempt from corporate tax,
except for those who obtain dividends through a workplace or permanent
representative in Turkey, and the withholding rates to be applied to the
dividends of limited taxpayer corporations submitting annual or special
declarations, Withholding tax rates to be applied on the amount transferred to
the head office from the corporate income before deducting deductions and exemptions
and after deducting the calculated corporate tax,
Are increased from 10% to 15%.
As it is known, dividends distributed by full-fledged
taxpayer corporations to full-fledged taxpayer real persons, limited taxpayer
real persons, limited taxpayer corporations, those which are not subject to income or corporate tax and those
exempt from income tax are subject to income/corporate tax withholding. With
the regulation made by the Presidential Decree, the rate of withholding tax has
been increased from 10% to 15%. As of the publication date of the Decree,
dividends distributed will be subject to 15% withholding tax.
This Decree has entered into force as of December 22, 2024.
You can access the Decree from the link https://gib.gov.tr/node/179193.
The announcement of the Revenue Administration is as
follows;
Regulation made with
the Decree Annexed to the Presidential Decree No. 9286
With the regulation
made by the Presidential Decree, the rate of withholding tax on dividend
payments was increased from 10% to 15%.
Dividends distributed
by full-fledged taxpayer corporations to full-fledged taxpayer real persons,
limited taxpayer real persons, limited taxpayer corporations, non-income and
corporate taxpayers and those exempt from income tax are subject to
income/corporate tax withholding.
Half of the dividends
received by real persons are exempt from income tax and if the remaining amount
exceeds the second bracket of the income tax tariff for the relevant year
(230.000 TL for 2024), it must be declared with the annual income tax
declaration. All of the tax paid by withholding is deducted from the tax
calculated in the declaration.
Withholding tax is the
final tax for limited taxpayer real persons and corporations, non-income and
corporate taxpayers and those exempt from income tax.
Dividends distributed
as of the publication date of the Decree will be subject to 15% withholding
tax.
Sincerely, for your information.