The withholding rate on dividends of companies traded on the stock exchange has been reduced to zero.

The withholding rate for profit shares of companies traded on Borsa Istanbul will be 0 percent. The withholding rate for profit shares of companies traded on Borsa Istanbul will be 0 percent. The Presidency’s decision on the subject was published in the Official Gazette. The last paragraph of article 1 of the Decision annexed to the Decision of the Council of Ministers numbered 2009/14592 dated 12/1/2009 regarding the withholding rates included in article 94 of the Income Tax Law No. 193 has been amended. Accordingly, within the scope of the fourth paragraph of article 94 of Law No. 193, a withholding tax of 0 percent will be applied on the amounts considered as distributed profit shares with respect to the acquisition of own shares by fully taxpayer capital companies whose shares are traded on Borsa Istanbul. The decision entered into force to be applied with respect to shares acquired as of the date of publication.