01.08.2025 11:58
The low withholding tax rates on the income obtained by investors from bonds, treasury bills, lease certificates, mutual funds, and profit shares have been extended until December 31, 2025. According to the decision published in the Official Gazette with the signature of President Erdoğan, the practice, which was expected to end on July 31, 2025, will continue until the end of the year.
With the decision published in the Official Gazette signed by President Erdoğan, the low withholding tax rates applied to capital market income have been extended until December 31, 2025. Thus, the tax advantage on state bonds, treasury bills, lease certificates, and some investment funds will continue until the end of the year.
WHAT HAPPENED?
With the regulation that came into effect in 2006, the withholding tax rate on income from certain investment instruments was reduced. These discounted rates, which were originally set to expire on July 31, will now be valid until the end of the year.
WHICH INVESTMENT INSTRUMENTS WILL BE AFFECTED?
State bonds and treasury bills, lease certificates, investment funds (especially exchange-traded funds, housing, and asset financing funds), and companies and investment partnerships that distribute dividends will continue to benefit from the low withholding tax rate until the end of the year.
WHAT ARE THE WITHHOLDING TAX RATES?
While a withholding tax rate of 10% is applied to state bonds and bill earnings, exchange-traded funds, housing, and asset financing funds benefit from a 0% withholding tax. A 15% withholding tax deduction is applied to dividend income. Investors will continue to benefit from these rates until the end of the year.
HOW WILL INVESTORS BE AFFECTED?
Thanks to this extension, individual and institutional investors will continue to benefit from low tax advantages until the end of the year.