Support will be extended to the withholding of Protected Currency Deposits

The retention advantage for citizens in Protected Currency Deposits (KKM) will last until the end of the year.

According to the information received, the work of the Ministry of Finance in relation to said decision has concluded. The decision, signed by the Minister of Finance Mehmet Şimşek, was presented to the Presidency. The decision is expected to be published in the Official Gazette to enter into force.

With this decision, the tax advantages granted to KKM and participation accounts will continue to encourage savers to keep their savings in TL deposit and participation accounts and to encourage the preservation of TL’s value.

The period of the subsidized withholding rate applied to some securities and income from deposit accounts and TL participation accounts opened in TL will be extended until December 31, 2023.

THE TAX ADVANTAGE CONTINUES

Within the scope of the effective use of all instruments with the coordination of monetary and fiscal policies oriented towards production and exports, the application of the zero percent withholding is applied to the income obtained from these accounts of individuals and legal entities. make use of your savings. within the scope of the KKM system will continue until December 31, 2023.

Individuals do not file a declaration of 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 on their corporate income and do not pay corporate tax according to the exemption regulation in temporary article 14 of the KVK.

THE WITHDRAWAL DISCOUNT CONTINUES

With the decision signed by Şimşek and presented to the Presidency, the duration of the application of the discounted withholding rate on TL deposit accounts and open TL participation accounts will be extended until the end of the year.

Consequently, the withholding rates to be applied to interest returns on deposits and profit sharing from 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 on accounts with a maturity of up to 1 year (including 1 year) Will continue to apply as zero percent instead of 10 percent on deposit accounts term.

TIME ON RENTAL CERTIFICATES WILL ALSO BE EXTENDED

With said decision, the application of the zero percent withholding rate for income from State bonds and Treasury bills, and lease certificates issued by asset leasing companies constituted by the Government, will be extended until December 31, 2023. Treasure.

Consequently, the income tax withholding rate on these securities will continue to be zero percent instead of 10 percent.

Tax incentives for income from debt instruments issued by banks continue

With the decision, the duration of the discounted withholding on the income from bonds and bills issued by banks and the income from lease certificates of which these banks are recipients of the fund will be extended until the end of the year.

Instead of 10 percent, the withholding rate applied to income earned from these securities will continue to apply at 5 percent for those with a maturity of up to 6 months (including 6 months), 3 percent for those with a maturity of up to 1 year (including 1 year), and zero percent for those with maturities greater than 1 year.

THE WITHDRAWAL DISCOUNT CONTINUES IN MUTUAL FUNDS

With the decision, the discounted tax withholding period on income earned from mutual funds, whose portfolio is made up of TL and TL-denominated securities, will be extended until December 31, 2023, in order to encourage investors to resort to to securities issued in TL.

With the implementation, the withholding tax rate on income earned from mutual funds will continue to apply as zero percent instead of 10 percent.

Variable funds, mixed funds, Eurobonds, foreign loans, foreign funds, hedge funds and mutual funds with the phrase “currency” in their titles are not included in this scope.

With the regulation, as a requirement of the development of the capital markets for the sustainable growth of the Turkish economy, for the resources to be directed towards productive and technology-oriented and future areas, and to increase the diversity of market instruments of capital, the securities guaranteed by assets issued by mortgage financing institutions, which were constituted under the provisions of the Capital Market Law, have a mortgage guarantee. securities and mortgage-backed securities will run through the end of the year.

FX DEPOSIT ACCOUNTS

In order to encourage 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 interest currently charged to the accounts foreign currency deposit and dividends paid to foreign currency participation accounts by participation banks The applied withholding rate of 18 percent for long-term accounts was set at 25 percent, regardless of maturity.

The new withholding rate will be applied to accounts open or expired as of the effective date of the aforementioned decision.

For previously opened accounts, the old rates will be valid until the expiration date. (AA)