Regulation to zero withholding rate in the distribution of dividends

Zero withholding tax application on dividend distribution was reorganized to cover own shares purchased by companies listed on Borsa Istanbul.

The President’s decision that modifies the decision of the Council of Ministers on withholding rates in Article 94 of Law No. 193 on Income Tax was published in today’s edition of the Official Gazette.

With the decision, in the last paragraph of article 1 of the respective decision; The phrase “0 percent withholding is applied on the amounts considered as dividends distributed with respect to its own shares or social participations acquired by fully-responsible capital companies” means “Dividends distributed with respect to its own shares acquired by limited-responsibility capital companies whose shares are traded in Borsa Istanbul”. A withholding of 0% is made on the amounts accounted for”. (Reuters)