A 40 percent tax is expected for those who earn in the stock market and in foreign currency

AKPWith the new general bill presented by deputies to the Turkish Grand National Assembly, President Tayyip Erdoğan is authorized to increase the tax rates applied to interest income from foreign currency and money earned in the stock market to 40 percent. . Economic management imposed a number of additional burdens on banks, including increasing required reserves, in order to reduce savers’ demand for foreign currency. Additional cost preparations are now being made to directly cut savers’ foreign exchange earnings.

THE SECOND OBJECTIVE HAS THE STOCK MARKET

With Article 12 of the omnibus proposal, it is anticipated that the President will be authorized to collect up to 40 percent tax on the returns obtained from securities issued in foreign currency (eurobonds or debt securities in dollars) and interest income and dividends obtained from foreign currency accounts opened in banks. The current increase authority is currently limited to 30 percent and the tax burden is up to 25 percent. If the authority is fully utilized after the law comes into force, it will be more advantageous to purchase Treasury debt securities in Turkish lira instead of foreign currency and open TL accounts in banks instead of foreign currency. The omnibus bill provides that the president’s authority to increase tax rates on profits from the purchase and sale of stocks on the stock market by up to 15 percent will be increased to “up to 40 percent.” . This authority can be used at different rates depending on the share issuance date, issuers, account opening date, and type. Tax authority is still used to reduce, not increase.

Advantage extended to athletes

First The reduced-rate income tax on the income of athletes, including footballers, normally ends at the end of this year. However, with the omnibus bill, this period is extended for another five years until the end of 2028, and the president has the authority to extend it for five more years in the future. In sports subject to the league procedure, a tax of 20 percent of the winnings is currently collected from athletes playing in the higher league, a 10 percent tax is collected from athletes in the lower league and a 5 percent percent is collected from other leagues and from those not subject to the league procedure. league procedure.