Subject: Withholding tax on profit distribution reduced to 10%
Presidential Decree No. 4936 related to withholding tax applicable on dividend payments was published in the Official Gazette dated December 22, 2021.
As it is known, no withholding tax is imposed on dividends paid to a resident company. On the other hand, dividends paid to a resident or non-resident individual, or a non-resident company, were subject to a 15% withholding tax within the scope of Article 94 of the Income Tax Law and Articles 15 and 30 of the Corporate Tax Law.
With the Decree, the withholding tax applicable on dividend payments has been reduced to 10% from 15% effective from December 22, 2021.
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