TAX
BULLETIN: TAX 2025-043 03/04/2025
THE RATE OF LEVY ON CERTAIN CONSTRUCTION AND REPAIR
WORKS OVER THE YEARS HAS BEEN REDUCED FROM 5% TO 1%
As is known, advance payments and progress payments made for
construction and repair works that span more than one calendar year
are subject to withholding tax pursuant to Article 94 of the Income
Tax Law and Articles 15 and 30 of the Corporate Tax Law.
With Presidential Decree No. 9707, published in the Official
Gazette dated 30/03/2025 and numbered 32857, amendments have been
made to the relevant Decrees, and the applicable withholding tax
rates have been redefined as follows:
- 1% on progress payments made to contractors for the
construction and repair of railway lines, tramways, funiculars,
monorails, subways, and urban rail transportation systems,
