Dividend Withholding Tax Rate Has Been Increased

New Development

According to Presidential Decree No. 9286 ("Decree"), published in the Official Gazette on 22 December 2024, the rate of withholding tax, applicable under the Income Tax Law and Corporate Income Tax Law, on the dividends distributed by resident entities and on the amounts transferred to the head office by non-resident entities, has been increased back to 15%.

What Has Been Introduced By the Decree?

Within the scope of the Decree, the withholding tax rate applicable on the following as per Article 94 of the Income Tax Law and Articles 15 and 30 of the Corporate Income Tax Law has been determined at 15%:

• Dividends distributed by resident entities to non-resident individuals, non-resident entities that are exempt from income or corporate income tax, and non-resident entities except for those who earn dividends through a permanent establishment or permanent representative in Türkiye