Decision on Withholding Tax Rates Under Provisional Article 67 of Income Tax Law No. 193 (Decision No. 11107)

This Presidential Decree (No. 11107) adjusts the withholding tax (tevkifat) rates applicable under Provisional Article 67 of Income Tax Law No. 193. Provisional Article 67 is the primary legislative mechanism governing withholding taxes on returns from capital market instruments, bank deposits, repo transactions, investment funds, and similar financial products in Turkey. The decree exercises the executive's authority to set and modify these rates within bounds established by the Grand National Assembly. Such adjustments are typically made in response to changing macroeconomic conditions, inflation dynamics, or policy objectives around domestic savings and capital market development. Affected financial instruments commonly include: TL and FX-denominated bank deposit interest, government debt securities (Eurobonds, Treasury bills), mutual fund and exchange-traded fund (ETF) returns, repo/reverse-repo gains, and dividend income from participation accounts. Different rates may apply depending on the currency denomination, maturity, and instrument type. Taxpayers — both individuals and certain institutional investors — holding these instruments will see their net yields adjusted by the new withholding rates effective from the date specified in the decree. Financial intermediaries (banks, brokerage houses) are responsible for calculating, deducting, and remitting withholding taxes to the Revenue Administration.

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