Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

December 22, 2021

Turkey reduces withholding tax rate on dividend distributions to 10%

On 22 December 2021, Turkey’s Presidential Decision No. 4936 (the Decision) was published in the Official Gazette. The Decision reduces the general withholding tax (WHT) rate on dividend distributions from 15% to 10%. The Decision entered into force and is effective on the date of its publication.

Accordingly, 10% WHT will apply on the dividends to be distributed by Turkish resident entities (fully liable corporate taxpayers) to:

  • Turkish resident individuals

  • Turkish residents who do not have any tax liability or are exempt from income and corporation taxes

  • Nonresident (limited liable) entities, excluding those who receive dividends through a permanent establishment and representative in Turkey

  • Nonresident individuals

  • Nonresidents who are exempt from income and corporation taxes

In addition, the branch remittance tax that is applied over the amount transferred to the headquarters by the nonresident entities who declare annual and special tax return in Turkey has also been reduced from 15% to 10%.

This local WHT rate will apply on the dividends once distributed as of the effective date of said Decision.

Some of the double tax treaties signed by Turkey (e.g., Double Tax Treaties signed with the Netherlands, Luxembourg) already limit the WHT rate on dividends to 10% under certain conditions. With the above-mentioned legislative change, the local WHT rate of 10% will be applied on the dividends to be distributed to any non-Turkish residents, regardless of the treaty eligibility conditions and tests.

There are also double tax treaties signed by Turkey (e.g., Double Tax Treaties signed with Switzerland, Germany, Austria) which provide WHT rates less than 10% on dividends under certain conditions. Treaty benefits will continue to be applicable subject to the fulfillment of the Treaty eligibility conditions and tests.


For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more