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July 10, 2023

Turkiye limits 0% withholding tax rate on share-buy-back transactions for corporations with shares traded in Borsa Istanbul

  • Presidential Decision No. 6791, published in the repeating Official Gazette dated 14 February 2023, eliminated the 15% withholding tax (WHT) on amounts considered to be dividends distributed as a result of share-buy-back transactions.
  • On 7 July 2023, Presidential Decision No. 7343, limited the application of the 0% WHT to share-buy-back transactions of corporations whose shares are traded in Borsa Istanbul (Istanbul Stock Exchange).

Turkiye's Presidential Decision No. 6791 set a 0% withholding tax (WHT) on amounts regarded as dividends distributed as a result of share-buy-back transactions of Turkish full tax-liable corporations. (See EY Global Tax Alert, Turkiye reduces withholding tax to 0% on share-buy-back transactions, dated 15 February 2023.)

On 7 July 2023, Presidential Decision No. 7343 amended this rule, establishing that the 0% WHT will apply solely for amounts regarded as dividends distributed as a result of share buy-back transactions of full tax-liable corporations whose shares are traded on Borsa Istanbul.

This Decision entered into force on 7 July 2023 and applies to the shares acquired on and after 7 July 2023.


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

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Ernst & Young LLP (United States), Turkish Tax Desk, New York

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor


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