July 10, 2023
Turkiye limits 0% withholding tax rate on share-buy-back transactions for corporations with shares traded in Borsa Istanbul
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