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

February 15, 2023

Türkiye reduces withholding tax to 0% on share-buy-back transactions

  • Presidential Decision No. 6791 was published in the repeating Official Gazette dated 14 February 2023.

  • The decision reduces the withholding tax (WHT) rate to 0% from 15% on the amounts considered as dividends distributed as a result of share-buy-back transactions.

On 17 November 2020, Türkiye introduced a 15% WHT on the amounts regarded as dividends as a result of disposal or redemption of share buybacks of Turkish full tax liable corporations. See EY Global Tax Alert, Turkey enacts law on restructuring certain receivables and amends certain tax laws, dated November 23, 2020.

On 25 May 2021, Türkiye issued the Communiqué No.18 (the Communiqué) explaining the taxation of share buyback transactions. See EY Global Tax Alert, Turkey issues guidance on financing expense deduction restriction, taxation of share buybacks and reduced income tax rate for publicly held companies, dated May 25, 2021

Accordingly, a WHT rate of 15% was applicable, as of 17 November 2020, on the redemption or disposal of share buybacks by way of capital decrease, sale with loss and for the ones that are not disposed for certain period of time.

On 14 February 2023, under Presidential Decision No. 6791 published in the Official Gazette, this WHT rate is reduced to 0%.


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


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