On 31 August 2018, Turkey published Decision No. 53 in the Official Gazette, which provides for a temporary three-month reduction of withholding tax rates on lira-denominated time deposit and participation accounts and a temporary increase on foreign currency deposit and participation accounts.

Depending on the length of maturity, the rates for lira-denominated accounts are adjusted as follows:

• Maturity less than six months – Reduced from 15% to 5%
• Maturity up to one year – Reduced from 12% to 3%
• Maturity exceeding one year – Reduced from 10% to 0%

For foreign currency accounts, the rates are adjusted as follows:

• Maturity less than six months – Increased from 18% to 20%
• Maturity up to one year – Increased from 15% to 16%
• Maturity exceeding one year – Maintained at 13%

The temporary adjustment in rates applies for deposit accounts for the three-month period 31 August to 30 November and on interest to be paid on accounts opened or renewed during that period.