Turkey's Revenue Administration has announced the publication of Presidential Decision No. 4936 of 21 December 2021, which provides for a reduction in the withholding tax rate on dividends from 15% to 10% for the following beneficial owners:

• Resident and non-resident natural persons;
• Tax-exempt corporate entities; and
• Non-resident companies, unless the dividends are derived through a permanent establishment or representative in Turkey

It is also provided that the branch remittance tax rate on subsidiary profits remitted to a parent company is reduced from 15% to 10%. The rate reductions entered into force on 22 December 2021.

The Revenue Administration has also announced the publication of Presidential Decision No. 4937 of 21 December 2021, which temporarily reduces the withholding tax rate on government debt securities to 0%. The 0% rate applies on income and gains from government bonds and treasury bills that are acquired from 22 December 2021 to 31 December 2022. The 0% rate also applies for lease certificates issued by qualifying asset leasing companies that are acquired during the same period.

Note, the above measures were announced by Turkish President Recep Tayyip Erdoğan as part of a series of measures meant to address the devaluation of the Turkish lira and support business and investment. Further measures that were announced, but not yet confirmed, include a reduction in the corporate tax rate for companies in the export and industrial sectors and measures to expedite VAT refunds to improve cash flow for companies. Additional details on the implementation of these measures will be published once available.