Turkey’s Revenue Administration has announced the publication of Presidential Decree No. 842 of 20 March 2019, which sets withholding tax rates applicable to proceeds from bonds and lease certificates issued abroad, as well as withholding tax on interest from foreign exchange deposits. For bonds and lease certificates issued abroad, the withholding tax rates on the interest/income are:

• 7% where the maturity period is up to one year;
• 3% where the maturity period is between one and three years; and
• 0% where the maturity period is three years or longer.

For interest paid on foreign exchange deposit accounts and on profit shares paid by banks to foreign currency participation accounts, the withholding tax rates are:

• 20% on checking and call accounts and long-term accounts with maturities up to and including one year; and
• 18% on long-term accounts with maturities exceeding one year.

The rates apply from 21 March 2019.