Withholding Rates for Interest on Deposits Redetermined

According to the Presidential Decree No. 9075 published in the Official Gazette on November 1, 2024 and numbered 32709, the income tax rates calculated on interest earned from Turkish Lira Deposit Accounts and dividends paid by Participation Banks have been redetermined.

The following withholding tax rates will be applied to interest and dividends to be paid to accounts opened or renewed between 1 November 2024 and 31 January 2025:

1- Interests on Deposit Accounts;

• For demand and notice accounts and accounts with maturities up to 6 months (including 6 months), the income tax rate is 10%
• For time deposit accounts with maturity up to 1 year (including 1 year) the income tax rate is 7,5%
• For time deposit accounts with maturities longer than 1 year, the income tax rate is 5%
• For time deposit accounts with maturities longer than 1 year and variable interest rates depending on the inflation rate, the income tax rate is 0%

2- Dividends paid by participation banks based on participation account;

• For demand, notice and special current accounts and time deposit accounts with maturity up to 6 months (including 6 months) is 10%
• For time deposit accounts up to 1 year (including 1 year) is 7,5%
• For accounts with maturities longer than 1 year is 5%

You can access the relevant circular here (In Turkish).

Should you have any queries or need further details, please contact your customer representative.