Withholding tax rate on interest from bond issued by Turkish resident companies in abroad has been changed.
Before the change, rate structure was as follows;
The new rate structure on the interest from bond is as follows;
On the other hand, withholding tax rate on interest paid by Turkish resident banks on
has been changed from 1% to 0%.
The change is in fact a reduction of the withholding tax on the bonds, subordinated loans and loan on securitizations. It seems that Turkey tries to reduce cost of funding even for the short-term borrowings from abroad of the Turkish banks and other resident companies..