Turkey has amended withholding tax rules under Presidential Decision No. 11344, lowering the rate on qualifying nuclear construction progress payments to 1% from 1 June 2026.
Turkey reduced the withholding tax rate on progress payments for nuclear power plant construction and repair work from 5% to 1% under Presidential Decision No. 11344 on 18 May 2026.
The Decision amends withholding tax provisions under article 94 of the Individual Income Tax Law and articles 15 and 30 of the Corporate Income Tax Law.
Under the revised framework, the 1% rate will apply to progress payments made to resident individuals, resident corporations and non-resident corporations engaged in qualifying nuclear power plant construction and repair works.
Presidential Decision entered into force on the date of its publication, 18 May 2026. However, the reduced withholding tax rate will apply to payments made from 1 June 2026.
