Presidential Decision No. 11444 prolongs the preferential 0% withholding tax treatment for income and gains from government bonds, Treasury bills and certain Treasury-backed lease certificates until 31 December 2026.
Turkey has extended the application period of the 0% withholding tax (WHT) rate on income and gains derived from government bonds, Treasury bills and certain lease certificates by six months, following the publication of Presidential Decision No. 11444 in the Official Gazette on 20 June 2026.
The decision amends provisional article 4 of Decree No. 2006/10731, which implements provisional article 67 of the Individual Income Tax Law (IITL). Under the amendment, the expiry date for the reduced WHT rate has been moved from 30 June 2026 to 31 December 2026.
The extension allows the 0% WHT rate to continue applying to income and capital gains derived from government bonds and Treasury bills, as well as lease certificates issued by asset leasing companies established under Law No. 4749, including Treasury-backed issuers such as the Treasury Asset Leasing Joint Stock Company.
The measure applies to eligible securities acquired during the additional application period from 1 July 2026 through 31 December 2026. Investors purchasing qualifying instruments within this period will remain eligible for the 0% WHT treatment throughout their holding period.
According to the explanatory note accompanying the decision, the amendment was introduced under the authority granted by the 17th paragraph of Provisional Article 67 of Income Tax Law No. 193. The change extends the application of the reduced withholding tax regime for six months.
Presidential Decision No. 11444 was adopted on 19 June 2026 and entered into force on the date of publication.
