Turkey’s Revenue Administration has announced the publication of Presidential Decision No. 9487 on 31 January 2025, which extends and modifies the reduced withholding tax rates on income from deposit accounts held in Turkish lira (TRY).

Under the new decision, the withholding tax rate for TRY deposit accounts with maturities of up to 6 months and current call accounts has increased to 15%, up from the previous 10%. For deposit accounts with maturities ranging from over 6 months to 1 year, the rate has risen to 12%, up from 7.5%. For accounts with maturities exceeding 1 year, the rate now stands at 10%, up from 5%.

The reduced withholding tax application applied to income from government bonds and treasury bills, as well as income from lease certificates issued by asset leasing companies established under Law No. 4749, has been extended until 30 April 2025.

The reduced withholding tax application applied to interest and profit shares paid to TL deposit/participation accounts, including exchange rate-protected accounts, income from bonds and bills issued by banks, income from lease certificates issued by asset leasing companies where the fund user is these banks, and income from asset-backed securities, mortgage-backed securities, asset-covered securities, and mortgage-covered securities issued by mortgage finance institutions established under the provisions of the Capital Markets Law has been terminated without any extension.

This Presidential Decision came into effect on 1 February 2025.

Earlier, the Revenue Administration of Turkey announced the release of Presidential Decision No. 9286 on 22 December 2024, updating the withholding tax rate on dividend distributions.