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Türkiye's Presidential Decision No. 6791 set a 0% withholding tax (WHT) on amounts regarded as dividends distributed as a result of share-buy-back transactions of Turkish full tax-liable corporations. (See EY Global Tax Alert, Türkiye reduces withholding tax to 0% on share-buy-back transactions, dated 15 February 2023.)
On 7 July 2023, Presidential Decision No. 7343 amended this rule, establishing that the 0% WHT will apply solely for amounts regarded as dividends distributed as a result of share buy-back transactions of full tax-liable corporations whose shares are traded on Borsa Istanbul.
This Decision entered into force on 7 July 2023 and applies to the shares acquired on and after 7 July 2023.
For additional information with respect to this Alert, please contact the following:
Kuzey Yeminli Mali Müsavirlik A.S., Istanbul
- Ates Konca, International Corporate Tax Advisory Leader
Ernst & Young LLP (United States), Turkish Tax Desk, New York
- Gamze Durgun
Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
