Withholding rate for construction and repair works extending to years increased from 3% to 5%.

Through the Presidential Decision no.3491 published in the Official Gazette dated 4 February 2021; the withholding tax rate on payments made for construction and repair works extending to more than one calendar year has been increased from 3% to 5% pursuant to the Article 94 of the Income Tax Law and articles 15 and 30 of the Corporate Tax Law.

These rates will apply on payments made in cash or on account including advances as of 1 March 2021.