Application period of reduced rate withholding applied in terms of investment fund income except for foreign currency fonds and issued bond yields has been extended until June 30, 2022.

According to Presidency Decree numbered 3321 (OG: 23.12.2020), rates of withholding to be made from the income and profits from bonds and bills acquired between this date and March 31, 2021 and issued by banks and the income and profits from lease certificates issued by asset leasing companies where the fund user is banks were reduced. Afterwards, the period of this implementation was extended several times.

In this framework, 5%, 3%, and 0% of withholding is made based on income and revenues obtained from such bills and bonds and lease certificates depending upon maturity or keeping period of bonds and lease certificates.

According to Presidency Decree numbered 5360 published on Official Gazette dated Friday, April 01, 2022, implementation period of such rate reductions has been extended until June 30, 2022.

On the other hand, according to Presidency Decree numbered 3321 again, withholding rate to be applied based on income and profits gained from investment funds (except for variable, mixed, eurobond, external borrowing, foreign, free funds and investment fund having foreign currency statement in its title) acquired between December 23, 2020 and March 31, 2021 was reduced to 0 (zero)% and period of such application was extended several times.

According to Presidency Decree numbered 5360, implementation period of such rate reductions has been extended until June 30, 2022. In this context, 0% of withholding shall be applied based on income and revenues obtained from investment fund acquired until June 30, 2022.