Period of deposit interest and reduced rate withholding applicable to dividends paid by participation banks has been extended to December 31, 2023.

In accordance with the Presidency Decree numbered 3032 (OG: 30.09.2020), withholding rates made on interests received from Turkish Lira deposit accounts and dividends paid to participation accounts by participation banks were temporarily reduced. Afterwards, the period of this implementation was extended several times.

This time, according to Presidency Decree numbered 7332 published on Official Gazette dated June 28, 2023, implementation period of such rate reductions has been extended until December 31, 2023.

In this framework, 5%, 3%, and 0% of withholding shall be applied according to its maturity in terms of TL deposit interests and dividends paid by participation banks in return for TL participation accounts.

The above withholding rates shall be applied in terms of interests and dividends payable to deposit and special current accounts until December 31, 2023 (including this date) and interest and dividends to be paid in terms of accounts opened or whose maturity is renewed between September 30, 2020 and December 31, 2023 (including this date).

In addition, with the Presidency Decree No. 7332; The period of 0% withholding, which is valid for interest earned from foreign currency-protected time deposit accounts and deposit accounts converted into Turkish lira at the conversion rate/price, has been extended until 31 December 2023.

With the said Decree; the period of 0% withholding, which is valid for profit shares obtained from participation accounts with currency protection and participation fund accounts denominated in foreign currency/gold and converted into Turkish lira at the conversion rate/price, has been extended until 31 December 2023.

Decree No. 7332 has entered into force on its publication date.