Who is eligible for the lapsed dividend?

Abdulkadir Kahraman

The Constitutional Court (AYM) through its decision dated 10/04/2019 and no.2018/136,

K. 2019/21, annulled articles 1, 2, 3 and 4 of the Law no. 2308 finding the objection to the transfer of dividends that are decided to be paid to the shareholders of the company but not paid as unconstitutional.


Revocation of the Constitutional Court has been grounded on excessive limitation of the ownership rights of companies by the principle of the transfer of dividends in nature of lapsed corporate debt to the Treasury.


Following the Constitutional Court decision, the partnership has the right to freely save on the values that are standing for the provision of lapsed dividends. These values on which the companies may freely act will be subject to transfer tax.



This is the summary of the article published in the Ekonomist magazine’s issue 2019/33, dated 11.08.2019.




Explanations in this article reflect the writer's personal view on the matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any responsibility in respect of the information and explanations in the article. Please be advised to first receive professional assistance from the related experts before initiating an application regarding a specific matter, since the legislation is changed frequently and is open to different interpretations.