Türkiye's Finance Minister Kemal Unakitan announced an eight-point reform package for the financial sector on Thursday, introducing significant changes to withholding tax rates for both foreign and domestic investors.
Under the new measures, non-residents investing in Türkiye's financial instruments will face a withholding tax of zero on their income and annuities. Unakitan said the move aligns Türkiye with EU practices on taxing investors based in other countries.
For Turkish residents, the government plans to seek cabinet approval to cut withholding tax on shares and private-sector bonds from 15 percent to 10 percent. The 15 percent rate will remain in place for deposits and repos, while Eurobonds will be excluded from the withholding tax system entirely.
Unakitan said the necessary legislative amendment would be submitted to parliament promptly, with the aim of securing approval before the summer recess.
The minister also reaffirmed the government's commitment to fiscal discipline, noting that Türkiye had already reached 63.1 percent of its annual non-interest surplus target within the first five months of the year. He said the government remains on track to hit a 6.5 percent non-interest surplus by year-end and will continue supporting the Central Bank's goal of 4 percent inflation by 2007-2008.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.