Under the new amendment, Article 279 outlines the changes regulating the taxation of foreign clients. While the change looks at overall investors, those who qualify as a Type A investor will not be affected at this time. Type B investors, however, will be affected. Before detailing the newest change, we would like to provide a summation of the present tax situation in Turkey.
Foreign investors are exempt from paying taxes on dividends.
The tax will be applied upon maturity or at the time of sale. Please note this will only be applied to paper issued prior to December 1, 1999. There will be no tax applied to government paper issued after December 1, 1999. There is also no tax reclamation in Turkey. In addition, capital gains taxes are also applied in the Turkish market.