Extension of the Reduced Withholding Tax Rates Applicable to Income from Government Bonds, Treasury Bills, and Lease Certificates
Presidential Decision No. 11444, published in the Official Gazette dated 20 June 2026 and numbered 33286, extends the duration of the reduced withholding tax (tevkifat) advantage applicable to income from government bonds, Treasury bills, and lease certificates.
Provisional Article 67 of Income Tax Law No. 193 allows for a reduced withholding tax rate, applicable until a specified date, on interest and gains derived from public debt instruments such as government bonds and Treasury bills. The duration of this reduced-rate application is set out in Provisional Article 4 of the Decision annexed to Council of Ministers Decision No. 2006/10731 dated 22 July 2006, and has been periodically extended. Under the previously applicable regulation, this period was due to expire on 30 June 2026. Decision No. 11444 has changed this date to 31 December 2026. In other words, the existing reduced withholding tax regime has been extended by a further six months and will remain in effect until the end of the year.
The extension covers income derived from government bonds and Treasury bills, as well as income derived from lease certificates issued by asset leasing companies established pursuant to Law No. 4749 on the Regulation of Public Finance and Debt Management. The Decision contains an important timing condition: the extended period applies to income and gains derived from the relevant securities acquired on or after 1 July 2026. The Decision entered into force on its publication date.
The Decision does not amend the withholding tax rates themselves; the existing rates remain unchanged. The regulation solely extends the period during which these rates apply.
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