Turkey:
An Increase In Withholding Tax Rates Applied To Years-Long Construction And Restoration Works
08 February 2021
Esin Attorney Partnership
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New Developments
The Presidential Decree No. 3491
("Decree") published in the Official
Gazette dated February 4, 2021, increased the income and corporate
tax withholding rates applied under the Income Tax Law No. 193 and
Corporate Income Tax Law No. 5520 to construction and restoration
works that last several years.
What Does the Decree Mean?
The Decree increased the income and corporate income tax
withholding rates applicable to construction and restoration works
that last several years from 3% to 5% for allowance amounts and
progress payments.
The new withholding tax rates will be applied to payments made
as of March 1, 2021.
Conclusion
The Decree increased the income and corporate income tax
withholding rates applicable to allowance amounts and progress
payments within the scope of construction and restoration works
that last several years from 3% to 5%.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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