0% Withholding Tax Application on Income Derived from Government Bonds, Treasury Bills, and Lease Certificates Extended to December 31, 2026

With the Presidential Decree No. 11444 published in the Official Gazette dated June 20, 2026, and numbered 33286, a significant extension has been made regarding the withholding tax applications on income derived from financial investment instruments.

The details of the regulation made within the framework of the authority granted in the seventeenth paragraph of provisional Article 67 of the Income Tax Law No. 193 are summarized below:

1. Financial Instruments with Extended Periods

Financial instruments that will continue to benefit from the discounted withholding tax rate application are as follows:

• Income derived from government bonds,

• Income derived from treasury bills,

• Income derived from lease certificates issued by asset leasing companies established in accordance with Law No. 4749.

2. New Application Period

• By amending the phrase “30/6/2026” in the provisional Article 4 of the Decree attached to the Council of Ministers Decision No. 2006/10731, the application period of the provisional article has been extended by 6 months.

• Accordingly, the discounted withholding tax rate (0%) application regarding the income derived from the investment instruments mentioned above will be valid until December 31, 2026 (including this date)[cite: 8].

Submitted for your information.