Foreign Currency and Gold Taxes Reduced in TL Deposits

Foreign Currency and Gold Taxes Reduced in TL Deposits Foreign currency and gold taxes were reduced in TL deposits. BITT applied to foreign exchange transactions was reduced to 2 per thousand. The Presidential decision on the issue was published in the Official Gazette and entered into force. According to the Presidential decision published in the Official Gazette, the "1% (percent) in the subparagraph (e) of the first paragraph of Article 1 of the Decision of the Council of Ministers dated 28/8/1998 and numbered 98/11591 regarding the determination of the rates of tax on bank and insurance transactions. 1) The phrase "was revised to" two per thousand ". The tax withholding from the interest yield of Turkish lira deposits was reduced and the rate was zeroed in deposit accounts with maturities longer than 1 year. According to the decision, the withholding rates were reduced in income from TL deposits and participation accounts until December 31, 2020, in order to protect the value of the Turkish lira, to ensure that savings are kept in deposit and participation accounts opened in Turkish lira, and to encourage the use of under-pillow savings in these accounts.   What Happened to TL Deposits? From the interest paid to Turkish lira deposits, 15 percent deduction for demand and notice accounts and term accounts up to 6 months (including 6 months) up to 5 percent, and 12 percent deduction for term accounts up to 1 year (including 1 year) has been reduced to 3 percent. The deduction rate of 10 percent for accounts with a maturity of more than 1 year was zeroed.   What are the Dividends? Of the dividends paid by participation banks against participation accounts, these rates will be applied as 5 percent for demand deposit, notice and special current accounts and time accounts up to 6 months (including 6 months), and 3 percent for term accounts up to 1 year (including 1 year). There will be a reset in accounts with a maturity of more than 1 year. Income from foreign currency deposit accounts and the withholding rates on accounts with a variable interest rate of more than one year depending on the inflation rate was not changed. The aforementioned decision will be applied to demand and special current accounts limited to 3 months from the date of its publication, and to interest and dividends to be paid to time deposits opened or matured within 3 months from the said date.