Withholding tax rate on money market funds increased to 10 percent
With a presidential decree published in the Official Gazette, the withholding tax rate on the earnings of money market funds and certain free funds has been raised to 10 percent.
By a presidential decree, the withholding tax rate applied to the earnings of money market funds and free funds containing the phrase "money market" in their title has been increased to 10 percent.
Decree Published in the Official Gazette
Prepared within the scope of the relevant article of the Income Tax Law, the presidential decree entered into force upon publication in the Official Gazette, and fund withholding tax rates were reorganized.
New Withholding Tax Rate Application
The withholding tax rate applied to earnings derived from money market funds by corporate tax payers, investment funds, and partnerships has been set at 10 percent. The rate, which was previously applied as zero, has been changed in this manner.
Fund Types Within the Scope
The new 10 percent withholding tax application directly covers participation share earnings of money market funds and free funds whose titles include the phrase money market. The 0 percent application continues for other earnings.
Old Fund Purchases and Transition Rule
The purchase date of the funds will be taken into account in the application of the new rate, and the portion of the earnings corresponding to the relevant period will be taxed upon the sale of funds purchased before the publication date.
Implementation Responsibility
The Minister of Treasury and Finance will be directly responsible for the enforcement of all provisions regarding the published decree.