On 30 June 2008, Government Emergency Ordinance 91 was published in the Official Gazette No. 480 amending the Fiscal Code. The amendments enter into force as of 1 January 2009. The major changes are described below.
Withholding tax on dividends
The withholding tax rate on dividends distributed to non-resident companies will be reduced to 10% (currently 16%).
The amendment addresses the discrimination issues raised by the European Commission in a recent infringement procedure.
The participation condition in the text implementing the Parent-Subsidiary Directive 90/435/EEC will be reduced to 10% (currently 15%).
The tax loss incurred as of 2009 can be carried forward for a period of 7 years (currently 5 years).
Interest income of individuals
Interest income of resident and non-resident individuals from government bonds and other debt instruments issued by the government (or government agencies) is tax exempt.