Turkey's Revenue Administration has announced the publication of Presidential Decree No. 3755 of 31 March 2021, which provides for an extension of the reduced withholding tax rates applicable to interest on deposit accounts denominated in Turkish lira (TRY). Previously scheduled to expire on 31 March 2021, the reduced rates now apply until 31 May 2021 as follows:

• TRY deposit accounts with a maturity of up to 6 months and current call accounts - 5%
• TRY deposit accounts with a maturity of up to 1 year - 3%
• TRY deposit accounts with a maturity exceeding 1 year - 0%

Presidential Decree No. 3755 also extends reduced withholding tax rates on income from bank bonds, and bills and lease certificates issued by asset leasing companies for which the fund user is a bank. The reduced rates apply until 31 May 2021 as follows on income derived from or gains from the disposal of:

• Bank bonds, and bills and lease certificates with a maturity of up to 6 months - 5%
• Bank bonds, and bills and lease certificates with a maturity of up to 1 year - 3%
• Bank bonds, and bills and lease certificates with a maturity exceeding 1 year - 0%

Presidential Decree No. 3755 entered into force on 1 April 2021.