ANKARA, April 2 (Reuters) – A draft proposal for a revised withholding tax on investments is ready and will be presented to Turkey’s Prime Minister Tayyip Erdogan next week, state economy sources said on Friday.
The proposals suggest a withholding tax of either nil or 10 percent on bonds for local and foreign investors, with a tax rate of 10 percent the preferred option. The draft also envisages scrapping withholding tax on equity-based A-type funds.
Turkey’s Constitutional Court ruled last year in favour of making the tax on bonds, shares and mutual funds equal for domestic and foreign investors after the government removed the tax for foreigners in 2006.
(Reporting by Orhan Coskun)