Turkey Gazettes Decision Setting Deduction, Exemption Rates for Foreign Dividends, Participation Earnings, Exports of Services

The Turkish Official Gazette April 30 published Presidential Decision No. 11257, setting income tax deduction and exemption rates for foreign dividends and participation earnings, and exports of services. The decision includes measures: 1) reducing, from 50 percent to 20 percent, the paid-in capital requirement for joint-stock or limited liability companies (LLCs) headquartered outside Turkey, for purposes of the 50 percent individual income tax exemption for foreign dividends; 2) reducing, from 50 percent to 20 percent, the paid-in capital requirement related to foreign affiliates, for the corporate income tax exemption for participation earnings derived from these affiliates, and increasing the exemption ...