Income withholding tax rate for non-residents reduced to zero

Under Act 5527, published in the Official Gazette of 7 July 2006, the income withholding tax rate on qualifying interest income and capital gains derived by non-resident individuals and companies has been reduced from 15% to zero. The former 15% withholding tax was applicable from 1 January 2006 on payments by banks, stock brokers and intermediary institutions. The rate reduction does not cover resident investors. However, it is expected that, under the authority given by the Ac…