New Developments
The Presidential Decree No. 3491 ("Decree") published in the Official Gazette dated February 4, 2021, increased the income and corporate tax withholding rates applied under the Income Tax Law No. 193 and Corporate Income Tax Law No. 5520 to construction and restoration works that last several years.
What Does the Decree Mean?
The Decree increased the income and corporate income tax withholding rates applicable to construction and restoration works that last several years from 3% to 5% for allowance amounts and progress payments.
The new withholding tax rates will be applied to payments made as of March 1, 2021.
Conclusion
The Decree increased the income and corporate income tax withholding rates applicable to allowance amounts and progress payments within the scope of construction and restoration works that last several years from 3% to 5%.
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